Below is a structured extraction and summary of the relevant and actionable financial information from the submitted results filing of Eimco Elecon (India) Limited dated 9th October 2025.
1. Auditor’s Note
- The Statutory Auditors, K C Mehta & Co LLP, have issued a Limited Review Report on the unaudited financial results for the quarter and half year ended 30th September 2025.
- The auditor’s conclusion is unmodified (clean), with no qualifications, concerns, or issues noted.
- The review was conducted as per applicable Indian standards and SEBI regulations.
Conclusion: No auditor qualifications or concerns.
2. Financial Performance
Periods Covered:
- Latest Quarter: Q2 FY26 (Quarter ended 30th September 2025)
- Immediately Preceding Quarter: Q1 FY26 (Quarter ended 30th June 2025)
- Same Quarter Previous Year: Q2 FY25 (Quarter ended 30th September 2024)
- Half Year Ended 30th September 2025 (H1 FY26)
- Half Year Ended 30th September 2024 (H1 FY25)
- Full Financial Year Ended 31st March 2025 (FY25)
Key Financials (Rs. in Lakhs)
| Particulars | Q2 FY26 (30.09.25) | Q1 FY26 (30.06.25) | Q2 FY25 (30.09.24) | H1 FY26 (30.09.25) | H1 FY25 (30.09.24) | FY25 (31.03.25) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 3,323.64 | 6,756.99 | 6,662.69 | 10,080.63 | 13,634.70 | 24,647.25 |
| Other Income | 427.22 | 809.17 | 611.76 | 1,236.39 | 1,139.21 | 1,832.56 |
| Total Income | 3,750.86 | 7,566.16 | 7,274.45 | 11,317.02 | 14,773.91 | 26,479.81 |
| Total Expenses | 3,061.64 | 5,724.85 | 5,353.21 | 8,786.49 | 11,016.30 | 19,919.75 |
| Profit Before Tax (PBT) | 689.22 | 1,841.31 | 1,921.24 | 2,530.53 | 3,757.61 | 6,560.06 |
| Tax Expense (Total) | 154.10 | 393.05 | 615.09 | 547.15 | 973.24 | 1,669.38 |
| Net Profit After Tax (PAT) | 535.12 | 1,448.26 | 1,306.15 | 1,983.38 | 2,784.37 | 4,890.68 |
| Basic & Diluted EPS (Rs.) | 9.28 | 25.11 | 22.64 | 34.38 | 48.27 | 84.78 |
Margins and Observations:
- Revenue from Operations dropped sharply in Q2 FY26 (3,323.64 lakhs) compared to Q1 FY26 (6,756.99 lakhs) and Q2 FY25 (6,662.69 lakhs).
- Net Profit also declined significantly in Q2 FY26 (535.12 lakhs) vs Q1 FY26 (1,448.26 lakhs) and Q2 FY25 (1,306.15 lakhs).
- Half Year FY26 revenue and profit are also down compared to H1 FY25.
- The company’s EBITDA is not explicitly stated but can be approximated by subtracting cost of materials, purchase of stock, manufacturing expenses, employee benefits, and other expenses from total income.
- The profit before tax margin for Q2 FY26 is approximately 18.4% (689.22 / 3,750.86).
- The net profit margin for Q2 FY26 is approximately 14.3% (535.12 / 3,750.86).
3. Detailed Notes / Management Commentary
- The results are unaudited but reviewed by statutory auditors with an unmodified opinion.
- The company has only one reportable business segment: Machinery and Spares.
- No subsidiaries, associates, or joint ventures as of 30th September 2025.
- No changes in accounting policies or material adjustments reported.
- The company is undertaking amendments to its Memorandum of Association (MOA) to align with the Companies Act, 2013, including expansion of business activities into:
- Construction machinery and equipment.
- Defence platforms and technologies.
- Pharmaceuticals and medical/diagnostic equipment.
- The company has approved a reclassification of Tamrock Great Britain Holdings Limited from Promoter Group to Public category as Tamrock holds zero shares now.
- Retirement of a senior managerial personnel, Mr. Mukulnarayan Dwivedi, effective 10th October 2025.
- No mention of NPAs, slippages, or financial services-specific metrics as this is a manufacturing company.
4. Segment Information
- The company operates in a single business segment: Machinery and Spares.
- No geographical or product segment breakdown provided.
- No subsidiaries or joint ventures.
5. Capex, Projects, and Corporate Activity
- Capital Expenditure:
- Property, Plant & Equipment increased from Rs. 5,696.07 lakhs (31.03.25) to Rs. 5,857.26 lakhs (30.09.25).
- Capital Work-in-Progress increased from Rs. 129.04 lakhs to Rs. 333.50 lakhs, indicating ongoing capex projects.
- Cash flow statement shows payments for purchase of PPE and CWIP of Rs. 572.17 lakhs in H1 FY26 vs Rs. 305.87 lakhs in H1 FY25.
