Harsha Engineers International LimitedCapital Goods & EngineeringHARSHA
Q1 FY27 earnings callHarsha Engineers International Limited
Harsha delivered 25% YoY revenue growth driven by strong demand for cages, bushings, and stampings, despite margin pressure from raw material cost inflation and foreign exchange losses.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue Growth (YoY) | 25% | — | |
| India Engineering Business Revenue Growth (YoY) | 21% | — | |
| Consolidated Engineering Business Revenue | Rs. 421 crores | — | |
| Consolidated Engineering Business EBITDA | Rs. 69.8 crores | — | |
| Solar Business Revenue | Rs. 36.3 crores | — | |
| Solar Business EBITDA | Rs. 2.82 crores | — | |
| Export from India | Rs. 139 crores | 22% | |
| Bushing Sales | Rs. 34 crores | 35% |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹338.94 Cr+4.5% YoY-3.9% QoQ | ₹26.69 Cr-10.1% YoY-7.8% QoQ | ₹2.93-10.1% YoY-7.9% QoQ |
| Q2 FY25 | ₹352.58 Cr+3.9% YoY+2.7% QoQ | ₹28.96 Cr+42% YoY-19.7% QoQ | ₹3.18+42% YoY-19.7% QoQ |
| Q1 FY25 | ₹343.16 Cr-1.4% YoY-9.8% QoQ | ₹36.05 Cr+46.7% YoY-2% QoQ | ₹3.96+46.7% YoY-2% QoQ |
| Q4 FY24 | ₹380.40 Cr+10.7% YoY+17.2% QoQ | ₹36.78 Cr+12.8% YoY+23.9% QoQ | ₹4.04+12.8% YoY+23.9% QoQ |
| Q3 FY24 | ₹324.45 Cr+7.9% YoY-4.4% QoQ | ₹29.68 Cr-6.5% YoY+45.6% QoQ | ₹3.26-5.5% YoY+45.5% QoQ |
TL;DR
- Consolidated revenue grew 25% YoY, with India Engineering business up 21%.
- EBITDA margin declined QoQ due to an 8% raw material cost increase pending pass-through, Rs. 4 crore forex loss, and Rs. 3 crore rise in indirect material costs.
- Key growth drivers: Bushing sales up 35% YoY, Stamping sales up 31% YoY.
- Export from India grew 22% YoY to Rs. 139 crores.
- Harsha Advantek (subsidiary) targets Rs. 140+ crore sales and aims for PAT positivity by FY27-end.
- Harsha China is stable, expects 10% growth; Harsha Romania remains loss-making but combined losses for foreign subsidiaries are expected to reduce significantly.
Said on the call
“We are confident of continuing to grow strongly in India in the range of higher-teens and also achieving a consolidated sales growth of low-to-medium teens and we expect the bottom line to grow more strongly because of the combined impact of all the positive factors we have noted about.”
From the Q&A
| Topic | What management said |
|---|---|
| Overall Growth and Segment Performance | Growth was broad-based, driven by strengthening industrial demand and European recovery. |
| FY27 Growth Outlook | Management expects mid-to-high-teen growth in India and low-teen growth overall for FY27; 20% is a 'very tough stretch'. |
| Raw Material Cost and Margin Pressure | Gross margin decline was due to price increases across all materials (brass, copper, zinc, steel, polymer); pass-through with a lag is expected to normalize margins. |
| Foreign Subsidiaries (Romania & China) Performance | Romania had operational challenges and a Rs. 2 crore forex loss; combined losses for foreign subsidiaries are expected to reduce to 'much lower single-digit figures' (Rs. 2-4 crores) vs. Rs. 10 crores last year. China is stable and profitable. |
| Growth Drivers: Bushing, Stamping, Large Cages | Bushing growth is driven by conversion effects and wallet share, expected to last a couple of years. Stamping growth is from new product additions. Large Cages had a low Q1 due to ramp-up issues but strong orderbook supports confidence in ~50% growth for the year. |
| CapEx and Expansion Plans | CapEx guidance for FY27 is Rs. 50-80 crores, with Rs. 180-200 crores planned over 1.5-2 years for Bhayla Phase-2 and China Brownfield expansion. China expansion is on track for Q3 FY28 commissioning. |
| India Engineering Margin Guidance | Sustainable EBITDA margin for India Engineering business is expected in the range of 20-22%, lower than the previous year's 24.4% due to metal price impact and ramp-up costs. |
| Solar EPC Business Volatility | Solar is project-based with a seasonally strong Q4; FY27 revenue outlook is around Rs. 200 crores with 7%-8% EBITDA margin. |
Guidance
- Consolidated sales growth expected in the low-to-medium teens for FY27.
- India Engineering business growth expected in the mid-to-high teens.
- Bushing sales targeted to grow around 30% YoY.
- Stamping sales targeted to grow about 30% YoY.
- Large-size Cages expected to achieve ~50% growth for the year.
- Japanese customer sales expected to grow modestly by ~10%.
- Harsha Advantek targets sales of about Rs. 140+ crores and aims to be PAT positive by end of FY27.
- Harsha China expects ~10% growth with 12%-14% EBITDA margin.
Source
Summary written from the transcript filed by Harsha Engineers International Limited for the call held on 11 Aug 2026; published 22 Aug 2026, 10:23 IST.