Elin Electronics Q4 FY26: Loss of ₹0.8 Crore Amidst Soaring Raw Material Costs
Elin Electronics reported a Q4 FY26 consolidated loss of ₹0.8 crore versus a ₹17.2 crore profit last year, due to surging raw material costs. Revenue grew 3% YoY to ₹324 crore, while EBITDA fell to ₹6 crore. The company expects 15% revenue growth in FY27 and aims for full price transmission of costs by June 2026.
The results show a significant decline in profitability due to external factors, impacting current performance. However, the company has provided guidance for future growth and is taking steps to mitigate cost pressures, suggesting a medium-term recovery potential.
The company reported a net loss in the quarter and a significant drop in EBITDA due to rising raw material costs, which negatively impacted profitability.
Elin Electronics Limited reported a consolidated loss of ₹0.8 crore for the fourth quarter of FY2025-26, a significant shift from a profit of ₹17.2 crore in the same period last year. This downturn was primarily attributed to a sharp surge in raw material costs, particularly polymers and aluminum, exacerbated by global supply chain disruptions due to the Middle East conflict and a depreciating USD-INR rate. These factors impacted gross margins by 390 basis points.
Despite the margin pressures, operating revenue for the quarter saw a modest increase of 3% year-on-year, reaching ₹324 crore from ₹315 crore. Consolidated EBITDA, however, saw a steep decline to ₹6 crore from ₹20.2 crore year-on-year. The company maintained a strong liquidity position with a net cash balance of ₹70 crore as of March 2026.
Segment-wise, the lighting, fans, and switch segment revenue grew to ₹94 crore, driven by the fan business, which experienced a 67% YoY increase, particularly in BLDC ceiling fans and TPW fans. The LED lighting segment saw a decline, but the company anticipates double-digit growth in FY27. The home appliances segment revenue increased to ₹94 crore, with the personal care segment showing a 27% YoY growth. The fractional horsepower motor segment, however, saw revenues decline to ₹45.7 crore.
Looking ahead, Elin Electronics guided for a 15% revenue growth in FY27, with CapEx planned between ₹70 crore and ₹75 crore, including significant investment in the Bhiwadi facility. The Bhiwadi plant is expected to commence commercial production by the end of July or early August 2026, with an estimated revenue potential of ₹550 crore and a steady-state EBITDA of 7% within three years. The company expects price transmission to fully offset the increased raw material and labor costs by June 2026, aiming to return to previous margin levels.
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