Mumbai, July 11 (IANS) Gujarat-based manufacturers of industrial gears and material handling equipment Elecon Engineering Company Limited on Friday reported a 38.5 per cent decline in its revenue from operations on quarter-on-quarter (QoQ) basis.

The company’s revenue from operations stood at Rs 490.57 crore in Q1 FY26, down from Rs 797.57 crore in Q4 FY25, according to its stock exchange filing.

Similarly, the company’s total income also dropped by nearly 36.66 per cent, falling from Rs 816.16 crore in the previous quarter to Rs 517 crore in Q1.

However, Elecon’s net profit saw an increase. The company posted a net profit of Rs 175.44 crore in Q1, up 19.77 per cent from Rs 146.48 crore in Q4 FY25.

This rise in profit was driven mainly by exceptional gains, including Rs 80 crore from reclassification of investment in EIMCO Elecon (India) Limited and Rs 35 crore received from an arbitration settlement.

The company’s total expenses also declined during the quarter. In Q1 FY26, expenses stood at Rs 390.96 crore, down by around 37.61 per cent from Rs 626.60 crore in Q4 FY25.

A major contributor to this was a 40.45 per cent fall in the cost of materials consumed, which dropped to Rs 206.02 crore from Rs 346.01 crore.

However, depreciation and amortisation expenses went up significantly by 27.42 per cent, rising to Rs 24.54 crore from Rs 19.26 crore in the previous quarter, the company said in its filing.

Chairman and Managing Director Prayasvin B. Patel said that the EBITDA stood at Rs 130 crore with a margin of 26.6 per cent.

He added that Elecon continues to hold a leading position in industrial gear solutions and material handling equipment, with its competitive edge driven by advanced manufacturing and custom-engineered solutions.

“The company’s material handling equipment (MHE) division showed strong performance, supported in part by the arbitration settlement income,” Patel mentioned.

Meanwhile, the gear division grew by 6.1 per cent, although margins were impacted by depreciation related to new assets.

“The company expects continued growth, driven by strong activity in core sectors like steel, power, and cement, along with consistent overseas demand,” he added.

Founded in 1951, Elecon is a manufacturer of industrial gears and material handling equipment, serving more than 95 countries.

–IANS

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