The Elecon Engineering share price came under sharp pressure in the stock market today, catching many investors off guard as the stock saw heavy selling action through the session.
On Friday, January 9, Elecon Engineering shares slipped as much as 16% intraday, touching a nine-month low of ₹422 per share. The fall came a day after the company announced its Q3FY26 financial results, released post market hours on Thursday.
The numbers told a mixed story—stable revenue, but profit taking a clear hit.
Market Performance: Sharp Sell-Off After Results
The market reaction was swift and direct.
- Intraday fall: 16%
- Lowest level: ₹422 per share
- Timeframe: Nine-month low
The selling pressure followed weak profit numbers despite revenue holding steady. Traders appeared to factor in slower execution in key business segments, which weighed on sentiment in the stock market today.
Main News: Profit Slides, Revenue Stays Steady
Elecon Engineering reported a net profit of ₹72 crore for Q3FY26, down 33% year-on-year compared to ₹108 crore in the same quarter last year.
Revenue showed limited growth:
- Consolidated revenue: ₹552 crore
- Year-on-year growth: 4.3%
The company attributed the muted performance to delays in order inflows, particularly within its core gear business.
Segment-Wise Performance Tells the Real Story
Gear Division Faces Execution Delays
The gear segment remained under pressure during the December quarter.
- Gear segment revenue: ₹429 crore
- Growth: Flat year-on-year
The slowdown in order flow affected execution timelines. Customer-led delays resulted in deferred dispatches and stretched delivery schedules, impacting overall profitability.
MHE Division Shows Stability
In contrast, the Material Handling Equipment (MHE) segment offered some support.
- MHE revenue: ₹123 crore
- Year-on-year growth: 16.3%
Consistent domestic order wins helped the division post better numbers, cushioning the impact of weakness in the gear business.
Financial Snapshot: Q3FY26 at a Glance
Here’s a clean breakdown of Elecon Engineering’s December quarter performance:
- Revenue: ₹552 crore
- EBITDA: ₹109 crore
- EBITDA Margin: 19.8%
- Net Profit (PAT): ₹72 crore
- PAT Margin: 13.0%
Order-related metrics remained steady:
- Order intake: ₹701 crore
- Order book (as of Dec 31, 2025): ₹1,372 crore
Elecon Engineering Share Price Trend Over Time
The recent fall adds to an already challenging phase for the stock.
- Fall from July 2025 high of ₹716: ~40%
- Drop from all-time high of ₹739: ~42%
On a calendar-year basis, the stock ended CY25 down 24%, marking its first annual decline in five years.
Despite short-term weakness, the long-term price journey remains notable:
- 3-year gain: ~140%
- 5-year gain: ~1,630%
These numbers highlight the contrast between recent volatility and long-term performance.
Company Details: A Brief Overview
Elecon Engineering is among India’s largest industrial gear solution providers, catering to sectors such as power, cement, steel, mining, and infrastructure. Alongside gears, the company operates a Material Handling Equipment division serving domestic and international markets.
Summary: What Drove the Fall in Elecon Engineering Share Price?
The sharp drop in Elecon Engineering share price in the stock market today reflects a clear market response to weaker profitability in Q3FY26.
- Profit declined sharply despite stable revenue
- Gear segment execution delays impacted margins
- MHE division offered partial support
- Short-term sentiment weakened, pushing the stock to a nine-month low
For now, the stock remains under pressure as investors digest the latest earnings and reassess near-term performance based strictly on reported numbers.
Source: Livemint
Easy & quick
Leave A Comment?