Revenue growth came with a Rs 19.89 cr loss at Elin
Management attributed the margin squeeze to input costs, a 25% Ghaziabad wage increase, adverse mix and pricing pressure in battens.
Filed 06 Aug 2026, 14:54 IST · ELIN (ELIN)
Key takeaways
- Elin reported a standalone net loss of Rs 19.89 cr despite management saying revenue grew about +23.00% year on year.
- Operating margin was only 1.46% as management cited a 640-basis-point gross-margin hit from input costs, product mix and wage increases.
- Negative other income of Rs 22.45 cr more than offset the Rs 4.01 cr operating profit and drove the pre-tax loss to Rs 26.43 cr.
Growth did not translate into profit
These were standalone results. The company’s presentation said revenue grew about +23.00% year on year, led by volume and realisation gains outside motors; fans revenue rose about +75.00% and kitchen and home care about +70.00%. Operating profit of Rs 4.01 cr was overwhelmed by negative other income of Rs 22.45 cr, alongside Rs 2.10 cr of interest and Rs 5.88 cr of depreciation, resulting in a net loss of Rs 19.89 cr.
Input costs and mix squeezed the 1.46% margin
Management said gross margin fell about 640 basis points year on year as polymer, metal and aluminium prices increased and the rupee depreciated. The company also cited a roughly 25% increase in Ghaziabad’s minimum wage from April 1, 2026, a shift toward lower-margin products and competition that prevented price increases in battens. Management said higher prices also reduced chimney and mixer-grinder motor volumes.
Expansion spending continued in Bhiwadi and existing plants
The company presentation said Q1 FY27 capex was INR 75.6 million across Ghaziabad, Baddi and Goa, while spending toward the Bhiwadi facility had reached INR 620 million excluding land. Management said plant and machinery additions were directed mainly toward MG motors, the press shop and automation. The company also said it was developing tooling for new products.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹275 cr |
| Other income | ₹-22 cr |
| Expenses | ₹271 cr |
| Operating profit | ₹4 cr |
| Operating margin (%) | 1.46% |
| Interest | ₹2 cr |
| Depreciation | ₹6 cr |
| Profit before tax | ₹-26 cr |
| Tax | ₹-7 cr |
| Net profit | ₹-20 cr |
| EPS (₹) | ₹-4.00 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1 FY27 revenue grew about 23% year on year through volume and realization growth, except in motors.
- Fans revenue increased about 75% year on year, driven by better volumes, especially in BLDC ceiling fans.
- Kitchen and home care grew about 70% year on year on good volume growth across categories.
Expansion
- Q1 FY27 capex was INR 75.6 million across Ghaziabad, Baddi and Goa.
- Capex toward the Bhiwadi facility was INR 620 million, excluding land.
- Plant and machinery additions primarily supported MG motors, the press shop and automation.
New initiatives
- The company is developing tooling for new products.
- The company added machinery for automation.
Competition
- Irrational competition in battens prevented price increases and squeezed margins.
Problems & risks
- Gross margins fell about 640 basis points year on year due to higher polymer, metal and aluminium prices and rupee depreciation.
- Ghaziabad's minimum wage was revised upward by about 25% from April 1, 2026.
- A shift from higher-margin to lower-margin products affected gross and EBITDA margins.
- In battens, irrational competition prevented customer price increases despite substantial input-cost increases and squeezed margins.
- Chimney and mixer-grinder motor volumes declined because of sharp price increases.
What to watch
- Whether operating margin improves from 1.46% after the reported input-cost and product-mix pressure.
- Whether the revenue growth cited at about +23.00% year on year continues outside motors.
- Whether negative other income of Rs 22.45 cr recurs or the next quarter’s result reflects operating profit more closely.