Company Overview:
Eimco Elecon (India) Limited, incorporated in 1974 and based in Vallabh Vidyanagar, Gujarat, is a leading manufacturer and marketer of equipment for underground and opencast mining. The company introduced several intermediate mining technologies like Side Dump Loaders, Load Haul Dumpers, and Rocker Shovel Loaders in India. Presenting below its Q2 FY26 Earnings Results.
Financial Highlights for Q2 FY26 Earnings:
- Revenue declined slightly to ₹68.00 crore, down 3.1% year-on-year from ₹70.00 crore.
- EBITDA fell 18.3% to ₹12.00 crore due to increased costs, resulting in margin contraction.
- Consolidated Net Profit (PAT) was ₹14.00 crore, down 2.0% from ₹15.00 crore in Q1 FY25.
- Despite the decline, PAT margin improved marginally by 20 basis points, reflecting operational prudence.
Performance Insights:
- The company faced headwinds mainly due to geopolitical challenges and weaker overseas markets but saw good domestic demand from power, steel, and cement sectors.
- Order book shrank significantly year-on-year, which may affect near-term growth visibility.
- Operational focus remains on expanding aftermarket business, OEM segments, and capacity ramp-up to support medium-term growth.
Outlook:
Eimco Elecon is focused on leveraging its strong cash position and planned capital expenditure to normalize margins and sustain steady EBITDA in the coming years. The company aims to benefit from improved domestic demand and ramp up of product lines while managing challenges in international markets.
Explore the company’s past earnings and latest concall transcripts, click here to visit the AlphaStreet India News Channel.