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$EMCO Emco Industries Limited (EMCO): FY25 & 1QFY26Corporate Briefing Takeaways – By Taurus Research

Taurus Securities
$EMCO Emco Industries Limited
Rs. 51.53 -0.50%
  • Emco Industries Limited (EMCO) principal activity is manufacturing and marketing products required for transmission and distribution lines, and substations.
  • During FY25, domestic demand for EMCO’s products was sluggish because of fiscal tightening in public sector spending. The Management reported that the budget allocated to DISCOs by the Ministry of Energy was only 25% of what it has historically been. The Management also noted that DISCOs’ tenders can get scrapped after they have been announced and the Company’s margins were under pressure because of import costs and its manufacturing facilities not running at capacity. Further, expanding its export footprint in FY26 has involved introductory pricing strategies which has also pressured margins.