Elecon Engineering Share Price Analyzed

Elecon Engineering’s stock price dropped significantly on Monday, falling over 4%. It closed at ₹528.75, down from ₹551.75 the previous day. This drop comes after the company released its financial results for the second part of the year 2025 (Q2FY26). Investors are paying close attention to how the company is performing.

Key Points

• Stock price fell 4.2% to ₹528.75 on the NSE.
• Overall revenue increased by 14.8% compared to last year.
• Profit after tax remained steady at ₹87.72 crore.
• Order bookings jumped 28% year-over-year to ₹688 crore.
• Analysts predict strong growth with a ‘Buy’ rating.
• Target price set at ₹750, offering a 36% potential gain.

The company reported impressive revenue, reaching ₹596.45 crore – that’s up 14.8% compared to the same time last year. This shows the business is growing, which is good news for investors.

Despite the increased revenue, the company’s profit remained constant at ₹87.72 crore. This happened because of a few factors, including new investments in equipment and a change in tax rates.

However, the company did secure a lot of new orders – a significant jump of 28% compared to the previous year. These orders totaled ₹688 crore, suggesting continued demand for Elecon’s products.

The company also decided to pay an interim dividend of ₹0.5 per share. This means shareholders will receive a small payment, but it’s usually paid in stages.

Emkay Global, a financial services company, analyzed the results. They noted that the revenue was in line with expectations, but the profit margin was a little lower than predicted. They still have a positive view of the company.

Emkay Global’s analysts are optimistic about Elecon’s future, believing the company will generate ₹2,650 crore in revenue by the end of the financial year 2025-26 (FY26). They’re expecting a strong recovery in industries like mining and construction, which rely on Elecon’s gear systems.

Furthermore, they anticipate increased exports, particularly to Europe, the Middle East, and other key regions. This global growth will contribute to the company’s success.

Emkay Global projects a significant growth rate for Elecon over the next few years, expecting revenue and profit to grow by 21% and 24% respectively.

“Elecon Engineering is well-positioned to benefit from India’s growing industrial sector and international opportunities.”