Shares of Elecon Engineering Company dropped as much as 13.57% to hit an intraday low of ₹435 on Friday, January 9, on the National Stock Exchange. According to reports from Upstox, the decline followed the company's announcement that Chief Financial Officer Narasimhan Raghunathan resigned from his position. On the BSE, Elecon Engineering Company shares dropped as much as 13.43%. The company announced post market hours that its board has approved the resignation of Narasimhan Raghunathan as CFO and Key Managerial Personnel with effect from the close of business hours on January 31, 2026, citing personal or family commitments.
Elecon Engineering Company Limited has secured a favorable outcome in its GST-related appeal case, receiving approval from the Office of the Deputy Commissioner of State Tax (Appeal), Vadodara on January 7, 2026. The company disclosed this development to stock exchanges on January 8, 2026, in compliance with SEBI listing regulations. The appeal was filed against an order regarding the detention of a transport vehicle due to the transporter's failure to produce prescribed documents under Section 129 of the CGST Act. The company had paid a penalty of ₹14,01,764 to secure vehicle release and now awaits refund following the favorable ruling. According to the company's filing, the favorable order has no adverse financial implications on operations.
Elecon Engineering Company's Q3FY26 results showed mixed performance with consolidated revenue of ₹552 crore, marking a growth of 4.3% year-on-year compared to ₹529 crore in the same period last year. However, the company faced significant margin pressures with net profit declining 33% to ₹72 crore from ₹108 crore in Q3FY25. The operating profit (EBITDA) fell 23.4% to ₹109 crore compared with ₹143 crore in the corresponding quarter of the previous year, while EBITDA margins compressed to 19.8% from 27% in the year-ago period. As reported by financial data, the PAT margin dropped to 13% from 20.3% in Q3FY25.
The company's two main divisions showed divergent performance trends during Q3FY26. The Gear division maintained flat growth with revenue of ₹429 crore compared to ₹423 crore in Q3FY25, representing a modest 1.3% increase. However, the division's EBIT declined 33.6% to ₹78 crore with margins compressing to 18.2% from 27.8%. In contrast, the Material Handling Equipment (MHE) division demonstrated stronger momentum with revenue growing 16.3% to ₹123 crore from ₹105 crore, though its EBIT also declined 24% to ₹25 crore with margins falling to 20.2% from 30.9%.
Despite the challenging quarterly performance, Elecon Engineering reported strong order intake of ₹701 crore for Q3FY26. The company's order book as of December 31, 2025, stood at ₹1,372 crore, providing good visibility for future revenue execution. According to the company's exchange filing reported by Upstox, the FY26 Revenue Guidance may be lower by up to 5%, while Adjusted EBITDA margins may be lower by up to 2%. Chairman & Managing Director Prayasvin B. Patel emphasized the strategic objective of generating 50% of consolidated revenue from international markets by FY30, supported by strengthening relationships with global OEMs and continued brand-building initiatives across multiple geographies.
