Elin Electronics appliances offset FHP motor sales decline

Elin Electronics Limited reported Q2 FY27 home-appliance revenue of Rs 175.7 crore, up about 25% year on year, while fractional-horsepower motor revenue declined about 23% to Rs 56.8 crore. Elin Electronics’ Rs 35.1 crore increase in home appliances exceeded the Rs 16.7 crore fall in motors, reshaping its electronic manufacturing services revenue mix.

How did Elin Electronics’ home appliances and motors change in Q2 FY27?

Elin Electronics’ home-appliance revenue rose from Rs 140.6 crore in Q2 FY26 to Rs 175.7 crore in Q2 FY27, while fractional-horsepower (FHP) motor revenue declined from Rs 73.5 crore to Rs 56.8 crore. The appliance business added Rs 35.1 crore of revenue, whereas FHP motors reduced revenue by Rs 16.7 crore.

Home Appliances became the largest electronic manufacturing services (EMS) segment in Q2 FY27, generating Rs 175.7 crore of the Rs 323.1 crore EMS total. It had generated Rs 140.6 crore of Rs 296.6 crore a year earlier, while FHP Motors’ contribution fell to Rs 56.8 crore from Rs 73.5 crore.

The mix change also appeared in the first half. Home Appliances increased by Rs 77.1 crore to Rs 286.3 crore in H1 FY27, whereas FHP Motors fell by Rs 32.5 crore to Rs 102.4 crore. Total EMS revenue still increased by Rs 82.5 crore to Rs 604.6 crore over the same periods.

Which categories drove Elin Electronics’ home-appliance growth?

Elin Electronics’ kitchen and home-care revenue increased about 25% year on year to Rs 120.8 crore in Q2 FY27, while personal-care revenue also rose about 25% to Rs 55 crore. Kitchen and home care accounted for Rs 23.1 crore of the total Rs 35.1 crore quarterly increase in Home Appliances, and personal care accounted for Rs 12.1 crore.

Management attributed kitchen and home-care growth to higher year-on-year volumes in irons and mixer grinders, while describing other categories as largely flat. It attributed personal-care growth to better volumes in hair dryers, sterilizers and heated hair brushes. Elin Electronics also added EDT as a personal-care customer during the quarter and said it participated in government tenders in that category.

Home Appliances also rose sequentially, from Rs 110.6 crore in Q1 FY27 to Rs 175.7 crore in Q2 FY27. Kitchen and home care increased from Rs 73.2 crore to Rs 120.8 crore, while personal care rose from Rs 37.4 crore to Rs 55 crore. The Q2 Home Appliances total was above Lighting, Fans & Switches at Rs 77.8 crore and FHP Motors at Rs 56.8 crore.

Why did Elin Electronics’ FHP motor sales decline?

Elin Electronics’ FHP motor revenue declined because growth in chimney-motor volumes was offset by lower mixer-grinder motor volumes, according to management. Consumer-durables motors, comprising mixer grinders, hand blenders and chimneys, declined from Rs 66 crore in Q2 FY26 to Rs 53.1 crore in Q2 FY27.

Fan-motor revenue fell from Rs 5.4 crore to Rs 2.5 crore over the same quarters, while the others category declined from Rs 2 crore to Rs 1.3 crore. In H1 FY27, consumer-durables motors generated Rs 92.6 crore against Rs 113.9 crore a year earlier, and fan motors generated Rs 4.4 crore against Rs 12.8 crore.

Management said the others category includes sales of synchronous motors and terminal blocks. It said the category was affected after most customers shut production in March 2026 because of a gas crisis caused by war. The category produced Rs 1.3 crore in Q2 FY27, below Rs 4.1 crore in Q1 FY27.

Did the revenue mix change improve Elin Electronics’ profitability?

Elin Electronics’ Q2 FY27 revenue rose about 10% year on year to Rs 413.4 crore, but earnings before interest, tax, depreciation and amortisation (EBITDA) declined from Rs 20.4 crore to Rs 14.1 crore. EBITDA margin declined to 3.4% from 5.4%, despite management saying the revenue increase was led by Home Appliances.

Management said sales realisations improved because of material-price inflation, but it could not fully pass higher raw-material costs to customers. It also cited adverse sales mix, inflation in polymers and metals, and depreciation of the Indian rupee against the US dollar. Cost of material consumed rose to 78.1% of revenue from 76.0%, an increase of 2.1 percentage points.

In H1 FY27, revenue increased to Rs 776.2 crore from Rs 670 crore, while EBITDA declined to Rs 18.1 crore from Rs 37.9 crore. EBITDA margin was 2.3%, against 5.7% in H1 FY26, and profit before exceptional item was nil versus Rs 26.5 crore. Higher appliance revenue therefore supported turnover without preventing lower reported operating profitability.

What is Elin Electronics’ outlook for appliances, fans and capital spending?

Management has guided for FY27 revenue growth of 10% to 15% over FY26, largely led by the Home Appliances and Fans segments. It did not provide EBITDA-margin guidance, saying geopolitical volatility was causing fluctuations in raw-material costs.

In lighting, management said it added five customers and expected them to ramp up over the next several quarters. Lighting, Fans & Switches revenue was Rs 77.8 crore in Q2 FY27, compared with Rs 72.4 crore a year earlier and Rs 106 crore in Q1 FY27. Lighting contributed Rs 54.4 crore and fans contributed Rs 14.2 crore in Q2 FY27.

Elin Electronics reported H1 FY27 capital expenditure of Rs 77.5 crore across Ghaziabad, Bhiwadi, Baddi and Goa, including Rs 64.8 crore at Bhiwadi. It said the Bhiwadi plant was capitalised in September 2026 and machinery additions included automation of a motor assembly line. Management’s FY27 capex guidance is Rs 22 crore for scaling existing business, plus marginal incremental spending at Bhiwadi, and its working-capital target is about 50 days.

Conclusion

Elin Electronics’ Q2 FY27 segment data show that Home Appliances, led by kitchen and home care, more than offset the absolute revenue decline in FHP Motors. The resulting mix helped lift total revenue to Rs 413.4 crore, but higher material costs and the stated adverse mix coincided with a 2.0-percentage-point decline in EBITDA margin to 3.4%.

The next disclosed indicators are the planned ramp-up of five new lighting customers, the ability of chimney motors to offset mixer-grinder motor weakness, and progress toward management’s FY27 revenue-growth guidance of 10% to 15%. Raw-material-cost movements, the about-50-day working-capital target and capital spending following Bhiwadi’s September 2026 capitalisation will also be relevant to subsequent updates.