Multibagger Elecon Engineering share price tanks 16% to 9-month low after 33% drop in Q3 net profit

Shares of Elecon Engineering, one of the largest Industrial Gear solution providers, plummeted 16% in intraday trade on Friday, January 09, falling to a nine-month low of ₹422 per share, following the company’s December quarter results, which were released after market hours on Thursday.

The company reported a net profit of ₹72 crore in Q3FY26, marking a 33% decline from ₹108 crore reported in the same period last year. It posted a modest 4.3% year-on-year improvement in consolidated revenue from operations to ₹552 crore, which was impacted by delays in order inflows in its gear division.

Revenue from the gear segment remained flat at ₹429 crore, as a slowdown in orders affected execution and led to deferred dispatch and delivery schedules by customers.

However, the company in its earnings filing said that healthy open orders and encouraging inquiry levels provide good visibility and confidence for revenue improvement and margin recovery going forward.

Revenue from the MHE division improved by 16.3% to ₹123 crore. “The division continues to secure new orders consistently in the domestic market and expects order inflows from international markets going forward. A healthy open order book and strong inquiry pipeline provide confidence for improved performance ahead,” the company said in its earnings filing.

Following the soft performance in the December quarter, the company now expects FY26 revenue guidance to be impacted by up to 5%, while adjusted EBITDA margins may be lower by up to 2%.

Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Company Ltd., said that for Q3FY26, Elecon reported consolidated revenue of ₹552 crore, reflecting year-on-year growth of 4.3%. EBITDA for the quarter stood at ₹109 crore, with an EBITDA margin of 19.8%, while profit after tax (PAT) was ₹72 crore, resulting in PAT margins of 13.0%.

"Order intake for the quarter was ₹701 crore, and the order book as of December 31, 2025, stood at ₹1,372 crore. He added that the strong order book, combined with a healthy order inflow outlook across both domestic and overseas markets, provides good visibility and confidence going forward," he further added.

Elecon Engineering share price trend

The company’s shares have been facing a challenging period in the Indian stock market, having lost around 40% of their value from the July 2025 highs of ₹716 apiece. From the all-time high of ₹739, the stock is down about 42%.

The stock closed CY25 with a decline of 24%, marking its first annual drop in five years. While the near-term trend appears weak, its long-term performance remains solid, as the stock is still up nearly 140% over the past three years and about 1,630% over the last five years.

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