NEW DELHI: Elecon Engineering Company Ltd was founded in 1951 and has, over the years, evolved as a key player for projects related to Engineering, Procurement, and Construction in the country. The business of Elecon is anchored by 2 primary divisions, industrial gears and material handling equipment, where each is playing a distinct role in shaping the overall performance of the company. Elecon Engineering has gone beyond power transmission solutions with a dedicated material handling division (MHE) division that caters to the entire value chain .The company established its Gear Division in 1976 to become Asia’s largest industrial gearbox manufacturer after six decades of expertise . It has unmatched expertise in providing custom-built gearboxes for Steel Mills, High Speed Turbine, Sugar Mills, Marine Applications, Plastic Extrusions, Cement Mills, Rubber Mills, Hydro Turbine and Windmill Gearboxes segment . Elecon Engineering is also supplying hi-tech equipment to major core sectors such as Fertilisers , Cement, Coal mining, Power, Textile, Plastic, Steel and Port Mechanisation in India and overseas . The gear division has grown by 28.9% on a year on year basis having contributed around 75% to the Q4FY25 consolidated revenue of Rs 597 crores . This excellent performance has been driven by robust demand both in the domestic and international markets , particularly from the steel, power and cement sectors . On the other hand , the MHE division has also posted exceptionally strong growth with FY25 revenue up 72.8% year on year as well as Q4FY25 revenue going up 98.2% on the back of a focused strategy led by demand from the steel and power sectors. The company has exceeded its annual guidance by achieving 40 basis points higher EBITDA margins reflecting strong operational efficiencies and disciplined cost management. Elecon posted Q4FY25 financial performance with consolidated revenue at Rs 798 crores reflecting a robust growth of 41.3% year on year compared to Rs 565 crores in Q4FY24 . Domestic revenue at Rs 662 crores contributed 83% of the consolidated revenue , whereby registering a superlative growth of 48.8% year on year as compared to Rs 445 crores during Q4FY24 . On the other hand , the overseas revenue for Q4FY25 stood at Rs 136 crores registering a growth of 13.4% on a year on year basis as compared to Rs 120 crores in Q4FY24 of the last fiscal . The consolidated EBITDA for Q4FY25 was Rs 195 crores , up from Rs 135 crores in Q4FY24 representing an excellent growth of 44.3% . Consequentially, the EBITDA margin improved to 24.5% as compared to 24% in Q4FY24 driven by a favourable product mix , improvement in after sales service and operational efficiencies. Profit after Tax grew by 18.4% from Rs 104 crores in Q4FY24 to Rs 146 crores for the quarter gone by . Elecon is expecting a strong pipeline of sales growth opportunities in the industrial gear segment for FY26. Similarly , the MHE division is also quite confident in continuing with its upward momentum for the next financial year . Both the divisions have a healthy order book and a robust outlook across core sectors backed by a strong research and development team . Elecon is also actively pursuing opportunities in new international markets of Canada and Latin America on the back of consistent demand scenario. The management is its last earnings call has provided a guidance of Rs 2650 crores in consolidated revenue and an EBITDA margin of 24% for FY26 reflecting the continuous strength of the company’s business model . Giving the company’s detailed break up of next years business guidance , the company management is quite optimistic and expect Rs 2000 crores from the gears division and Rs 650 crores from the material handling equipment division . The stock price of Elecon Engineering is currently quoting at Rs 575 on the bourses and analysts and brokerage houses are bullish on the scrip and expect a 25% price appreciation in the next one year time frame. Investors should note that markets are quite volatile and they must do their own proper due diligence and check from their financial consultants before purchasing the stock.