HARSHA - Harsha Engg Intl

📊 NSE: HARSHA 🏢 Auto Ancillaries 📅 Last Updated: 12/13/2025 22:49

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 1.10% to INR 1,407.65 Cr in FY25. In H1 FY26, the Bronze Bushing vertical reported 25% growth (INR 55 Cr) and Large-sized cages grew 33% (INR 27 Cr). India Engineering business achieved 10% top-line growth on an H1 to H1 basis.

Geographic Revenue Split

Harsha China reported a turnover of approximately INR 65 Cr in H1 FY26. India Engineering business grew 10% YoY in H1 FY26. Specific % splits for other regions like Europe are not disclosed, though Harsha Engineers Europe SRL is a wholly-owned subsidiary.

Profitability Margins

Consolidated Net Profit Ratio declined from 8.00% in FY24 to 6.34% in FY25. Standalone PAT fell 72.14% to INR 35.36 Cr in FY25 due to impairment losses and bad debt write-offs.

EBITDA Margin

Harsha China reported a positive EBITDA margin of approximately 12% in H1 FY26. Consolidated EBITDA and PAT margins saw a sequential reduction in H1 FY26 due to an aggregate loss of INR 5.7 Cr at Harsha Advantek.

Capital Expenditure

Harsha Advantek (Bhayla plant) came into production in Q1 FY26, incurring an additional charge of over INR 4.2 Cr in interest and depreciation due to new capacity buildup.

Credit Rating & Borrowing

Credit rating is CARE AA-; Stable for long-term and CARE A1+ for short-term bank facilities (INR 447.87 Cr). The company fully prepaid its term debt as of March 2023.

⚙️ Operational Drivers

Raw Materials

Bronze, steel, and brass (implied by bearing cage and bushing products). Specific % of total cost for each is not disclosed.

Capacity Expansion

Harsha Advantek (Bhayla plant) commissioned in Q1 FY26; optimum capacity utilization is expected to reach breakeven within 1 year.

Raw Material Costs

Delayed cost pass-through in the India Engineering segment impacted margins in H1 FY26. Specific YoY cost change % is not disclosed.

Manufacturing Efficiency

Harsha Advantek is currently operating at suboptimal revenue levels (H1 FY26) as it scales up production. China operations are performing consistently with a 12% EBITDA.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth is driven by scaling the bronze bushing vertical (targeting 30% growth in FY26), expanding large-sized cages (33% current growth), and turning around overseas subsidiaries. China is already at 12% EBITDA, and Advantek is expected to be profitable within 1 year.

Products & Services

Bearing cages (bronze, steel, brass), precision stampings, bronze bushings, and solar EPC services.

Brand Portfolio

Harsha, Harsha Advantek.

New Products/Services

Bronze bushings and large-sized cages are the primary new growth drivers, with bushings expected to contribute significantly to FY26 revenue.

Market Expansion

Focus on Japan-based customers (7% growth in H1 FY26 to INR 35 Cr) and turning around the European subsidiary to reach positive territory.

Strategic Alliances

Harsha Engineers Advantek Limited and Harsha Engineers Europe SRL are 100% wholly-owned subsidiaries.

🌍 External Factors

Industry Trends

The industry is seeing robust demand for specialized components like large-sized cages (33% growth) and bronze bushings (25% growth), indicating a shift toward high-precision industrial applications.

Competitive Landscape

Competes in the global bearing component market, specifically targeting high-growth segments like large-sized cages and bushings.

Competitive Moat

Moat is based on specialized engineering capabilities in bearing cages and a global manufacturing footprint (India, China, Europe), allowing them to serve global bearing majors locally.