As of , Ellenbarrie Industrial Gases Ltd (Industrial Gas) has a deep value score of 46/100 (rated Average). 1Y return vs Nifty 500: -53%.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Capacity Addition: 220 TPD
Impact: ₹100-110 crore revenue potential
“For the 220 TPD merchant plant 160 crore capex say around 100 to 110 crore revenue potential how much revenue has started.”
What: Specialty Gas Mix: Not Given
Impact: Higher margin profile
“We would like to increase our portfolio to some of these speciality gases which are used especially in the solar industry.”
What: New Regions: North and West India
“The second one is a merchant plant in Northern India and the third one is a merchant plant... in Western India.”
Earnings deceleration risks from management commentary
Trigger: Softer environment in steel and oversupply of argon into the market from captive gas plants operated by steel manufacturers.
Impact: PAT impact: 7% margin drop
Management view: Management expects prices to normalize as the macro environment for steel improves.
Monitor: commodity
Trigger: Roll back of US tariffs changes the general mood of business and government.
Management view: Management remains constructive and expects the environment to improve with recent trade deals.
Monitor: geopolitical
Trigger: Government recognition of medical oxygen as a critical product.
Impact: PAT impact: Positive for affordability
Management view: Management is thankful for the change as it makes the product more affordable for end customers.
Monitor: regulatory
Key quotes from recent conference calls
“We expect to grow at the CAGR of 20 to 25% over the next four to five years in our core gases segment. [Previous Revenue CAGR guidance]”
“We expect to grow at the CAGR of 20 to 25%... all this while maintaining EBITDA margins of around 40%. [Previous EBITDA Margin guidance]”
“Thirdly, on cost, we are working towards power cost optimization and sustainability by signing up for a renewable energy contract. [Initiative: Renewable Energy Contract]”
“In terms of our expansion into west in FY28 is what we are expecting our plant along with some high purity and speciality gases. [Initiative: Specialty Gases Expansion]”
Headline numbers from the latest earnings call
Revenue
₹813 million
Why: Revenue from operations declined sequentially due to softness in the steel sector and lower sequential volumes.
The sequential decline was primarily driven by a tougher environment in the core steel sector.
EBITDA
₹253 million
Why: Profitability was impacted by low Argon realizations and elevated one-off costs in other expenses.
Margins compressed significantly from 38% in Q2 to 31% in Q3 due to pricing pressure in Argon.
PAT
₹261 million
Why: PAT was impacted by the same operational headwinds affecting EBITDA, including steel sector softness and one-off costs.
Despite sequential weakness, management noted that year-on-year numbers still show growth.
Other Highlights
• Net cash position stood at ₹3,550 million as of Q3 FY26.
• Uluberia 2 merchant plant in West Bengal (220 TPD) was commissioned during the quarter.
• 9-month EBITDA margin remains at 36% despite the Q3 dip.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Capacity Utilisation
86-87%
Why: Sequential decline due to softness in the steel sector.
Argon Revenue Mix
10%
Why: Argon contribution dropped from 13% in Q2 to 10% in Q3 due to a 25% price correction.
Argon Price Correction
25%
Why: Oversupply from captive plants and steel sector weakness.
New Capacity Commissioned
220 TPD
Why: Commissioning of Uluberia 2 merchant plant.
Net Cash Position
₹355 Cr
Market Share
Mid-single digits
Total Addressable Market
₹15,000 Cr
Power Efficiency Focus
Single largest cost item
Why: Newer plants are designed to be more efficient to protect margins.
Forward-looking targets from management for 4-5 years
Revenue Growth Target
22.5%
OPM Guidance
40%
20-25% CAGR
REAFFIRMED
₹2,500 million in FY26; ₹2,000 million in FY27
Expansion projects including East India on-site and North India merchant plants.
Guidance Changes
East India On-site Commissioning: Q4 FY26 → Q1 FY27
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +19% | +8% | Stable |
| PAT (Net Profit) | +37% | +24% | Accelerating |
| OPM | 31.0% | -900 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Ellenbarrie Industrial Gases Ltd has a deep value score of 46/100 (rated Average). This score is calculated from three components
Ellenbarrie Industrial Gases Ltd's quarterly profit (PAT) growth trajectory
Ellenbarrie Industrial Gases Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Ellenbarrie Industrial Gases Ltd's earnings momentum is Decelerating — growth rate is slowing.
Ellenbarrie Industrial Gases Ltd's valuation metrics
Ellenbarrie Industrial Gases Ltd's revenue and margin trends
Ellenbarrie Industrial Gases Ltd's trailing twelve month (TTM) performance
Ellenbarrie Industrial Gases Ltd key facts
Ellenbarrie Industrial Gases Ltd shows limited deep value signals currently — score is 46/100 (Average). Monitor for improvement.
Industrial Gas deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Ellenbarrie Industrial Gases Ltd has 3 key growth catalysts identified from recent earnings analysis
Ellenbarrie Industrial Gases Ltd has 3 key risks worth monitoring
In Q3 FY26, Ellenbarrie Industrial Gases Ltd's management highlighted
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
