Microcap stock skyrockets 16% after reporting 133% QoQ increase in net profits

Synopsis: After a robust Q3FY26 result including 133 percent profit growth and 90 percent sales growth, the mining company’s board has also approved the purchase of a land parcel worth Rs 47 Cr.

Shares of company engaged in business of manufacturing mining equipment saw its stock surge by 16 percent soon after it announced its Q3FY26 results with a profit growth of 133 percent QoQ, and a revenue growth of 90 percent QoQ, along with an approval for the purchase of a 35,056 sqm lard parcel.

With a market cap of Rs 1,056 Cr, Eimco Elecon (India) Ltd saw its stock hit an intraday high of Rs 1884 which is more than 16 percent higher than the previous close of Rs 1624. The stock has given a 62 percent compounded return in the last 3 years.

The Q3FY26 Result

Eimco Elecon (India) Ltd announced that the company in Q3FY26 the company delivered a strong operational and financial performance, with a revenue of Rs 63 Cr in Q3FY26 the company witnessed a 90 percent QoQ rise from Rs 33 Cr of Q2FY26 and 40 percent YoY rise from Q3FY25’s Rs. 45 Cr. 

Talking about profits, the company saw a 133 percent QoQ growth from Rs 5 Cr of Q2FY26 to Rs 12 Cr of Q3FY26, and a 102 percent YoY growth from Q3FY25’s Rs. 6 Cr.

The company’s 9MFY26 revenue has fallen by 10 percent from Rs. 182 Cr of Q3FY25 to Q3FY26’s Rs 163 Cr. The same trend can be witnessed in the bottom line as well 9MFY26 net profits falling by 5 percent to Rs 32 Cr from Rs 34 Cr of 9MFY25. Even though both the current quarter’s revenue and net profit are about 66 percent of the last fiscal year’s numbers of Rs 246Cr and Rs 48Cr respectively.

Apart from these the company has a 3 year profit CAGR of 78 percent, while the sales CAGR for the same period is at 43 percent. The stock has a PE of 25, which is significantly lower than the industry PE of 32.

Purchase of Land 

Eimco Elecon (India) also announced that in order to support its long-term growth and future business outlook, the board has approved the purchase of 35,056 sqm of freehold land in Kheda, Gujarat. The transaction has a monetary size of Rs 47 Cr.

Company Overview

Eimco Elecon (India) Limited, is  engaged in the manufacturing and marketing of equipment for underground and opencast mining. Headquartered at Vallabh Vidyanagar, Gujarat, the company has played a role in India’s mining equipment industry. 

Eimco Elecon was the first company in the country to introduce intermediate mining technologies, including Side Dump Loaders, Load Haul Dumpers (LHDs), and Rocker Shovel Loaders, significantly enhancing productivity and mechanisation in Indian mines. With marquee clients such as Tata Steel, Coal India, and Hindustan Zinc, Eimco Elecon (India) Limited is a key player in manufacturing and marketing equipment for underground and opencast mines.

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