Transcript of Earning Call Q2FY2027

HEIL/SE-45/2026-27 November 6, 2026 To, To, The Manager (Listing), The Manager (Listing), The BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, "Exchange Plaza", C-l, Block - G, Dalal Street, Bandra - Kurla Complex, Bandra (E) Mumbai – 400 001 Mumbai – 400 051 Script Code No. : 543600 Symbol : HARSHA Dear Sir/Madam, Sub : Transcript of Earning Call for the quarter ended September 30, 2026 Ref : Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 With reference to subject matter and pursuant to regulation 30 of the SEBI ((Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the transcript of the earning call for the quarter ended September 30, 2026 conducted conducted on November 4, 2026, subsequent to the meeting of the Board of Directors held on November 3, 2026. The above information is also available on the website of the Company at www.harshaengineers.com You are requested to take the same on your record. Yours faithfully, FOR HARSHA ENGINEERS INTERNATIONAL LIMITED Kiran Mohanty Company Secretary and Chief Compliance Officer MEM NO. : F9907 Harsha Engineers International Limited CIN : L29307GJ2010PLC063233 Corporate & Registered Office: Sarkhej - Bavla Road, Changodar, Ahmedabad, Sanand - 382213, Gujarat, India. Tel.: +91-2717-618200 Fax: +91-2717-618259 E-mail: sec@harshaengineers.com URL: www.harshaengineers.com “Harsha Engineers International Limited Conference Call” November 04, 2026 MANAGEMENT: MR. VISHAL RANGWALA – CHIEF EXECUTIVE OFFICER – HARSHA ENGINEERS INTERNATIONAL LIMITED MR. MAULIK JASANI – CHIEF FINANCIAL OFFICER – HARSHA ENGINEERS INTERNATIONAL LIMITED MR. SANJAY MAJMUDAR – STRATEGIC ADVISOR, HARSHA ENGINEERS INTERNATIONAL LIMITED Page 1 of 18 Harsha Engineers International Limited November 04, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Harsha Engineers International Limited Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Rangwala, CEO of the company. Thank you, and over to you, sir. Vishal Rangwala: Hi. Good evening to all of you, and welcome to Harsha Engineers Quarter 2 H1 FY 2027 Post Results Update Call. As per our normal practice, I will just talk through how we look at these numbers and what are our thoughts and then Mr. Maulik Jasani will take us through more details in the numbers. However, I'm assuming that you would have had a chance to go through the numbers and the presentation. So if I have to summarize our quarter 2 performance in one sentence, I will say it was a business as usual and largely on track. However, let me touch basis on our key business verticals, starting with our India Engineering business. Comprising of Harsha Engineers International as well as our wholly owned subsidiary, Harsha Engineers Advantek. And as you will see from the numbers, we have witnessed a strong top line growth over 24% in quarter 2 with an equally strong 23% in first half on Y-o-Y basis. This growth has come more or less from almost all the key verticals, including Cages, Bushings as well as Stampings. Talking of Cages, I'm happy to state that we have witnessed a decent demand traction, both from industrial as well as automotive segment in India. Similarly, on the export front, we have witnessed continued strong demand coming largely in industrial segment from key geographies of Europe, U.S. as well as Japan and other countries. Again, as announced earlier, the progress on the new resourcing outsourcing project that we had announced last year is quite good, and we expect the commercial sales under this project to commence sometime in quarter 3 and quarter 4 in the current financial year. And the real visibility will start coming in, in quarter 4. Although the sales relating to this project will start in a gradual way. At peak level, the sales can reach a run rate of around INR75 crores per year. And also, we are working on a couple of other resourcing, outsourcing projects from Europe and North America markets. The first project is relatively small, but it is at a fairly advanced stage of development, and we expect the commercial sale to also start somewhere in financial year '27, '28. And second project where we have just commenced initial development and which could start in somewhere financial year '28, '29. Page 2 of 18 Harsha Engineers International Limited November 04, 2026 Again, under the Cage category, we have a strong demand visibility for large-sized Cages, and we expect a significant ramp-up in sales in this segment in second half of financial year 2027, which should result into an overall annual growth of at least 20% in the current financial year in this segment. Similarly, we have started witnessing a decent growth in sales of Cages to our Japan-based customer. And though it's slow, it should definitely pick up speed in coming quarters, which gives us confidence of over 10% to 15% annual growth in this segment. Lastly, as I said, export from India have remained quite strong with our H1 exports at around INR280 crores against annual export of INR480 crores achieved last year. So talking of now Bushings, as I said in the earlier call, I'm confident that we should be able to attain about 30% growth in current financial year in this segment, aided by good demand visibility from key windmill gearbox manufacturing companies. And we have also developed newer designs of Bushings for these customers. We remain very bullish about this segment going forward with our annual sales target of within three, four years to hit about INR300 crores in some time. Similarly, talking about Stampings, we are also seeing a very good traction for our key Stamping components, which include certain specialized railway seal inserts, AC compressor components and certain other automotive components. And we have recently introduced a new category in AC air conditioning segment compressor, which is known as accumulator, which is having a very good demand potential. Thus, we are seeing a fairly confident of seeing over 30% sales growth in this segment in this current financial year compared to revenue sales of about INR72 crores we achieved in FY26. We believe that new products that we are also in a process of developing this segment, the target annual sales again in this segment should reach about INR300 crores over the next four years. Just to conclude, I can say with satisfaction that our India Engineering business is delivering satisfactory performance almost on all fronts. Now coming to Harsha Romania facility. We have internally worked out a strategy of downsizing the operations and correspondingly also reducing the operating cost. However, we will continue to focus on increasing the sales of finished Cages out of our Romania facility. We believe that this will be a good viable model, a medium-term strategy where our target is to arrest operating losses incurred in Romania, which we believe we can achieve by end of current financial year. Therefore, we feel that the next financial year in Romania may contribute a lower level of sales, but it should still be relatively positive contribution to profitability is how we are looking at this. Now talking of China, through quarter 2 FY27, we are a little soft on sequential basis as compared to quarter 1. It has still shown a decent growth on a year-on-year basis, and we expect a reasonably strong performance to continue rest of the year. Though currently, EBITDA in Page 3 of 18 Harsha Engineers International Limited November 04, 2026 China is a single digit, we believe that it should improve going forward given th [Showing first 8,000 characters — download PDF for full document]