Elecon Engineering Company Ltd experienced a significant 60% year-on-year decrease in its consolidated net profit for the first quarter of FY27 due to margin pressures. The company’s consolidated net profit dropped to Rs 70.4 crore in the April-June quarter from Rs 175 crore in the same period last year. On a standalone basis, the net profit also declined by 75.5% year-on-year to Rs 58.57 crore compared to Rs 238.92 crore in the previous year.
Revenue from operations, however, saw a 6.11% year-on-year increase to Rs 521 crore, up from Rs 491 crore in the corresponding quarter of the previous financial year. Despite the rise in revenue, the earnings before interest, tax, depreciation, and amortization (EBITDA) at the operating level decreased by 16.3% to Rs 109 crore from Rs 130 crore a year earlier.
Total income for the April-June quarter rose by 4.9% year-on-year to Rs 542.47 crore from Rs 517 crore in the same period last year. The EBITDA margin also contracted to 21% in the reporting quarter from 26.6% in the corresponding quarter of the previous year, indicating increased operating cost pressures despite revenue growth.
Shares of Elecon Engineering fell nearly 6% to an intraday low of Rs 482.30 on the BSE following the earnings announcement. The stock’s 52-week high and low were recorded at Rs 682.90 and Rs 352, respectively, with a year-to-date gain of about 6%. Over the past 12 months, the stock has declined by more than 20%.
Furthermore, the company’s Board of Directors proposed a final dividend of Rs 1.50 per equity share of face value Re 1 each.
