Financial Performance Highlights

Consolidated Performance (FY 2025-26)

  • Revenue from Operations: ₹2,366 crore (6.20% YoY growth)
  • EBITDA: ₹523 crore (EBITDA margin: 22.10%)
  • PAT: ₹341 crore (PAT margin: 14.40%)
  • Order Intake: ₹2,660 crore (11.80% growth)
  • Closing Order Book: ₹1,292 crore
  • Net Worth: ₹2,278 crore
  • Debt-Equity Ratio: 0.12

Standalone Performance (FY 2025-26)

  • Revenue: ₹2,016 crore
  • EBITDA: ₹474.79 crore
  • PAT: ₹476.70 crore
  • Total Assets: ₹323,368 lakhs
  • Unexecuted Orders: ₹1,178 crore (Gear: ₹781 crore, MHE: ₹397 crore)
  • Investments in mutual funds: ₹59,436 lakhs
  • Trade receivables: ₹72,051 lakhs
  • Zero borrowings maintained

Division-wise Performance

Gear Division:

  • Revenue: ₹1,699 crore
  • EBIT: ₹319 crore (EBIT margin: 18.80%)
  • Closing Order Book: ₹894 crore (53% YoY increase)

MHE Division:

  • Revenue: ₹667 crore (43.60% YoY growth)
  • EBIT: ₹184 crore (EBIT margin: 27.60%)
  • Closing Order Book: ₹398 crore

Dividend Declaration

  • Interim Dividend: ₹0.50 per share (50%) paid on November 3, 2025
  • Final Dividend: ₹1.50 per share (150%) recommended, subject to shareholder approval at AGM on June 25, 2026
  • Total Dividend for FY 2025-26: ₹2.00 per share (200%)
  • Total Cash Outflow: ₹44.88 lakh
  • Record Date: June 12, 2026

Exceptional Items and Accounting Changes

  • Eimco Elecon (India) Limited ceased to be an Associate effective April 23, 2025, resulting in unrealized mark-to-market gain of ₹14,942 lakhs (net of tax)
  • Implementation of new Labour Codes notified by Government of India on November 21, 2025, resulting in incremental impact of ₹312 lakhs recognized in P&L
  • Goodwill impairment of ₹10,177 lakhs recognized as exceptional loss

Operational Highlights

Global Presence

  • Operations in 95+ countries
  • 5 manufacturing facilities & assembly centers
  • 26 sales offices worldwide
  • 185+ distributors & dealers
  • Domestic revenue contribution: 78%
  • Export revenue contribution: 22%

Manufacturing Capabilities

  • Integrated manufacturing facility spanning 3,35,000 sq. meters in Vallabh Vidyanagar, Gujarat
  • New BMCE 2 manufacturing plant commissioned
  • In-house foundry, fabrication, machining, heat treatment, and testing capabilities
  • NABL-accredited testing laboratory

Research & Development

  • DSIR-approved in-house R&D facility
  • 105+ engineers dedicated to R&D
  • 20+ software tools for design and analysis
  • 4 granted patents, 3 patents applied
  • Focus on energy efficiency, product innovation, and custom engineering

Strategic Initiatives

Growth Strategies

Gear Division:

  • Domestic growth supported by industrial capex in power, steel, cement sectors
  • Strategic overseas growth through expanding channel partner ecosystem
  • Focus on defense and complex applications including naval gearboxes
  • Export-led expansion in Europe, Middle East, Americas, and Asia Pacific

MHE Division:

  • New product development including Hanging Type Paddle Feeder (4,500 TPH capacity) and Auto Tension Take-Up Winch
  • Strategic capacity expansion program over next three years
  • R&D investments reducing design cycle time by 15%
  • Adoption of AI-assisted design and generative modeling

Global Expansion

  • Established presence in Mexico through Grupo Radicon SA de CV (incorporated January 8, 2026)
  • Targeting increased export contribution from current 29% to higher levels by FY 2029-30

Corporate Governance and Board Changes

Appointments:

  • Dr. Savan R. Godiawala as Additional Independent Director (effective April 15, 2026)
  • Mr. Aayush A. Shah as Executive Director (effective October 1, 2026)
  • Mrs. Natasha K. Treasurywala as Independent Woman Director (effective April 24, 2025)

Re-appointments:

  • Mr. Prayasvin B. Patel as Chairman & Managing Director (effective July 1, 2026)
  • Mr. Pradip M. Patel as Director (retiring by rotation)

Cessation:

  • Dr. Sonal V. Ambani ceased as Independent Director (August 13, 2025)
  • Mr. Narasimhan Raghunathan resigned as CFO (January 31, 2026)

Key Managerial Personnel

  • Mr. Prayasvin B. Patel: Chairman & Managing Director
  • Mr. Chintan J. Shah: Chief Financial Officer (appointed April 15, 2026)
  • Mrs. Bharti L. Isarani: Company Secretary & Compliance Officer

ESG Initiatives

Environmental

  • Renewable energy capacity: 13.20 MW (Wind) + 5.50 MW (Solar)
  • 8.30 MW under commissioning
  • 55% electricity consumption from renewables
  • SBTi-approved decarbonization roadmap: 54.60% reduction in Scope 1 & 2 emissions by FY 2032-33
  • Water conservation: 97,899 KL reused through STP, rainwater harvesting initiatives

Social

  • 210+ development programs
  • 12,500+ training hours (4,700+ trainees)
  • CSR Spend: ₹733.63 lakh
  • Zero fatality workplace target
  • Comprehensive health and safety training programs

Governance

  • 4 Independent Directors on Board
  • Robust whistleblower mechanism and POSH policy
  • ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications

Auditors

Statutory Auditors: CNK & Associates LLP (re-appointed for second term of 5 years until FY2030-31)

Cost Auditors: Ketki D. Visariya & Co. (remuneration: ₹1.70 lakh)

Secretarial Auditors: Samdani Shah & Kabra

Compliance Status

  • No material orders from regulators/courts impacting going concern status
  • No instances of fraud requiring reporting under Section 143(12)
  • Complied with all applicable laws and regulations

Contingent Liabilities

  • Tax disputes: ₹10,943 lakhs (Excise/Service tax: ₹4,930 lakhs, GST: ₹1,040 lakhs, Income tax: ₹4,702 lakhs, Sales tax: ₹12 lakhs)
  • Other claims: ₹961 lakhs
  • Capital commitments: ₹16,677 lakhs remaining to be executed

AGM Details

  • Date: June 25, 2026
  • Time: 3:00 PM IST
  • Mode: Video Conferencing/Other Audio Video Means
  • Venue: Registered Office at Anand-Sojitra Road, Vallabh Vidyanagar
  • Remote e-voting period: June 22, 2026 (9:00 AM) to June 24, 2026 (5:00 PM)

Forward Outlook

  • Healthy order book providing strong revenue visibility
  • Continued investments in capacity expansion and technology upgradation
  • Focus on increasing export contribution and global market presence
  • Alignment with India's infrastructure growth and Aatmanirbhar Bharat initiatives
  • Cautious optimism amid global macroeconomic uncertainties