Harsha Engineers International reports a 25% revenue increase in Q1 FY27 driven by core business demand and export growth, despite margin pressures from input costs and overseas losses, as it plans significant capacity expansion and explores new markets in solar, wind, and electric mobility.
Harsha Engineers International said its first-quarter fiscal 2027 results were lifted by broad-based demand in its core engineering business, even as higher input costs and overseas losses weighed on margins. The company reported 25% year-on-year consolidated revenue growth, helped by a 21% rise in its India engineering business and stronger exports to Europe, the US and other markets, according to its earnings call summary and related analyst reports.
The strongest momentum came from bushings and stampings, which increased 35% and 31% respectively, supported by product conversion gains, new development work and a wider pipeline of orders. Management said it remains confident of more than 30% growth in both categories this year. Large-sized cages were weaker in the quarter because a new facility is still ramping up, but the company said it has strong visibility there and expects the segment to rebound sharply over the rest of the year.
Profitability came under pressure from an 8% increase in raw material costs, which Harsha said it can recover only with a lag of one to two quarters through pass-through pricing. The company also took a foreign exchange hit of about ₹4 crore, while indirect materials such as oil, chemicals and packing supplies added about ₹3 crore to costs. Harsha Romania continued to post operating losses, although management said losses in Romania and China should narrow materially this year as product mix improves and newer operations mature.
Chief executive Vishal Rangwala said 20% growth for the full year would be “a very tough stretch”, with the company instead expecting mid-to-high teens growth in India and low-teens consolidated growth. The company is also investing in capacity, with combined capital expenditure over the next 18 to 24 months expected to reach ₹180 crore to ₹200 crore, including the Baila expansion and a China brownfield project slated for commissioning in the third quarter of fiscal 2028. Harsha also sees solar as a project-driven business that should generate about ₹200 crore in revenue this year, while newer opportunities in wind, rail, aerospace and electric mobility remain in development.
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