Other income fell 5.49% to Rs 17.57 crore.  PBIDT fell 17.92% to Rs 175.59 crore.  Provision for interest rose 22.55% to Rs 6.25 crore.   PBDT fell 18.91% to Rs 169.34 crore.  Provision for depreciation rose 41.12% to Rs 27.18 crore.   

Profit before tax down 25.01% to Rs 142.16 crore.  

EO Expense was Rs 101.77 crore against nil in corresponding previous quarter. Thus PBT was down by 79% to Rs 40.39 crore.

Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 34.39 crore, compared to Rs 45.56 crore.  Effective tax rate was 85.14% compared to 23.72%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 95.90% to Rs 6.00 crore.  

• Sales of Material Handling Equipment segment has gone up 37.24% to Rs 292.41 crore (accounting for 38.26% of total sales).  Sales of Transmission Equipment segment has gone down 21.02% to Rs 471.90 crore (accounting for 61.74% of total sales).  evenue and margins for Q4 FY26 were impacted by lower contributions from the Gear division, primarily due to extended dispatch schedules and the deferment of deliveries by customers amid ongoing global macroeconomic challenges.
• Profit before interest, tax and other unallocable items (PBIT) has slumped 22.93% to Rs 164.40 crore.  PBIT of Material Handling Equipment segment rose 10.83% to Rs 73.29 crore (accounting for 44.58% of total PBIT).  PBIT of Transmission Equipment segment fell 38.10% to Rs 91.11 crore (accounting for 55.42% of total PBIT).  
• PBIT margin of Material Handling Equipment segment fell from 31.04% to 25.06%.  PBIT margin of Transmission Equipment segment fell from 24.63% to 19.31%.  Overall PBIT margin fell from 26.32% to 21.51%.  EBIT Margin of gears was also impacted due to lower revenue, increase in employee costs and change in product mix.

Eimco Eiecon (India) Limited has ceased to be an Associate effective 23rd April, 2025 and hence has been reclassified as financial asset which will be fair valued at each reporting date in accordance with Ind AS 109. Accordingly, unrealised mark to market gain of INR 8,047 lakhs (net of tax) till the date of termination has been credited to Statement of Profit & Loss and considered as an exceptional item. Unrealised loss of INR 1,396 lakhs (net of tax) for the quarter ended on 31st March, 2026 and Unrealised loss of INR 3,392 lakhs (net of tax) from the date of termination till the year ended on 31 st March, 2026 has been Included In Other Comprehensive Income in accordance with one time irrevocable option available under Ind AS. 

The Holding Company carried out an impairment analysis and assessed that the Goodwill does not have a specifically attributable cash flows. Accordingly, the carrying amount of Rs  1O,177 Lakhs of Goodwill has been recognised as impairment loss and has been recognized in the Consolidated Statement of Profit and Loss under Exceptional items` during the quarter and year ended 31st March, 2026. 9 The Government of India has notified the implementation of four new Labour Codes effective 21st November, 2025, by consolidating and rationalizing 29 existing labour laws. The Holding Company has estimated the financial implications thereof and has taken additional charge of Rs 36 lakhs in the financial results for the quarter ended 31st March. 2026. The total amount towards this additional charge is Rs 312 lakhs for the year ended on 31st March, 2026.

 

Full year results analysis.

Net sales (including other operating income) of Elecon Engineering Company has increased 6.25% to Rs 2366.05 crore.  Sales of Material Handling Equipment segment has gone up 44.38% to Rs 712.50 crore (accounting for 29.54% of total sales).  Sales of Transmission Equipment segment has gone down 3.59% to Rs 1,699.36 crore (accounting for 70.46% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 8.15% to Rs 527.85 crore.  PBIT of Material Handling Equipment segment rose 44.12% to Rs 208.81 crore (accounting for 39.56% of total PBIT).  PBIT of Transmission Equipment segment fell 25.77% to Rs 319.04 crore (accounting for 60.44% of total PBIT).  

PBIT margin of Material Handling Equipment segment fell from 29.36% to 29.31%.  PBIT margin of Transmission Equipment segment fell from 24.38% to 18.77%.  Overall PBIT margin fell from 25.47% to 21.89%.  

Operating profit margin has declined from 24.36% to 22.11%, leading to 3.58% decline in operating profit to Rs 523.14 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 45.88% to 48.61%.   Employee cost increased from 9.42% to 9.99%.   Other expenses fell from 20.19% to 19.73%.   Other direct service cost rose from 7.16% to 7.37%.   

Other income rose 35.17% to Rs 81.17 crore.  PBIDT rose 0.28% to Rs 604.31 crore.  Provision for interest rose 91.03% to Rs 24.91 crore.  Loan funds rose to Rs 272.65 crore as of 31 March 2026 from Rs 181.23 crore as of 31 March 2025.  Inventories rose to Rs 301.15 crore as of 31 March 2026 from Rs 242.96 crore as of 31 March 2025.  Sundry debtors were higher at Rs 720.51 crore as of 31 March 2026 compared to Rs 613.87 crore as of 31 March 2025.  Cash and bank balance declined from Rs 358.44 crore as of 31 March 2025 to Rs 212.64 crore as of 31 March 2026.  Investments rose to Rs 742.75 crore as of 31 March 2026 from Rs 495.80 crore as of 31 March 2025 .  

PBDT fell 1.73% to Rs 579.4 crore.  Provision for depreciation rose 71.56% to Rs 104.24 crore.  Fixed assets increased to Rs 925.58 crore as of 31 March 2026 from Rs 818.85 crore as of 31 March 2025.  Intangible assets declined from Rs 101.77 crore to Rs 27.17 crore.  

Profit before tax down 10.15% to Rs 475.16 crore.  Share of profit/loss was 92.50% lower at Rs 0.61 crore.  Provision for tax was expense of Rs 113.32 crore, compared to Rs 121.87 crore.  Effective tax rate was 24.93% compared to 22.70%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 17.81% to Rs 341.15 crore.  

Equity capital stood at Rs 22.44 crore as of 31 March 2026 to Rs 22.44 crore as of 31 March 2025.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 59.27% as of 31 March 2026 ,compared to 59.27% as of 31 March 2025 .  

Cash flow from operating activities decreased to Rs 314.22 crore for year ended March 2026 from Rs 432.30 crore for year ended March 2025.  Cash flow used in acquiring fixed assets during the year ended March 2026 stood at Rs 119.52 crore, compared to Rs 66.00 crore during the year ended March 2025.