Elecon Engineering Company Limited (ELECON)
Large CapIndustrials stocks · Large cap · NSE
Elecon Engineering is one of Asia’s largest industrial gear manufacturers and a market leader in Material Handling Equipment in India. With over seven decades of experience, it provides industry-agnostic gear solutions and sophisticated bulk material handling equipment, serving diverse industrial sectors.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -60% YoY · margin compression · Rev +6% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹521 Cr | +6.1% | -30.2% |
| EBITDA | ₹109 Cr | -16.2% | -31.0% |
| Operating margin | 21.0% | -600 bps | +0 bps |
| PAT | ₹70 Cr | -60.0% | +1066.7% |
| PAT margin | 13.4% | -2220 bps | +1264 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Elecon reports resilient Q1 FY27 with 11.9% YoY revenue growth to ₹521 crores and 3.9% YoY EBITDA growth to ₹109 crores (adjusted). Order intake rose 23% YoY to ₹755 crores, with open order book up 37% YoY to ₹1,518 crores, providing strong revenue visibility.
Q1 FY27 results show continued growth, driven by the Gear Division and a robust order book. The MHE division experienced temporary moderation in execution but has a healthy pipeline. Overseas growth is strong. Management is confident in sustaining profitable growth and market leadership.
Q1 FY27 Revenue by Segment
Latest issuer-disclosed distribution across 2 reported categories.
Gear Division Performance
Strong growth trajectory with 16.3% YoY revenue increase, driven by improved execution and healthy domestic/international demand.
Robust Order Book
Consolidated open order book of ₹1,518 crores (+37% YoY) provides strong revenue visibility for future quarters.
Overseas Market Expansion
Overseas revenue grew 21.9% YoY to ₹151 crores, contributing 29% of consolidated revenue, with new MHE order in port industry.
Defence Sector Opportunity
Only company in India capable of manufacturing complex gearboxes for the Indian Navy.
Renewable Energy Capacity
8.3 MW solar plant under commission, adding to existing 13.2 MW wind and 5.5 MW solar power.
Recovery in International Markets
Early signs of recovery across several international markets, encouraging global presence expansion.
Strong Underlying Domestic Demand
Despite temporary MHE project execution softness, underlying demand environment remains strong for the market.
Global Macroeconomic & Geopolitical Uncertainties
Persisting uncertainties could impact international operations and demand.
Increased Input Costs
Impacted EBIT margins in both Gear and MHE divisions.
MHE Project Execution Moderation
Temporary softness in project execution led to marginal revenue degrowth in MHE division.
Project Execution Delays
Temporary moderation in MHE project execution impacted Q1 revenue, indicating potential for future delays.
Input Cost Volatility
Increased input costs impacted EBIT margins, suggesting vulnerability to raw material price fluctuations.
Global Economic Volatility
Management acknowledges global macroeconomic and geopolitical uncertainties.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company explicitly presents Q1 FY27 results against adjusted Q1 FY26 figures, highlighting year-on-year growth for revenue, EBITDA, and order book. This indicates a focus on annual performance trends.
Consolidated Revenue Growth
₹521 crores, +11.9% YoY (adjusted).
Consolidated EBITDA Margin
21.0% (-160 bps YoY adjusted).
Consolidated Order Intake
₹755 crores, +23% YoY.
Consolidated Open Order Book
₹1,518 crores, +37% YoY as of June 30, 2026.
Sustaining Profitable Growth
Confident of sustaining profitable growth, strengthening market leadership, and creating long-term value.
Focus on Global Expansion
Remain focused on expanding global presence and capitalizing on international market opportunities.
Continuous R&D Investments
Supported by advanced manufacturing capabilities and continuous investments in R&D.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| MHE Division Execution | Q1 FY27 revenue declined 2.9% YoY due to temporary project execution softness. | Improved execution and stronger performance in coming quarters, supported by healthy open order book and inquiry pipeline. |
| EBITDA Margin Trend | Consolidated EBITDA margin at 21.0% (-160 bps YoY adjusted), impacted by input costs. | Stabilization or improvement in margins, especially with managing input costs and product mix. |
| Order Intake Momentum | Consolidated order intake of ₹755 crores (+23% YoY). | Sustained strong order intake across both divisions to maintain revenue visibility. |
| Overseas Revenue Contribution | Overseas revenue grew 21.9% YoY, contributing 29% of consolidated revenue. | Continued robust growth in overseas markets and increasing contribution to overall revenue. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -2.5% / mo · MACD +
Technical chart
ELECONdaily · 1Y · AUTO+8.5%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 49. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- Recent death cross (SMA50 crossed below SMA200).
- SMA20 falling (~2.6% over last month) — short-term momentum negative.
- RSI(14) at 49 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 32% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- 31.0% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (+0.9% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 47 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 47 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 18/25 to the score.
- Balance sheet contributes 9/15 to the score.
Main drags
- Fair-value margin of safety is negative at -4.0%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 9/20; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 78th percentile of the scored universe and 76th percentile within Industrials. Main check: results consistency is weak at 39/100.
High Trust Lite: Promoter holding is 59.3%. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 76th pctile, median 68 · Large: 59th pctile, median 73
104 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 59.3%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.4%.
- ▸12 years of positive FCF.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -5.8%.
- ▸0/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 32.20
- P/B
- 4.21
- EV/EBITDA
- 16.38
- Market Cap
- 9733.00Cr
Profitability
- ROE
- 16.40%
- ROCE
- 20.90%
- ROA
- 7.30%
- Dividend Y
- 0.46%
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 44.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- 14.00%
Balance Sheet
- Debt/Equity
- 0.12
- Interest Coverage
- 18.59×
- Altman Z
- 8.50
- Book Value
- 103.00
Cash Flow
- FCF Yield
- 1.36%
- FCF Positive Y
- 12/5
- OCF
- 314.00 Cr
- EPS TTM
- 10.53
Shareholding
- Promoter Hold
- 59.28%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 29%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.