Shanthi Gears Ltd is in the business of design, manufacture, supply and servicing of gears and gear boxes. Presenting below are its Q2 FY26 earnings results.
Q2 FY26 Earnings Results
Revenue from Operations: ₹132 crore, down 15% YoY from ₹154.54 crore in Q2 FY25.
EBITDA: ₹26.50 crore, down 22.3% YoY from ₹34.10 crore.
EBITDA Margin: 20.1%, down 193 bps YoY.
Profit Before Tax (PBT): ₹28.67 crore, down 16.5% YoY from ₹34.34 crore.
Profit After Tax (PAT): ₹21.50 crore, down 16% YoY from ₹25.60 crore.
Return on Average Invested Capital (ROIC): 46%.
Free Cash Flow: ₹12.68 crore.
Order Book: Orders worth ₹138 crore booked during the quarter (up 7% QoQ).
Unexecuted Order Book: ₹254 crore as on September 30, 2025.
Management Commentary & Strategic Highlights
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Shanthi Gears faced challenging market conditions with weak demand in several end-user segments including steel, cement, power, mining, and transportation.
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Despite the revenue and profit dip, the company maintained strong operational efficiency as indicated by a robust ROIC of 46%.
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Management continues to prioritize revenue growth, profitability, return on capital, and free cash flow generation fundamentals.
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The company generated healthy free cash flow of ₹12.68 crore, reflecting ongoing discipline in working capital management.
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Shanthi Gears is focusing on strengthening its order book and backlog to provide revenue visibility while navigating near-term market volatility.
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The company also approved the reclassification from two promoter group entities holding no shares, reflecting corporate governance measures.
Q1 FY26 Earnings Results
Revenue from Operations: ₹134.89 crore, down slightly from ₹138.82 crore in Q1 FY25.
Profit Before Tax (PBT): ₹30.62 crore, up 6% YoY.
Profit After Tax (PAT): ₹23 crore, up 5% YoY.
Return on Average Invested Capital (ROIC): 49%.
Free Cash Flow: ₹26.1 crore, up 24% YoY.
Order Book: ₹145 crore booked during Q1; unexecuted order book was ₹249 crore as of June 30, 2025.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.