Elecon Engineering Net Profit Drops 96% in Q4; Full-Year Profit Upbeat 

 Vallabh Vidyanagar, April 15: Elecon Engineering’s consolidated net profit after tax (PAT) for the quarter ended March 2026 (Q4FY26) crashed 95.9 per cent year-on-year to ₹6 crore from ₹146.48 crore in Q4FY25 on account of an exceptional impairment loss of ₹101.77 crore on account of Goodwill.

Quarterly consolidated revenues from operations stood at ₹745.61 crore, down 6.5 per cent from ₹797.57 crore from ₹797.57 crore in Q4FY25 due to subdued order inflows, delayed dispatch schedules and customer postponements suffered by the Transmission Equipment business, which is facing pressures from ongoing global macroeconomic uncertainty.

Consolidated total income was ₹763.18 crore against ₹816.16 crore while total expenses increased to ₹621.02 crore from ₹626.60 crore due to higher employee benefit costs incurred on account of implementation of four new Labour Codes by government and negative product mix. “Exceptional item: Impairment loss on Goodwill ₹101.77 crore” is a non-cash, one-time charge. The Impairment was booked after internal evaluations revealed that the Goodwill did not have any identifiable cash flows attributable to it. Consequently, consolidated profit before tax (PBT) for Q4FY26 reduced to ₹40.39 crore.

Consolidated FY26 Revenues See Gains

Yearly, however, Elecon showed much better performance. Consolidated revenue from operations increased 6.2 per cent to ₹2,366.05 crore from ₹2,226.96 crore and total consolidated income rose to ₹2,447.22 crore from ₹2,281.77 crore.

Consolidated PAT for the fiscal grew to ₹341.15 crore from ₹415.10 crore in FY25, a contraction of 17.8 per cent on account of absence of the goodwill impairment in the year-ago quarter and the presence of an exceptional income of ₹80.47 crore on account of Reclassification of Investments of Eimco Elecon (India) Ltd as financial asset in FY26.

Dividend Proportion

For FY26, the Board proposed a final dividend of ₹1.50 per equity share, which will be paid along with the interim dividend of ₹0.50 already declared in November 2025.

Share Price Movement

Shares of Elecon opened higher and reached a high of ₹431.75 and a low of ₹400.80 on Wednesday. The stock ended its Wednesday session at ₹418.00 on BSE, up ₹3.40 or 0.82% from the previous closing price of ₹414.60. Investors appear to have taken the company’s Q4FY26 results in their stride. Over the last month, the stock has rallied 10.74% or ₹40.35 from its lows around the ₹375 mark.

Source:  https://www.bseindia.com/corporates/anndet_new.aspx?newsid=6070774d-d4c1-41eb-b093-c3fb660c98f2&flag=D&type=A&scrip_CD=505700