Elin Electronics Q4 FY26 Net Loss on Margin Compression

Event Type: Q4 FY26 Earnings Conference Call hosted by Sunidhi Securities
Event Date/Time: May 25, 2026 at 17:00 Hrs (Duration: 54 mins 10 secs)
Purpose: Discussion of fourth quarter and full fiscal year ending March 2026 results and business updates
Management Participants: Mr. Kamal Sethia (Managing Director), Mr. Akash Sethia (Head of Strategy). Mr. Sanjeev Sethia could not attend due to last-minute emergency.
Compliance Statement: The transcript was submitted pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015

Q4 FY26 Results:

Operating Revenue: ₹324 crores (vs ₹315 crores in Q4 FY25, up 3% YoY)
Consolidated EBITDA: ₹6 crores (vs ₹20.2 crores in Q4 FY25)
Consolidated Loss: ₹0.8 crores (vs Profit of ₹17.2 crores in Q4 FY25)
Gross Margin Impact: Compressed by 390 basis points due to raw material cost surge

Full Year FY26 Highlights:

Cash from Operations: ₹40.6 crores (vs ₹16.7 crores in FY25)
CapEx: ₹32.5 crores across existing facilities (excluding Bhiwadi)
Liquidity Position: Net cash balance of ₹70 crores as at March 2026
Working Capital: Net 59 days (inventory days higher due to strategic stockpiling)

Lighting, Fans and Switch Segment:

Revenue: ₹94 crores (vs ₹86.3 crores YoY)
LED Lighting (ex flashlights): Declined from ₹50 crores to ₹39.5 crores QoQ
Fan Business: Strong growth of 67% YoY driven by BLDC ceiling fans and TPW fans
Export Business: Restarted in May 2026 after tariff-related stoppage in August 2025

Home Appliances Segment:

Revenue: ₹94 crores (vs ₹87.1 crores last quarter)
Kitchen and Home Care: Flat YoY (some orders deferred due to raw material costs)
Personal Care: Up 27% YoY (hair dryers, sterilizers, hairbrushes)

Fractional Horsepower Motor Segment:

30% of input costs affected by polymer price surge and USD-INR depreciation
Price increases of 10-18% undertaken with customers
Full price transmission expected only by June 2026 due to quarterly settlement cycles
Additional labor cost pressure from 26% minimum wage hike in Uttar Pradesh effective April 1, 2026

Revenue Growth: 15% YoY (conservative estimate due to pricing impact on demand)
EBITDA Guidance: Withheld due to volatile input cost situation (to be provided next quarter)
CapEx Guidance: ₹70-75 crores (₹45 crores for Bhiwadi facility, ₹25-30 crores for existing business growth)

Construction Status: Largely complete, machine fitting in June 2026
Commercial Production: Expected end July/early August 2026
Total Project Cost: ₹100 crores (Phase 1: ₹67 crores, ₹26 crores already spent)
FY27 Revenue Estimate: ₹80 crores (reduced from earlier ₹140 crores estimate)
Long-term Potential: Revenue potential ₹550 crores, steady-state EBITDA 7%, ROCE 20% in third year

Serving 5 new customers in lighting in addition to Signify
Double-digit growth expected in lighting business in FY27
Launching cooler motors and BLDC chimney motors for third-party and captive consumption
BIS norms implementation timeline remains September 2026
Management change: Former CEO resigned (no replacement planned, working with business heads)

1. Kunal Mehta - Incred Equities

2. Rehan Laljee - Coheron Wealth

3. Zaki Nasser - Individual Investor

4. Sahil Doshi - Thinqwise Wealth Managers LLP

5. Samarth Ashok - Janak Merchant Securities

6. Moksh Ranka - Aurum Capital

7. Pawan Kuthri - Kolkata Metal Depot

Transcript edited for readability with blanks representing inaudible/incomprehensible words
The information is being uploaded on the company website at www.elinindia.com
Working capital target remains 45 days, but currently higher due to volatile environment
Capacity utilization across existing facilities: ~77-79%