Harsha Engineers Q2 FY27 Net Profit Rises to Rs 44.5 Crore as Domestic Demand Expands EBITDA Margin to 18.9%
Precision bearing cage manufacturer Harsha Engineers International Ltd. posted strong financial results for the second quarter of FY27, led by robust growth in its domestic engineering business that insulated earnings from global demand sluggishness.
Consolidated engineering revenue reached Rs 428.17 crore in Q2 FY27, marking a 17.9% year-over-year rise from Rs 363.12 crore reported in the corresponding period of the previous fiscal year. Sequentially, engineering revenue inched up 1.7% from Rs 421.08 crore in Q1 FY27.
Domestic Growth Offsets Global Headwinds
The primary catalyst for the Ahmedabad-based manufacturer remained its domestic franchise, which logged a 24.1% year-over-year increase in engineering revenue during the quarter. The India engineering division—comprising Harsha Engineers International and Harsha Engineers Advantek—also recorded 23% top-line growth across the first half of FY27.
Management noted that broad-based demand momentum in India was sustained across key user industries, including automotive and general industrial sectors, supported by client off-take in core product lines such as bearing cages, bronze bushings, and precision stampings.
Conversely, international subsidiaries and the solar EPC segment faced mild headwinds, weighing on sequential revenue expansion. Slower momentum across European and Chinese operations continued to act as a drag on consolidated metrics, keeping management's full-year consolidated revenue growth guidance at 10% to 12%.
Operational Margins and Profitability
Profitability metrics strengthened across the board, aided by improved product mix, operational efficiencies, and the pass-through of metal raw material costs:
- Consolidated EBITDA: Rose 28.8% year-over-year to Rs 81.12 crore from Rs 62.96 crore in Q2 FY26.
- EBITDA Margin: Expanded by 160 basis points to 18.9%, up from 17.3% in the year-ago quarter and recovering from 16.6% in Q1 FY27.
- Profit After Tax (PAT): Increased 24.6% to Rs 44.48 crore compared to Rs 35.70 crore in Q2 FY26, yielding a net margin of 10.4%.
Market Reaction and Outlook
Following the announcement, shares of Harsha Engineers climbed 4.81% to close at Rs 461.20 on the Indian bourses, edging near the upper band of their 52-week range of Rs 313.30 to Rs 484.80.
Harsha Engineers commands a 50% to 60% share of India's organized precision bearing cage market and roughly 6.5% of the global organized market. Market participants remain focused on the company's capex ramp-up in bronze bushings and large-size cages, as well as the path to operational breakeven for its overseas subsidiaries.
