Harsha Engineers International (HARSHA) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue in Q1 FY27 grew 25.2% year-over-year, driven by strong demand in India engineering and robust export performance, with auditors expressing unmodified opinions on the results.

• India engineering business posted 21% YoY growth, with margin compression due to higher raw material and indirect costs, and forex losses.

• Export sales from India grew 22% YoY and 11% QoQ, with continued demand in Europe, US, and other key markets.

• Subsidiary Advantek reported 7% sequential revenue growth but a PAT loss of Rs. 4.3 crores; expected to be PAT positive for the full year.

Financial highlights

• Q1 FY27 consolidated revenue from operations was ₹45,743 lakhs, up from ₹36,529 lakhs in Q1 FY26; consolidated engineering revenue reached INR 421 crore.

• Consolidated EBITDA for engineering was INR 69.8 crore, with a margin of 16.6% in Q1 FY27; consolidated EBITDA was ₹7,261 lakhs (15.9% margin).

• Solar business revenue was INR 36.3 crore (₹3,635 lakhs) with positive EBITDA of INR 2.82 crore.

• Working capital cycle improved to 115 days from 130 days in the previous quarter; receivable days decreased to 27 from 33.

• CapEx incurred in Q1 was INR 37 crore.

Outlook and guidance

• Expect mid to high teens growth in India and low teens consolidated sales growth for FY 2027.

• EBITDA margin guidance for India engineering is 20%-22%, with potential improvement if metal prices stabilize.

• Solar EPC segment targets INR 200 crore revenue for FY 2027 with 7%-8% EBITDA margin.

• Advantek expected to break even by year-end and match India EBITDA margins from next year.

• Combined losses from China and Romania subsidiaries expected to reduce to low single digits.