Harsha Engineers International Limited (harsha) Q1 FY27: Revenue Up 25.2% YOY

Harsha Engineers International Limited (HARSHA) has announced its financial results for the first quarter of FY27, showing a robust 25.2% year-on-year revenue growth. The company’s consolidated revenue reflects continued strong demand trends in India, as well as improving demand for industrials in key markets of Europe and Rest of World (ROW).

India Engineering Business Performance

The India Engineering business, comprising HEIL and Advantek, posted a 21% growth in Q1 FY27 on a year-on-year basis. However, the compression in EBITDA and PAT margins in the India Engineering business is attributed to a raw material cost increase of around 6 to 8% during the quarter, a forex loss of around Rs. 4 crores due to the settlement of cash flow hedges from previous quarters, and higher costs of indirect materials like oil and packing material by around Rs. 3 crores.

Advantek’s Financials

WOS Harsha Advantek reported revenues of Rs. 30 crores in Q1 FY27, showing a 7% growth on a quarter-on-quarter basis. Advantek’s EBITDA was slightly lower in Q1 FY27, resulting in a PAT loss of Rs. 4.3 crores. However, on a full-year basis, Advantek is expected to be PAT positive.

Sales of Bushings stood at Rs. 34 crores in Q1 FY27, representing 34.7% growth on a year-on-year basis and are on track to achieve over 30% growth over FY 2026. Sales of Stampings stood at Rs. 19 crores in Q1 FY27, showing a growth of 31% on a year-on-year basis and are on track to achieve over 30% growth over FY 2026. Although sales of large size cages stood at Rs. 10 crores in Q1 FY27, showing a flattish sale on a year-on-year basis, significant offtake in demand is expected to achieve over 30% growth compared to the previous year FY 2026.

Harsha Romania’s continued underperformance remains a concern for the company.

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of Harsha Engineers International Limited

Harsha Engineers International Limited belongs to the Industrials › Tools & Accessories sector. Here’s a quick read on where the business and the stock stand today.

Harsha holds in the upper half of its 52-week range, a sign the market backs the stock. The PEG reaches 3.17. The stock trades on brand and index weight, not on growth. Thin margins at 9.5% leave limited room for error — any demand softness or cost spike hits the bottom line hard. The stock trades at 77% of its 52-week range — near its best levels of the year. Clearly, the market pays a premium for this name. The stock rises 4.9% in three months on 5.8% revenue growth. As a result, the market gives it more credit than the fundamentals strictly justify. Watch the next quarterly results. If growth accelerates, the move makes sense. If not, expect some gains to unwind. Check Fundamentals of Harsha Engineers International Limited.