Eimco Elecon Reports 57% Q4 Profit Drop; Declares ₹4 Final Dividend

Synopsis: Reporting a 20.8 percent decline in full-year net profit alongside a sharper 57 percent drop in Q4 earnings, Gujarat-based underground mining equipment manufacturer Eimco Elecon (India) Ltd has closed FY26 on a notably weaker footing than last year though the board has still recommended a Rs. 4 per share final dividend, subject to shareholder approval at the upcoming AGM.

Audited financial results for the quarter and year ended March 31, 2026, filed by Vallabh Vidyanagar-based Eimco Elecon (India) Ltd on Tuesday showed contraction both at the revenue and profit lines for the full year, while Q4 alone saw earnings more than halve against the year-ago quarter. A negative other income line in Q4 amplified the bottom-line hit for the March quarter.

With a market capitalization of Rs. 1,015.35 crore, the shares of Eimco Elecon (India) Ltd closed at Rs. 1,760 on Monday. The stock has delivered a  return of negative 5.9 percent over 6 months. It is trading at a P/E of 21.50.

For FY26, Eimco Elecon reported revenue from operations of Rs. 230.75 crore, down 6.4 percent from Rs. 246.47 crore in FY25. Net profit came in at Rs. 38.71 crore, a decline of 20.8 percent from Rs. 48.91 crore a year earlier.

The quarterly picture was weaker: Q4 FY26 revenue from operations grew 4 percent YoY to Rs. 66.88 crore, but net profit fell 57 percent to Rs. 6.36 crore from Rs. 14.87 crore in Q4 FY25.

A large part of the Q4 PAT miss traces back to the other income line turning negative at Rs. 1.31 crore, against a positive Rs. 4.15 crore in the same quarter last year, a swing of roughly Rs. 5.5 crore that flowed directly through to PBT.

Employee costs for the full year rose 13 percent to Rs. 22.01 crore, partly due to an additional Rs. 43.16 lakh provision toward gratuity following the implementation of the four new Labour Codes notified by the Central Government in November 2025. The company has flagged that further accounting adjustments may follow once final State-level Rules and government clarifications are issued.

Despite the earnings decline, the board has recommended a final dividend of Rs. 4 per equity share (40 percent on face value of Rs. 10) on 57,68,385 fully paid-up shares, payable within 30 days of AGM conclusion.

The FY25 payout stood at Rs. 5 per share. So, the per-share dividend has been trimmed by 20 percent, broadly tracking the earnings contraction. At the reference price of Rs. 1,445, the declared dividend implies a yield of approximately 0.28 percent.

Business Overview

Incorporated in 1974 and, Eimco Elecon (India) Ltd manufactures and markets equipment for underground and opencast mines, including side dump loaders, load haul dumpers, and haulers, with mining machinery and spares accounting for approximately 89 percent of revenue.

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