Eimco Elecon(I) Q2 FY27 Results (NSE: EIMCOELECO)
Signal: Margin expansion
The read
The key inflection is the 70.9% YoY revenue surge to 5679.72 lakh and 108.8% EBITDA growth to ₹11 crore, supported by order-book execution and better capacity utilisation, but Q2 EBITDA margin at 18.8% was 960bps below Q1 and gross margin compressed 1,187bps YoY, making sustained conversion of the ₹133 crore order book the central trajectory test.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹56.8 Cr | +70.9% | -26.7% |
| Net profit | ₹7.83 Cr | +46.5% | |
| EPS | ₹13.58 | +46.3% | |
| EBIT margin | 18.8% |
P&L walk
Standalone Q2 revenue increased 70.9% YoY to 5679.72 lakh on order-book execution, while gross margin compressed to 59.9% from 71.7% and EBITDA margin improved YoY to 18.8% but fell sequentially from 28.4%; PAT rose 46.5% to 783.24 lakh with other income at 189.06 lakh.
Key positives
- Revenue increased 70.9% YoY to 5679.72 lakh, with management attributing growth to robust order-book execution and healthy order inflows.
- EBITDA rose 108.8% YoY to ₹11 crore and EBITDA margin expanded 270bps YoY to 18.8%, supported by higher revenue, better capacity utilisation and disciplined cost management.
- The open order pipeline stood at ₹133 crore, providing visibility against Q2 revenue of ₹57 crore as presented in the press release.
- Employee benefits expense fell 6.8% YoY to 554.28 lakh while revenue grew 70.9%, reducing employee-cost intensity to 9.8% from 17.9%.
Key concerns
- Q2 EBITDA margin of 18.8% was 960bps below Q1's 28.4%, showing a sharp sequential reset despite strong revenue growth.
- Gross margin compressed 1,187bps YoY to 59.9%, while the filing does not disclose the specific input-cost or mix driver.
- H1 operating cash flow of 713.83 lakh was substantially below H1 PAT of 2321.09 lakh, indicating weak cash conversion relative to reported earnings.
- Property, plant and equipment rose to 11154.88 lakh from 6410.76 lakh while depreciation declined 15.1% YoY in Q2, requiring monitoring of asset commissioning and depreciation recognition.
- The CFO will resign effective 30 October 2026 to pursue another opportunity, creating a finance-function transition point.
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