Elecon revenue grew about 11% year on year in the second quarter of FY27, supported by overseas demand for gears and the execution of delayed material-handling projects. The update, published on October 21, 2026, also outlined management’s expectation of around 15% consolidated revenue growth in the second half of FY27.
Key Takeaways
- Both divisions increased revenue, with the larger Gear business supported by strong overseas demand.
- The order book grew 33% to ₹1,640 crore, while order intake increased about 8% to ₹750 crore.
- Management expects stronger execution after Diwali, but material-handling margins remain under pressure.
Table of Contents
- Elecon revenue growth reflects two different drivers
- Project approvals matter for material-handling execution
- Second-half outlook depends on improved execution
- Conclusion
Elecon revenue growth reflects two different drivers
The Gear division remained the main contributor to sales. Its growth was backed by strong overseas demand, while price increases, a better product mix and higher-margin export orders helped improve profitability.
The Material Handling Equipment division, or MHE, benefited from executing two projects delayed from the first quarter of FY27 and from faster customer approvals. That recovery helped revenue, although the division’s margins remained under pressure.
| Item | Details |
|---|---|
| Gear share of Q2 FY27 revenue | Around 76% |
| Gear revenue growth | About 11% year on year |
| MHE share of Q2 FY27 revenue | Around 24% |
| MHE revenue growth | About 10% year on year |
Project approvals matter for material-handling execution
Elecon’s material-handling equipment portfolio includes conveyors, stackers, reclaimers, feeders and crushers. This business supplies equipment and integrated systems used to move and process bulk materials across industrial facilities.
The completion of delayed projects makes the timing of customer approvals important when assessing MHE’s quarterly performance. The second-quarter revenue recovery did not mean that margin pressure had also been resolved.
Second-half outlook depends on improved execution
Management expects execution to improve after Diwali as project clearances pick up. Its outlook calls for around 15% consolidated revenue growth in H2 FY27, alongside EBITDA margins at least at FY26 levels.
That growth expectation is above the roughly 11% achieved in the second quarter, but it remains guidance rather than a completed result. The larger order book provides work to execute; the timing of clearances and delivery will determine when that work becomes revenue.
Conclusion
The next operating milestone is the post-Diwali improvement in project execution anticipated by management. Progress on clearances and MHE margins will help show whether Elecon can deliver its stronger second-half growth outlook.
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