Analysts/Institutional Investor Meet/Con. Call Updates

HEIL/SE-31/2026-27 August 17, 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 June 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 June 30, 2026 conducted after the meeting of Board of Directors held on August 11, 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 Quarter 1 FY27 Earnings Conference Call” August 11, 2026 MANAGEMENT: MR. VISHAL RANGWALA – CHIEF EXECUTIVE OFFICER & WHOLE-TIME DIRECTOR, HARSHA ENGINEERS INTERNATIONAL LIMITED MR. MAULIK JASANI – VICE PRESIDENT (FINANCE), HARSHA ENGINEERS INTERNATIONAL LIMITED MR. SANJAY MAJMUDAR – STRATEGIC ADVISOR, HARSHA ENGINEERS INTERNATIONAL LIMITED Page 1 of 17 Harsha Engineers International Limited August 11, 2026 Moderator: Ladies and gentlemen, good day and welcome to Harsha Engineers International Limited Quarter 1 FY27 Analyst and Investor Earnings 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 “*” then “0” 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, Mr. Rangwala. Vishal Rangwala: Dear friends, welcome to all for our Quarter 1 FY27 post-result update call. As per the normal practice, our CFO, Mr. Maulik Jasani will take you at length through our key numbers. However, I am assuming that most of you would have had a chance to go through the same. At the outset, I am happy to inform that our Quarter 1 FY27 performance has remained satisfactory, in line with our Management plan and expectations, except for some minor aberrations which I will talk about shortly. As you would have seen on a consolidated basis, we have posted a 25% growth in Quarter 1 and year-over-year This growth is largely due to a consistent, strong, top-line growth of around 21% posted by our India Engineering business, which comprises of company HEIL and our wholly own subsidiary company, Harsha Advantek. It is also noteworthy to mention that in spite of the historically established fact that our last quarter performance is generally the strongest. In Quarter 1, our India Engineering business has posted a strong 6% growth, even on a quarter-over-quarter basis. At the same time, you would have seen that while there is an EBITDA and PAT growth in our India Engineering business in Quarter 1 on a YoY basis, there is some degrowth in margin on a quarter-over-quarter basis. This is attributable to three specific factors. 1. In Quarter 1 of this year, our average raw material costs have gone up by around 8%. As you are aware, we follow a pass-through mechanism in most of our systems. However, there will be a lag of one or two quarters. Thus, we should be able to pass through this cost increase in the subsequent quarter. 2. Another factor which has impacted the margin of India Engineering business is foreign exchange loss of around Rs. 4 crores, which is due to certain technical accounting reasons. As per IndAS provisions, foreign currency fluctuations relating to FX cash flow hedges are parked in other comprehensive income till they are realized and settled. The FX losses of around Rs. 4 crores is due to this accounting effect of realization of cash flow hedges lost in the current quarter. However, going forward, we do not expect the material adverse impact on the accounts. Page 2 of 17 Harsha Engineers International Limited August 11, 2026 3. Specific reason is also an increase in our indirect material costs like oil, chemical, packing material due to inflationary pressure. As you are aware, the war broke out during the 1st Quarter and we all saw that. So, this has increased our cost in Quarter 1 by approximately Rs. 3 crores. However, the most significant impact is the raw material cost increase pending pass-through as explained above, which will be normalized going forward. Now, talking about our specific growth components: I am happy to state that our primary product, which is Cages, we are continuing to see good demand, traction and offtake both in India and outside India. In India, this is driven by a good demand for Cages from our customers whose offtake has increased matching with their own growth plan. This includes Cages demand for facilities recently set up by our MNC customers in India. Over and above this, we are also seeing a good traction from other major Indian bearing customers. We believe this reflects a continued strong growth in the Indian domestic market aided by good industrial demand as well as demand from automobile sectors. A part of this also is attributable to increased global demand witnessed by our key bearing customers. We are also seeing a strong traction in export from India. Our export from India in Quarter 1 FY27 stood at Rs. 139 crores. We have reported almost 22% growth on a YoY basis and 11% growth on a quarter-over-quarter basis. We are also seeing good growth in Europe, US and all other key markets backed by continued increase in industrial demand in geographies. Now, talking of our key growth driver: First and foremost, sales of Bushing in Quarter 1 stood at around Rs. 34 crores reflecting almost 35% growth year-over-year basis. We have strong visibility on this order and have good pipeline. So, fairly confident of achieving targeted sales growth of Bushing around 30% this year against last year's Rs. 127 crores. Equally encouraging is the Stamping sales, which stood at around Rs. 90 crores in Quarter 1. So, it's showing year-over-year basis about 31% growth and we have quite a few products which are either developed or under development specifically in the category of white goods things like AC compressor components and so on, as well as Railways, Seals and other automotive Stamping products for which we have been developing over the past few months, which gives us confidence that we could achieve about 30% growth this year as well in the Stamping against the sales of Rs. 60 crores last year. We are also witnessing a strong demand offtake in the segment of large-size Cages. So, Quarter 1 sales appear to be lower at around Rs. 10 crores. We believe that order book on hand and Page 3 of 17 Harsha Engineers International Limited August 11, 2026 pipeline in this segment basis of this, we should achieve a good 50% growth in spite of 1st Quarter numbers and financial year. Over the last year, we did about Rs. 49 crores. Talking of Japanese customers: Our Quarter 1 FY27 sales stood at around Rs. 21 crores, showing about 25% year-over-year growth. However, the full-year basis, we expect only a modest 10% growth in sales of Rs. 72 crores in this segment, given the fact that the entire process of develop [Showing first 8,000 characters — download PDF for full document]