Harsha margin edges above peer median as Advantek remains loss-making
Management cited Rs 3 cr of higher indirect-material costs and a Rs 4 cr forex loss, even as India Engineering grew +21.00% year on year.
Filed 11 Aug 2026, 13:07 IST · Harsha Engineers International Ltd (HARSHA)
Key takeaways
- Harsha Engineers’ consolidated operating margin was 14.75%, just 0.11 percentage points above the 14.64% median for 95 Industrials peers.
- Management said India Engineering grew +21.00% year on year, while Bushings sales rose +34.70% to Rs 34 cr.
- Management said Advantek reported a Rs 4.3 cr PAT loss in Q1FY27 but is expected to be PAT-positive for the full year.
Price around the results
Margin was only marginally ahead of Industrials peers
Harsha Engineers’ consolidated operating margin of 14.75% was 0.11 percentage points above the 14.64% median among 95 Industrials companies that have reported. That places the company around the middle of the peer distribution, with 50 companies ranked from the bottom.
Indirect materials and forex weighed on the quarter
Management said indirect-material costs, including oil and packing material, were around Rs 3 cr higher in Q1FY27. It also cited a forex loss of around Rs 4 cr from settling cash-flow hedges taken in previous quarters. Management separately said Advantek reported slightly lower EBITDA and a Rs 4.3 cr PAT loss, while Harsha Romania continued to report negative EBITDA and PAT.
Engineering growth was led by Bushings
Management said the India Engineering business grew +21.00% year on year in Q1FY27. It reported Bushings sales of Rs 34 cr, up +34.70% year on year, and said the company is diversifying into complex and specialised precision-stamped and bushing components. The presentation also said large-size cage demand is expected to support over +30.00% growth versus FY2025-26.
Management is watching Advantek’s full-year profitability
Management said Advantek is expected to be PAT-positive on a full-year basis despite its Rs 4.3 cr PAT loss in Q1FY27. The company also said it supplies products to each of the top six global bearing manufacturers, providing context for its focus on specialised components and large-size cages.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹457 cr |
| Other income | ₹5 cr |
| Expenses | ₹390 cr |
| Operating profit | ₹67 cr |
| Operating margin (%) | 14.75% |
| Interest | ₹6 cr |
| Depreciation | ₹14 cr |
| Profit before tax | ₹53 cr |
| Tax | ₹16 cr |
| Net profit | ₹37 cr |
| EPS (₹) | ₹4.11 |
Operating margin of 14.75% compares with a Industrials sector median of 14.64% across 95 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- India Engineering business grew 21% year on year in Q1 FY 2027.
- Bushings sales were Rs. 34 crores in Q1 FY 2027, up 34.7% year on year.
Guidance & outlook
- Advantek is expected to be PAT positive on a full-year basis.
- Large-size cage demand is expected to support over 30% growth versus FY 2025-26.
New initiatives
- The company is diversifying into complex and specialized precision stamped and bushing components.
Competition
- The company supplies products to each of the top six global bearing manufacturers.
Problems & risks
- A forex loss of around Rs. 4 crores resulted from settlement of previous quarters’ cash flow hedges.
- Indirect-material costs, including oil and packing material, were around Rs. 3 crores higher.
- Advantek reported slightly lower EBITDA and a PAT loss of Rs. 4.3 crores in Q1 FY 2027.
- Harsha Romania continued to underperform with negative EBITDA and PAT in Q1 FY 2027.
What to watch
- Whether consolidated operating margin remains above the 14.64% Industrials peer median.
- Whether Advantek moves on from its Rs 4.3 cr Q1FY27 PAT loss toward the full-year PAT-positive outcome stated by management.
- Whether Bushings growth remains above the +34.70% year-on-year rate reported for Q1FY27.