Harsha Engineers International (HARSHA IN) – Q4FY26 Result Update – Healthy Q4; Romania revival remains watchful – HOLD
Published on 08 May 2026
Export momentum improved meaningfully across Europe and the US, aided by recovery in industrial activity, lower US import tariffs and increasing wallet share gains with existing customers. Advantek continued to scale up well with improving utilisation at the Bhayla facility, while the planned 2-phase expansion is expected to support the next leg of growth. Romania losses narrowed during FY26 vs FY25, with the turnaround strategy focused on higher share of cages and operational efficiencies, although weakness in the European wind market remains a near-term overhang. The China brownfield expansion remains on track for H2FY28 commissioning and is expected to improve localisation, product mix and profitability. Growth drivers across bushings, large-size cages and stampings continue to remain strong, supported by customer additions, wider applications and rising industrial demand, while Solar EPC is expected to sustain robust growth momentum. The stock is currently trading at a P/E of 22.2x/19.0x on FY27/28E earnings. We roll forward to Mar’28E and maintain ‘HOLD’ rating with a revised TP of INR461 (INR409earlier), valuing the company at a PE of 20x Mar’28E (20x Sep’27E).
