Harsha Engineers International Ltd (NSE:HARSHA)

Q1 2027 Harsha Engineers International Ltd Earnings Call Transcript

Aug 11, 2026 / 11:00 AM GMT

Release Date Price: ₹410.45 (-5.12%)

Transcript

Key Points

Positve

Harsha Engineers International Ltd (BOM:543600) reported a strong 25% year-over-year consolidated revenue growth in Q1 FY27, driven by a 21% growth in its India engineering business.
The company's key growth drivers, bushing and stamping sales, grew 35% and 31% year-over-year respectively, with management confident of achieving over 30% growth for the full year in both segments.
Exports from India showed robust growth, increasing 22% year-over-year and 11% quarter-over-quarter, supported by strong demand from Europe, the US, and other key markets.
The company's working capital cycle improved to 116 days from 130 days in the previous quarter, indicating better operational efficiency.
Management expects the bottom line to grow more strongly than the top line, driven by a reduction in losses at its foreign subsidiaries and a ramp-up in the Advantech business, which is expected to turn EBITDA positive by the end of FY27.
The company has strong visibility on its order book and pipeline, particularly for large-sized cages, and is confident of achieving a 50% growth in this segment despite a soft Q1.
Harsha Engineers International Ltd (BOM:543600) is investing in capacity expansion in India and China, which is expected to drive future growth, with the China brownfield project on track for commissioning in Q3 FY28.

Negative

The company's EBITDA margin in the India engineering business declined quarter-over-quarter due to an 8% increase in average raw material costs, which will only be passed through to customers with a lag of one to two quarters.
Q1 FY27 was impacted by a foreign exchange loss of approximately INR 4 crore due to technical accounting reasons related to the realization of cash flow hedges.
The company experienced an increase in indirect material costs, such as oil, chemicals, and packing materials, due to inflationary pressures, which added approximately INR 3 crore to costs in Q1.
The Harsha Romania subsidiary continues to report operating losses, exacerbated by a one-time foreign exchange loss of INR 2 crore due to adverse currency movements between the local currency and the euro.
The large-sized cage segment saw lower Q1 sales due to capacity ramp-up challenges at the new facility, which is still struggling to respond to demand.
Management guided for a modest 10% growth in sales to Japanese customers for FY27, as the development and conversion process for these customers is slow.
The company expects consolidated sales growth of only low-to-mid teens for FY27, which is below the 20% growth some investors may have hoped for, with India growth expected in the high teens.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HRSH.NS - Harsha Engineers International Ltd
Q1 2027 Harsha Engineers International Ltd Earnings Call
Aug 11, 2026 / 11:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and Gentlemen, Good day and welcome to Harsha Engineers International Limited Q1 FY27 Analyst and Investor Earnings Conference Call.

As a reminder, all participant lines will be in lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call, please signal an operator by pressing *0 on your touchstone phone.

Please note that this conference is being recorded.

And now in the conference, over to Mr. Vishal Rangwala, CEO of the company.

Thank you and over to you Mr. Rangwala.

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