ELECON
Large CapElecon Engineering Company Limited
Auto
Elecon Engineering Company Limited is an Indian manufacturer of industrial gear solutions and material handling equipment. It operates state-of-the-art facilities, including an in-house R&D, and serves diverse sectors like power, steel, cement, and mining, with a global presence across 95+ countries.
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 is neutral, 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 31 Mar 2026
Bad · 0/100Rev -7% YoY · PAT -96% YoY · margin compression · +35% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹745.6 Cr | -6.5% | +35.1% |
| EBITDA | ₹158 Cr | -19.1% | +44.7% |
| Operating margin | 21.2% | -330 bps | +140 bps |
| PAT | ₹6 Cr | -95.9% | -91.7% |
| PAT margin | 0.8% | -1757 bps | -1225 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4FY26 consolidated revenue declined 7% YoY to Rs 746 crores, with EBITDA down 19% YoY to Rs 158 crores (21.2% margin). FY26 revenue grew 6% YoY to Rs 2,366 crores, but EBITDA fell 5% YoY to Rs 523 crores (22.1% margin), impacted by Gear division delays and global challenges.
The Q4FY26 performance was impacted by delays in the Gear division due to global macroeconomic challenges. However, the MHE division showed strong growth, and the overall open order book remains robust, providing good visibility for FY27. Management's focus on strategic alliances and R&D supports long-term growth.
Q4FY26 Revenue by Segment
Latest issuer-disclosed distribution across 2 reported categories.
MHE Division Growth
Sustained strong growth trajectory in Q4 FY26 (revenue up 36.8% YoY) and FY26 (up 38.1% YoY, ex-arbitration income).
Domestic Market Demand
Healthy demand across domestic power, steel, cement, and MHE industries.
Strategic Alliances & R&D
Growth strategy focused on forging strategic alliances with global partners and continued investments in R&D and innovation.
Custom-Engineered Solutions
Ability to deliver custom-engineered solutions with optimized lead times for diverse customer base.
New Solar/Wind Capacity
Additional 7 MW (4 MW solar, 3 MW wind) is under commissioning.
Domestic Investment Activity
Sustained investment activity in key sectors such as power, steel, and cement in India is expected to drive growth.
Overseas Market Recovery
Beginning to see early signs of recovery and improving traction in overseas markets.
Strong Open Order Book
Open order book of Rs 1,292 crores provides good visibility for the coming year.
Global Macroeconomic Challenges
Revenue and margins for Q4 FY26 impacted by lower contributions from Gear division due to extended dispatch schedules and customer deferments amid ongoing global macroeconomic challenges.
Geopolitical Uncertainties
Overseas business remained flat during the quarter despite geopolitical headwinds throughout the year.
Order Inflow Delays
Gear Division revenue impacted by delays in order inflows.
Customer Delivery Deferments
Deferment of deliveries by customers amid ongoing global macroeconomic challenges.
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.
Q4 YoY comparison is crucial to assess the immediate impact of global macroeconomic challenges on the Gear division and the strong growth trajectory of the MHE division. FY26 YoY provides the annual performance trend. QoQ shows sequential recovery in some metrics.
Open Order Book
Rs 1,292 crores as of March 31, 2026, up 36% YoY.
Order Intake (Q4FY26)
Rs 657 crores, up 2% YoY.
Gear Division Revenue (Q4FY26)
Rs 472 crores, down 21% YoY.
MHE Division Revenue (Q4FY26)
Rs 274 crores, up 36.8% YoY.
Focus on Overseas Expansion
Remain focused on expanding overseas business across multiple geographies despite near-term global challenges.
MHE Segment Momentum
Expect MHE segment to maintain steady momentum going forward with focus on product supply and aftermarket services.
Gear Division Recovery
Healthy open order book provides confidence in a growth recovery for the Gear division in the coming year.
Outperform Industry Trends
Initiatives position Elecon to outperform industry trends, expand domestic and global presence, and deliver sustainable, profitable growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Gear Division Revenue Growth | Q4FY26: -21.0% YoY | Sequential and YoY recovery in revenue and order inflows. |
| MHE Division Revenue Growth | Q4FY26: +36.8% YoY | Sustained strong growth trajectory and international order inflows. |
| Consolidated EBITDA Margin | Q4FY26: 21.2% | Observe stabilization and improvement from current levels, impacted by product mix and costs. |
| Open Order Book | Rs 1,292 crores | Track conversion rates and continued healthy order inflow outlook. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +15.7% / mo
Technical chart
ELECONweekly · 1Y-20.4%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 57.
- SMA20 rising (~13.6% over last month) — short-term momentum positive.
- RSI(14) at 57 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 22% off 52W high · 51% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
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 -6.1%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 8/20; 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
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 79th percentile of the scored universe and 63rd percentile within Auto. Main check: results consistency is weak at 39/100.
High Trust Lite: Promoter holding is 59.3%. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Auto: 63rd pctile, median 71 · Large: 58th pctile, median 74
109 documents indexed, 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 1.1%.
- ▸12 years of positive FCF.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -5.8%.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 33.10
- P/B
- 5.06
- EV/EBITDA
- 19.09
- Market Cap
- 11696.00Cr
Profitability
- ROE
- 16.40%
- ROCE
- 20.90%
- ROA
- 10.54%
- Dividend Y
- 0.38%
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
- 20.92×
- Altman Z
- 8.51
- Book Value
- 103.00
Cash Flow
- FCF Yield
- 1.13%
- FCF Positive Y
- 12/5
- OCF
- 314.00 Cr
- EPS TTM
- 15.20
Shareholding
- Promoter Hold
- 59.28%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 48%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Auto — 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.