Elecon Engineering Company Limited, incorporated in 1960, manufactures and sells power transmission and material handling equipment in India and internationally. In addition, it engages in the steel and non-ferrous foundry business. The company is one of the largest manufacturers of industrial gears and material handling equipment with seven decades of experience and expertise in Asia.
Elecon Engineering Company Limited is an India-based company that is engaged in the designing and manufacturing of material handling equipment and industrial gear and is also involved in providing erection and commissioning solutions for its products. The Company's operating segments are material handling equipment and transmission equipment. Its Material handling equipment segment is engaged in manufacturing material handling equipment's like raw material handling systems, stackers, reclaimers, bagging & weighing machines, wagon & truck loaders, crushers, wagon tipplers, feeders, and port equipment.
The company operates through two primary divisions that contribute significantly to its revenue stream. The Gear Division represents 72% of 9M FY25 revenue, where Elecon is one of Asia's largest Industrial Gear Manufacturers. The product portfolio includes Industrial gears, customized gearboxes (including for Indian Navy/defense), Worm gears, helical gears, and planetary gears.
The company operates in two segments, Material Handling Equipment and Transmission Equipment. It provides helical and bevel helical, planetary, worm, high speed, wind turbine, marine, and custom-built gear boxes; customized gear boxes; loose gears; vertical roller mill drives; elign geared, elflex flexible, fluid, scoop controlled variable speed controlled fluid, and torsion shaft couplings; and elevator traction machines.
The company also provides material handling equipment, such as raw material handling systems, stackers, scrapers/reclaimers, bagging and weighing machines, wagon and truck loaders, crushers, wagon tipplers and associated equipment, feeders, idlers and pulleys, magnates/weighers/detectors, port equipment, and cable reeling drums; and alternate energy products. In addition, it engages in the ferrous and non-ferrous foundry business.
The company's performance solidifies its status as the leading domestic player with approximately 39% market share in the industrial gear segment. It serves cement, sugar, defense, steel, mining, power, plastic, material handling, chemical, palm oil, crane, paper, rubber, marine, and fertilizer industries, as well as windmills and ports.
The company has a market capitalization of ₹14,496 Crore as of recent data, with current market cap standing at ₹14,493 Crore. The stock is trading at 7.24 times its book value with a Stock P/E of 35.0, Book Value of ₹89.1, and Dividend Yield of 0.31%.
Elecon Engineering has registered 17% rise in consolidated net profit to ₹415 Crore on a 15% increase in revenue to ₹2,227 Crore in FY25 as compared with FY24. For FY25, the consolidated revenue stood at ₹2,227 Crore, clocking 14.9% YoY growth, in line with the annual guidance of ₹2,225 Crore. The annual EBITDA stood at ₹543 Crore, with EBITDA margin at 24.4%. PAT for FY25 was ₹415 Crore, with PAT margin at 18.6%.
The company reported a strong financial performance for the quarter ended March 31, 2025 (Q4 FY25), with consolidated net profit rising 41% year-on-year to ₹146.48 Crore, compared to ₹103.65 Crore in Q4 FY24. Revenue from operations came in at ₹797.57 Crore, reflecting a sharp 41% YoY growth from ₹564.62 Crore in the corresponding quarter last year.
- ROCE: 28.5%
- ROE: 23.0%
- Promoter Holding: 59.3%
- Company is almost debt free
For the Gear division, revenue for Q4 FY25 stood at ₹597 Crore as compared to ₹464 Crore in Q4 FY24, growth of 29% YoY. Revenue from Gear division witnessed a considerable rebound on account of increased demand from domestic Steel, Cement & Power industry.
The MHE division's revenue for the quarter stood at ₹200 Crore, up 98% YoY. In Q4 FY25, the Material Handling Equipment (MHE) division saw a remarkable 98.2% year-on-year revenue growth.
The company is strategically enhancing its international market presence, targeting a 50% contribution to consolidated revenues by FY '30, driven by robust R&D and product innovation. The company is steadily advancing towards its strategic objective of generating 50% of consolidated revenue from international markets by FY30.
Despite facing challenges from domestic election-related softness and global macroeconomic uncertainties, it reported record revenue and EBITDA, with strong growth in the gear and Material Handling Equipment divisions. Operational efficiency is underscored by a stable EBITDA margin and a significant net free cash surplus, allowing for continued investment in capacity and resources. While navigating geopolitical challenges, the company remains optimistic about future growth, particularly in the OEM sector, supported by a healthy order book and a disciplined approach to capital expenditures.
Elecon's ₹400 Crore bank facilities credit rating reaffirmed at [ICRA]AA (Stable)/A1+ on July 3, 2025. The company's auditor is C N K & Associates LLP, with Prayasvin B Patel as chairman and Bharti Isarani as the company secretary.
The company's board has declared an interim dividend of Re 0.50 per share for FY25. The record date for the dividend shall be Monday, October 28, 2024. The said dividend will be paid on or after Tuesday, November 12, 2024.
Elecon Engineering Company continues to strengthen its position as a leading industrial solutions provider in Asia, with strong financial performance, strategic international expansion plans, and robust operational capabilities across its core business segments.