- Investments:
- Non-current investments increased from Rs. 19,169.81 lakhs to Rs. 21,628.72 lakhs.
- Current investments decreased from Rs. 3,430.80 lakhs to Rs. 1,963.20 lakhs.
- Disposals / Writebacks:
- Gain on sale/fair valuation of investments: Rs. 949.42 lakhs (H1 FY26), higher than previous year.
- Corporate Activity:
- Reclassification of promoter shareholding (Tamrock) due to sale of entire stake.
- Amendments to MOA to expand business scope.
- Retirement of senior management personnel.
- No mention of impairments, write-downs, restructuring, or cost-cutting measures.
6. Standalone vs Consolidated
- The company has no subsidiaries, associates, or joint ventures.
- Therefore, the results are effectively standalone.
- No consolidated financials provided or applicable.
7. Statement of Assets and Liabilities (as at 30th September 2025 vs 31st March 2025)
| Particulars | 30.09.25 (Unaudited) | 31.03.25 (Audited) |
|---|---|---|
| Total Assets | 49,959.84 lakhs | 48,797.76 lakhs |
| - Non-current assets | 29,147.01 lakhs | 26,429.31 lakhs |
| - Current assets | 20,812.83 lakhs | 22,368.45 lakhs |
| Total Equity | 44,889.11 lakhs | 43,194.15 lakhs |
| - Equity share capital | 576.84 lakhs | 576.84 lakhs |
| - Other equity | 44,312.27 lakhs | 42,617.31 lakhs |
| Total Liabilities | 5,070.73 lakhs | 5,603.61 lakhs |
| - Non-current liabilities | 959.95 lakhs | 769.44 lakhs |
| - Current liabilities | 4,110.78 lakhs | 4,834.17 lakhs |
Observations:
- Increase in total assets mainly due to rise in non-current assets (PPE, investments).
- Current assets decreased slightly, mainly due to reduction in trade receivables and investments.
- Increase in lease liabilities (non-current and current) indicating possible new lease contracts.
- Other equity increased by Rs. 1,694.96 lakhs reflecting retained earnings and other reserves.
8. Cash Flow Summary (H1 FY26 vs H1 FY25)
| Particulars | H1 FY26 (30.09.25) | H1 FY25 (30.09.24) |
|---|---|---|
| Net Cash from Operating Activities | Rs. 604.44 lakhs | Rs. 1,056.05 lakhs |
| Net Cash from Investing Activities | (Rs. 364.39 lakhs) | (Rs. 1,491.64 lakhs) |
| Net Cash from Financing Activities | (Rs. 327.09 lakhs) | (Rs. 335.71 lakhs) |
| Net Change in Cash & Cash Equivalents | (Rs. 87.04 lakhs) | (Rs. 771.30 lakhs) |
- Operating cash flow declined significantly compared to previous year.
- Investing cash outflow reduced, mainly due to lower net investments.
- Financing cash outflow stable, mainly dividend payments and lease liability servicing.
- Cash and cash equivalents at period end: Rs. 75.23 lakhs (up from Rs. 17.06 lakhs previous year).
Summary for Investment Analysis Team
| Aspect | Key Points / Actionables |
|---|---|
| Auditor’s Note | Clean review report, no qualifications. |
| Financial Performance | - Q2 FY26 revenue and profit sharply down vs Q1 FY26 and Q2 FY25.<br>- H1 FY26 revenue and profit also down YoY.<br>- EPS for Q2 FY26 at Rs. 9.28 vs Rs. 22.64 in Q2 FY25.<br>- Margins compressed in latest quarter. |
| Management Commentary | - No accounting policy changes.<br>- Expansion of business scope approved (construction machinery, defence, pharma).<br>- Promoter reclassification approved.<br>- Senior management retirement noted. |
| Segment Info | Single segment: Machinery and Spares. |
| Capex & Projects | - Increased PPE and CWIP indicating ongoing capex.<br>- Significant investments in financial assets.<br>- Gains on sale of investments recognized.<br>- No impairments or restructuring reported. |
| Standalone vs Consolidated | Standalone results only; no subsidiaries or associates. |
| Balance Sheet | - Asset base increased mainly due to PPE and investments.<br>- Lease liabilities increased.<br>- Equity base strengthened. |
| Cash Flows | - Operating cash flow declined significantly.<br>- Investing outflows reduced.<br>- Financing outflows stable.<br>- Cash balance improved but remains low. |
| Corporate Actions | - MOA amendment to expand business.<br>- Promoter group shareholding reclassified.<br>- Retirement of senior manager. |
Recommendations for further monitoring:
- Investigate reasons for sharp decline in Q2 FY26 revenue and profit (seasonality, demand, supply chain, etc.).
- Monitor impact of expanded business activities on future revenues and margins.
- Track cash flow trends and working capital management given reduced operating cash flow.
- Watch for any further corporate restructuring or strategic shifts following MOA amendments.
End of Analysis