Elgi Equipments LimitedCapital Goods & EngineeringELGIEQUIP
Q1 FY27 earnings callElgi Equipments Limited
Strong volume-driven revenue growth across geographies, driven by superior product technology and efficiency, with management confident of sustaining and improving margins despite raw material cost pressures.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue Growth (YoY) | 23% | — | |
| EBITDA Growth (YoY) | 28% | — | |
| PAT Margin | 9.7% | — | |
| India Revenue Growth | 28% | — | |
| North America Revenue Growth | 37% | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹847.59 Cr+3.1% YoY-2.4% QoQ | ₹80.58 Cr-3.9% YoY-14.9% QoQ | ₹2.55-3.8% YoY-14.7% QoQ |
| Q2 FY25 | ₹868.86 Cr+7.8% YoY+8.5% QoQ | ₹94.72 Cr+3.8% YoY+30% QoQ | ₹2.99+3.5% YoY+30% QoQ |
| Q1 FY25 | ₹801.06 Cr+10.7% YoY-7.5% QoQ | ₹72.84 Cr+20.4% YoY-4.5% QoQ | ₹2.30+20.4% YoY-4.6% QoQ |
| Q4 FY24 | ₹865.94 Cr+3.6% YoY+5.4% QoQ | ₹76.24 Cr-55.2% YoY-9.1% QoQ | ₹2.41-55.2% YoY-9.1% QoQ |
| Q3 FY24 | ₹821.83 Cr+6.4% YoY+1.9% QoQ | ₹83.88 Cr+4.8% YoY-8.1% QoQ | ₹2.65+4.7% YoY-8.3% QoQ |
TL;DR
- Revenue grew 23% YoY in Q1, with 7% from favorable exchange rates.
- EBITDA grew 28% YoY, with margins expected to improve further.
- All geographies grew: India +28%, North America +37%, Europe +21%, Australia +17%.
- Growth was primarily volume-driven, supported by the Demand=Match technology.
- Raw material costs increased 5-6% vs. a planned 3-4% hike; price corrections to take effect from Q2/Q3.
- Aftermarket revenue is ~30% in India and ~15-16% (parts only) globally.
Said on the call
“When you have the know-why, you can build the next products.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Drivers in India | Growth was primarily volume-driven across all verticals, with the Demand=Match technology enabling entry into new customers. No significant product mix change. |
| Raw Material Cost & Pricing | Raw material cost increased 5-6% vs. an anticipated 3-4%; price corrections have been made and will reflect in Q2/Q3 results. Cost reduction efforts are mitigating the impact. |
| Aftermarket Revenue Mix | In India, aftermarket (primarily parts) is ~28-30% of revenue. Globally, parts revenue is ~15-16%. Service is left to distributors and is a larger revenue component in the US. |
| Competitive Edge & Technology | Management states no technology gap vs. global peers, with ~70% of industrial models being the most energy-efficient. Demand=Match is a key differentiator and is being rolled out globally. |
| Margin Outlook and Levers | EBITDA margin is expected to improve via operating leverage, gross margin improvement through cost reduction/re-engineering, and fixed cost rationalization. The long-term target is 18% by FY31. |
| New Segments (EV, Renewable, Semiconductor) | Growth is coming from the ecosystem of these new-age sectors (e.g., factories building EV components), but they are not yet large contributors compared to established industries like textiles or cement. |
Guidance
- Price corrections for raw material cost increases will be seen towards the end of Q2 and more fully in Q3.
- EBITDA margin is expected to continue improving.
- The tier-4 compressor segment launch is on track for this year, with a formal launch in Hyderabad.
- Demand=Match technology will be rolled out globally within the year.
- Long-term EBITDA margin target is 18% by FY31.
Source
Summary written from the transcript filed by Elgi Equipments Limited for the call held on 20 Aug 2026; published 20 Aug 2026, 17:22 IST.