Elin Electronics reports strong Q2 FY26 growth, revenue up 23% YoY, EBITDA up 80%; announces Rewari plant progress

* Elin Electronics Limited submitted the transcript of its Q2 FY26 earnings conference call held on November 10, 2025. The call discussed financial and operational performance, future guidance, and strategic initiatives. For Q2 FY26, the company reported: Operating revenue of ₹375 crore, a 23% year-on-year (YoY) increase from ₹305 crore in the same period last year. This growth was primarily driven by the appliance and fan businesses, new product launches, customer acquisition, and advanced Diwali sales. Consolidated EBITDA stood at ₹20.4 crore, marking a strong 80% growth compared to ₹11.3 crore in the previous year. This was due to robust revenue growth, higher operational efficiencies, and benefits from operating leverage. Consolidated PAT increased to ₹10.3 crore from ₹4.8 crore in the same quarter last year. The company maintained a strong liquidity position with net cash of ₹94 crore as of September 2025 and improved working capital to net 53 days. CapEx in H1 FY26 was ₹14.5 crore, and cash flow from operations in H1 FY26 was ₹36 crore, up from ₹28 crore in the prior year. Segmental Performance: The Lighting, Fans, and Switch segment revenue was ₹72.4 crore (up from ₹66.6 crore YoY), primarily boosted by nearly 100% YoY growth in the fan business, particularly BLDC ceiling fans. LED lighting saw a marginal decrease from ₹50 crore to ₹47.4 crore. The Home Appliance segment recorded robust growth, with revenue increasing from ₹83 crore to ₹140 crore. Kitchen and Home Care revenue surged by 98% YoY, supported by new product launches (OFR) and earlier Diwali sales. Personal Care grew 27% YoY across categories like hair dryers and trimmers. The FHP Motors segment revenue remained stable at ₹74 crore (third-party sales), with underlying growth strong due to captive consumption. New products, including cooler motors and BLDC chimney motors, are planned for next year. Guidance for FY26: Initial revenue guidance was ₹1350 crore (15% growth over FY25), with H1 FY26 achieving ₹670 crore (50% of target). Revenue may be impacted by up to 3% due to stalled US exports (zero since August 2025) caused by tariff uncertainties. EBITDA margin forecast was 6-6.5%. H1 FY26 was 5.7% (5.9% adjusted for one-off costs like elevated power expenses of approximately ₹50 lakh and international air freight of approximately ₹60 lakh). Full-year EBITDA margin could be 5.5-6% due to the impact of lower-margin domestic sales. CapEx for the year is projected at ₹100-110 crore, with ₹60-65 crore allocated for Phase one of the new Rewari plant and ₹35-40 crore for existing businesses. Rewari Factory Update: Total project cost is estimated at ₹100 crore. Construction commenced in July 2025 and is expected to be operational by March or April 2026. The plant is projected to generate revenues of approximately ₹140 crore in FY27 and ₹250 crore in FY28, with a potential revenue capacity of ₹500-600 crore and a steady-state EBITDA of 7-7.5%. Elin Electronics is actively diversifying its customer base, with the Philips Group's contribution decreasing from 55-56% to approximately 43%. The ODM share in the appliances segment is around 25% and expected to grow. Capacity for medical cartridges has been expanded by 15-18% and is expected to come online in 1-3 months. The Bhiwadi facility is progressing, with three out of four planned products (OFR heaters, chimneys, ovens) expected to have pre-approvals from the Ghaziabad plant for a seamless transition. Air cooler product launches might see a slight delay. The company is also studying washing machine and air conditioner BLDC motors for future expansion, anticipating BIS implementation.Management expressed confidence in continued growth in the fan segment and the strategic shift towards a one-stop-shop for high-volume home appliances.