Elecon Engineering delivered robust second quarter results with revenue increasing 10.6% to ₹639 crore in the September quarter compared to ₹578 crore in the same period last year. According to reports from CNBC TV18, net profit grew 9.8% to ₹96.3 crore from ₹87.7 crore in the corresponding quarter of the previous fiscal year. The company demonstrated strong operational efficiency with EBITDA rising 17.8% to ₹147.9 crore from ₹125.6 crore year-on-year, while EBITDA margin expanded to 23.15% in Q2 from 21.73% in the year-ago period. The gear division specifically contributed ₹488 crore in revenue, up 10.6% year-on-year, with EBIT increasing 27.2% to ₹108 crore and an open order book of ₹1,056 crore as of September 30, 2026.
The strong financial performance triggered an immediate market response with Elecon Engineering shares surging 13% following the results announcement. As reported by CNBC TV18, the stock was trading at ₹492.75 after the results, marking the biggest single-day gain in three weeks. The company's board of directors declared an interim dividend of ₹0.5 per equity share of ₹1 each, with the record date set as October 21, 2026. The dividend will be paid to all shareholders on or after Wednesday, November 4, 2026.
The material handling equipment division demonstrated strong performance with revenue of ₹151 crore, up 10.4% year-on-year in the September quarter. According to latest reports, order intake rose 32.5% to ₹253 crore, while the open order book grew 27.3% to ₹579 crore. However, profitability remained under pressure from an unfavorable product mix, higher input costs, and slower project execution. This division has been a key growth driver for the company's diversification strategy beyond traditional gear solutions.
Elecon's consolidated order intake increased 8.4% to ₹746 crore in the September quarter, while the total open order book reached ₹1,635 crore as of September 30, 2026, representing a 33% year-on-year growth. The company has outlined capital expenditure of around ₹400 crore over FY26-28 to upgrade manufacturing facilities and expand capacity. Future performance will depend on the company's ability to convert its substantial order book into revenue, execute projects on schedule, and sustain margins across both divisions. The material handling equipment division's overseas expansion and the gear division's strong order book provide a solid foundation for continued growth.
The positive market reaction has significantly improved the stock's year-to-date performance, with Elecon Engineering shares turning positive for 2026 following the strong quarterly results. An investment of ₹1 lakh in April 2020, when the stock traded at around ₹14, would be worth approximately ₹33.6 lakh at the current share price of ₹470, representing a remarkable gain of nearly 3,257% in about six and a half years. The company's consolidated revenue more than doubled between FY20 and FY26, rising from around ₹1,088 crore to ₹2,366 crore, while consolidated EBITDA increased substantially, reflecting the expansion of the business over the six-year period.
