Company Overview

Harsha Engineers International Limited is a globally recognized manufacturer and exporter of precision bearing cages and engineered components, supplying all six top global bearing manufacturers. The company operates across 32 countries with 5 manufacturing facilities and 16 warehouses worldwide, including subsidiaries in India, China, and Romania.

Financial Performance FY 2025-26

Consolidated Financials:

  • Revenue from operations: ₹1,626.79 crore (15.57% growth from ₹1,407.65 crore in FY25)
  • Profit Before Tax: ₹215.25 crore (58.6% growth from ₹135.68 crore in FY25)
  • Profit After Tax: ₹155.20 crore (73.78% growth from ₹89.31 crore in FY25)
  • EBITDA: ₹278.17 crore with 17.10% margin (FY25: 13.14%)
  • Basic EPS: ₹17.05 (₹9.81 in FY25)
  • Return on Average Equity: 11.68% (7.35% in FY25)

Standalone Financials:

  • Revenue from operations: ₹1,228.20 crore (12.75% growth)
  • Profit After Tax: ₹176.80 crore (400% growth from ₹35.36 crore in FY25)
  • Current Ratio: 3.66 times, Debt-Equity Ratio: 0.03 times

Operational Highlights

Manufacturing Expansion:

  • Commissioned Harsha Engineers Advantek Limited (HEAL) Bhayla greenfield facility with investment exceeding ₹250 crore
  • Commenced brownfield expansion project in China subsidiary with outlay of USD 9.94 million
  • Total capital expenditure incurred: ₹146.69 crore (net) during FY26

Business Segment Performance:

  • Engineering and Others segment revenue: ₹1,443.56 crore
  • Solar EPC and O&M segment revenue: ₹183.23 crore
  • Bronze Bushing business surpassed ₹125 crore with 25%+ growth
  • 532 new SKUs launched during the year

Strategic Contracts:

  • Secured long-term agreement for journal bearings/bushings with peak annual value of ₹117 crore
  • Entered Letter of Intent with multinational group for stamping products supply

Sustainability & ESG Initiatives

Environmental Performance:

  • Renewable energy contribution: 65% of total energy consumption
  • Total installed renewable capacity: 18.35 MW (including new 10.4 MW solar plant)
  • Scope 1 & 2 emission intensity: 0.98 metric tonnes CO₂ equivalent per metric tonne production
  • Water recharge: 2.9 million liters at Changodar, 2.8 million liters at Moraiya
  • Waste recycled: 955.08 MT with zero landfill approach
  • Net zero emissions target by 2050

Health and Safety:

  • Zero lost time injuries, zero fatalities, and zero recordable work-related injuries
  • 100% of plants and offices assessed for health and safety practices
  • Comprehensive safety mechanisms including Hazard Identification and Risk Assessment (HIRA)

CSR Activities:

  • CSR obligation: ₹3.41 crore, Amount spent: ₹1.99 crore
  • Flagship project: Anand Dham residential community for mentally challenged individuals
  • Total beneficiaries: 1,172 across various initiatives

Corporate Governance & Compliance

Board Composition:

  • 10 Directors total (5 Executive, 5 Non-Executive Independent including 2 women directors)
  • 4 Board meetings held during FY26
  • All mandatory committees constituted and functional

Compliance Status:

  • No material related party transactions requiring shareholder approval
  • No instances of fraud reported by auditors
  • No sexual harassment complaints received during the year
  • Credit rating maintained at CARE AA- (Stable) / CARE A1+
  • Statutory auditor provided unmodified opinion on financial statements

Capital Structure & Corporate Actions

Capital Structure:

  • Authorized Share Capital: ₹100 crore (100,000,000 equity shares of ₹10 each)
  • Issued, Subscribed and Paid-up Capital: ₹91.04 crore (91,044,105 equity shares)
  • Market Capitalization (as of March 31, 2026): ₹2,861.06 crore

IPO Proceeds Utilization:

Fully utilized ₹429.40 crore net proceeds as follows:

  • Debt repayment: ₹270.00 crore
  • Machinery purchase: ₹77.95 crore
  • Infrastructure repairs: ₹7.12 crore
  • General corporate purposes: ₹74.33 crore

Dividend & ESOP:

  • Board recommended final dividend of ₹1.50 per equity share
  • Record date: July 9, 2026, Payment date: On or after July 29, 2026
  • Proposed ESOP 2026 plan for up to 1,800,000 options with minimum 1-year vesting

AGM Details

  • 16th Annual General Meeting to be held on July 23, 2026 through VC/OAVM
  • Business includes adoption of financial statements, dividend declaration, director appointments, auditor ratification, and ESOP plan approval

Outlook and Strategy

The company remains focused on scaling bushing business towards ₹300 crore annual run rate, optimizing Bhayla facility utilization, expanding presence in EV and renewable energy components, maintaining double-digit revenue growth in FY27, and achieving Scope 2 neutrality by 2030.