Company Disclosures: Earnings & Results

Key Financial Performance

Q4FY26 Performance (YoY):

  • Revenue: INR 3,242 million, up approximately 3% from INR 3,157 million in Q4FY25.
  • EBITDA: INR 60 million, down approximately 70% from INR 202 million in Q4FY25.
  • EBITDA Margin: 1.8%, down from 6.4% in Q4FY25.
  • Profit After Tax (PAT): INR (8) million, a decline from INR 172 million in Q4FY25.

FY26 Full Year Performance (YoY):

  • Revenue: INR 12,877 million, up from INR 11,802 million in FY25.
  • EBITDA: INR 546 million, up from INR 524 million in FY25.
  • EBITDA Margin: 4.2%, slightly down from 4.4% in FY25.
  • PAT: INR 226 million, down from INR 293 million in FY25. The FY25 PAT included a one-time gain of INR 81 million from a share sale.

Financial Position & Metrics

  • Net Cash Position: INR 701 million, improved from INR 590 million.
  • Net Working Capital Days: ~59 days, improved from ~65 days.

Segment-Wise Revenue Breakdown (Q4FY26)

The company's revenue is broken down into the following segments:

  • Lighting, Fans & Switches: INR 940 million (Q4FY25: INR 863 million)
  • Small Appliances: INR 940 million (Q4FY25: INR 871 million)
  • FHP Motors: INR 457 million (Q4FY25: INR 510 million)
  • Other EMS: INR 193 million (Q4FY25: INR 190 million)
  • Precision Components & Others: INR 596 million (Q4FY25: INR 625 million)
  • Medical Cartridges: INR 116 million (Q4FY25: INR 97 million)

Detailed Segment Performance & Discussion

Lighting, Fans & Switches:

  • Lighting: Revenue was INR 395 million (FY26: INR 1,652 million; FY25: INR 2,147 million). The company is at an inflection point, having added 5 new customers. Small price hikes were undertaken to improve margins.
  • Fans: Revenue was INR 459 million (FY26: INR 1,072 million; FY25: INR 597 million), up ~67% YoY, driven by better volumes in BLDC ceiling fans and good traction in TPW category.
  • Flashlights: Revenue was INR 52 million (FY26: INR 237 million; FY25: INR 244 million).
  • Switches: Revenue was INR 35 million (FY26: INR 128 million; FY25: INR 112 million).

Small Appliances:

  • Kitchen & Home Care: Revenue was flat YoY at INR 617 million (FY26: INR 1,738 million). Volumes marginally declined as orders were deferred in March due to surging raw material costs.
  • Personal Care: Revenue grew 32% YoY to INR 323 million (FY26: INR 1,121 million), driven by better volumes in hair dryers, sterilizers, and heated hair brushes.

Fractional Horsepower (FHP) Motors:

  • Consumer Durables: Revenue was INR 352 million (FY26: INR 1,866 million; FY25: INR 1,899 million). Growth in chimney motors was offset by a decline in mixer grinder motors.
  • Fans: Revenue was INR 61 million (FY26: INR 239 million; FY25: INR 293 million).
  • Others: Revenue was INR 43 million (FY26: INR 157 million; FY25: INR 274 million), impacted as customers shut production in March 2026 due to a gas crisis caused by the war.

Expenditure Analysis (Q4FY26 as % of Revenue)

  • Cost of Material Consumed: 77.3% (up from 73.3% in Q4FY25)
  • Employee Benefits Expense: 12.9% (flat vs. Q4FY25)
  • Other Expenses: 7.9% (up from 7.4% in Q4FY25)
  • Finance Costs: 0.7%
  • Depreciation: 2.0%

Profitability Metrics

  • Profit Before Tax (PBT) Margin: -0.5% in Q4FY26 (vs. 7.0% in Q4FY25); 2.3% for FY26 (vs. 3.3% in FY25).
  • Tax Expense: -0.3% of revenue in Q4FY26.

Rationale for Margin Compression

EBITDA margin was significantly impacted in Q4FY26, with gross margins compressed by approximately 390 basis points. This was primarily due to a sharp surge in polymer prices driven by higher crude oil prices (a result of the war and challenging geopolitical situation) and the depreciation of the Indian Rupee (INR) against the US Dollar (USD).

Capital Expenditure (Capex) Overview

Capex for the period was broken down by location and type:

| INR million | Ghaziabad | Baddi | Goa | Total |

| Land & Building | 38 | 0 | 0 | 38 |

| Plant & Machinery | 116 | 30 | 23 | 168 |

| Electrical Installation | 4 | 0 | 1 | 6 |

| Tools, Dies & Moulds | 52 | 28 | 12 | 92 |

| Others | 13 | 6 | 3 | 21 |

  • Plant & Machinery additions were primarily for OFR, OTG, and automation of the motor assembly line.
  • Tools, Dies & Moulds represent tooling development for new products.

Guidance & Future Outlook (FY27)

The company provided the following guidance for the financial year 2026-27 (FY27):

  • Revenue: Growth of approximately 15% over FY26, largely led by the Home Appliances and Fans segments.
  • EBITDA Margin: Difficult to guide due to the highly volatile geopolitical situation causing fluctuations in raw material costs.
  • Capital Expenditure: INR 70 crore planned, with INR 45 crore allocated for the new Bhiwadi facility and INR 25 crore for scaling the existing business.
  • Working Capital Days: Target of ~50 days, with improvement to be led by inventory and payables management.

Future Growth Drivers

The presentation highlighted several long-term growth drivers:

  • Government initiatives: 'Make in India' thrust, BIS norms, and PLI benefits.
  • Favourable Demographics: Higher disposable income, rising urbanization, and a focus on convenience.
  • Operational Excellence: Cost leadership achieved through economies of scale, R&D, automation, and operational excellence.

Company Overview & Business Segments

Elin Electronics Limited is a leading Electronics Manufacturing Services (EMS) company manufacturing end-to-end product solutions for international and domestic brands in lighting, fans, and home appliances. It is one of the largest fractional horsepower motors manufacturers in India. The company operates on both OEM and ODM business models.

Manufacturing Facilities:

  • Ghaziabad, Uttar Pradesh (Commenced 1970): FHP motors, LED lighting, fans, plastic parts, sheet metal components.
  • Verna, Goa (Commenced 1995): Medical diagnostic cartridges, plastic parts, sheet metal components.
  • Baddi, Himachal Pradesh (Commenced 2004): Home appliances – small appliances & personal care products.
  • Bhiwadi, Rajasthan (New): Medium-sized home appliances such as air coolers, chimneys, and OTGs will be manufactured here.