In , Elgi Equipments Ltd (Compressors) is outperforming Nifty 500 with +16.5% relative strength. Fundamentals: Average. On a 5-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Aftermarket Revenue %: 28% in India
Impact: 60% margin in aftermarket vs 10% in equipment
“If we make 10% in equipment, we'll probably make 60% in aftermarket... as you add and install base, that's where the growth really comes from.”
What: Energy Efficiency: 6-17% gain
Impact: Higher price realization
“Demand=Match, like I said, has increased our price realization... all supplies to those markets will also be Demand=Match as standard.”
What: US Revenue Growth: 12%
“The American market is expected to grow at 1.5% and we are growing at around 12%. So again, we will expect to grow share.”
What: Revenue growth of 18% YoY
“our sales has grown by 18%... the contribution from India has been both on volume, primarily volume has been very positive that it is the largest contributor.”
Earnings deceleration risks from management commentary
Trigger: Tariffs on portable compressors shipped from Europe to the US increased costs.
Impact: PAT impact: 1% EBITDA margin hit
Management view: Mitigated by price increases and expected tariff reduction from 50% to 18%.
Monitor: geopolitical
Trigger: Mine strikes in Chile and disruptions in Indonesia affecting global supply.
Management view: Passing on costs to the market where possible and reducing internal costs elsewhere.
Monitor: commodity
Trigger: One-time costs for letting people go in Europe and hiring for digital initiatives.
Impact: PAT impact: ₹600 million EBITDA impact
Management view: Costs expected to taper off in 1.5 to 2 years as advisory and software costs exit.
Monitor: labor
Key quotes from recent conference calls
“set a target for ourselves at USD 450 mn and we had considered a growth rate of 10% CAGR. [Previous Revenue Growth guidance]”
“Demand=Match is for the fixed speed... The customer savings has been anywhere between 6% to 17%. This is the kind of savings that the customer has. [Initiative: Demand=Match Technology]”
“the impact on tariffs is almost 1%... in Q3 we had the fresh inventory which was which had the full impact of that 50%. [Risk (geopolitical): HIGH]”
“this is a matter of concern for us... especially copper. When you look at it, there are mine strikes in Chile and there are some disruptions in some mines in Indonesia. [Risk (commodity): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹1,000 Crore
Why: Growth was driven by volume-led performance in India and replenishment-based exports to subsidiaries despite challenges in Southeast Asia.
The company hit a milestone revenue figure of ₹1,000 crore for the first time in a single quarter.
EBITDA
₹1,400 Million
Why: Margins were impacted by a 3% increase in employee costs due to European restructuring and investments in digital and finance transformation initiatives.
EBITDA missed management's internal expectations of ₹2,000 million due to one-time reorganization costs.
Other Highlights
• PBT grew 30% YoY despite tariff impacts and higher employee costs.
• India and Rest of World revenue split remains stable at 50-50.
• Compressors contribute over 90% of total sales mix.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Export Revenue %
50%
Why: The split between India and the rest of the world remains stable.
Aftermarket Revenue % (India)
28-30%
Why: High installed base in India drives significant recurring revenue.
Aftermarket Revenue % (International)
12-15%
Why: Lower installed base in international markets compared to India.
Capacity Utilisation
Not Given
Raw Material % of Cost
Not Given
Inventory Level
6 months
Why: Excess inventory built up due to optimistic sales forecasts and lead times.
Service Revenue Mix
Not Given
Working Capital Cycle
Not Given
Forward-looking targets from management for FY31
OPM Guidance
18%
Capex Plan
₹600 Cr
USD 750 million
Targeting 18% EBITDA margin by FY31
₹500-600 Crore
Shifting facility from city campus to a new campus over 5 years.
India growth expected at low double digits
Guidance Changes
Outside India Growth: 13% → 10%
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +18% | +12% | Stable |
| PAT (Net Profit) | +17% | +25% | Stable |
| OPM | 14.0% | 0 bps | Stable |
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.
Elgi Equipments Ltd's latest quarterly results (Dec 2025) show
Elgi Equipments Ltd's profit is growing with an stable trend.
Elgi Equipments Ltd's revenue growth trend is stable.
Elgi Equipments Ltd's operating margin is stable.
Elgi Equipments Ltd's long-term compounding rates
Elgi Equipments Ltd's earnings growth is stable with mixed signals on a sequential basis.
Elgi Equipments Ltd's trailing twelve month (TTM) performance
Elgi Equipments Ltd appears slightly undervalued based on our fair value analysis.
Elgi Equipments Ltd's current PE ratio is 42.3x.
Elgi Equipments Ltd's current PE is 42.3x.
Elgi Equipments Ltd's price-to-book ratio is 8.7x.
Elgi Equipments Ltd is rated Average with a fundamental score of 44.56/100. This score is calculated from objective financial metrics
Elgi Equipments Ltd has a debt-to-equity ratio of N/A.
Elgi Equipments Ltd's return ratios over recent years
Elgi Equipments Ltd's operating cash flow is positive (FY2025).
Elgi Equipments Ltd's current dividend yield is 0.40%.
Elgi Equipments Ltd's shareholding pattern (Mar 2026)
Elgi Equipments Ltd's promoter holding has remained stable recently.
Elgi Equipments Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Elgi Equipments Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
Elgi Equipments Ltd has 4 key growth catalysts identified from recent earnings analysis
Elgi Equipments Ltd has 3 key risks worth monitoring
In Q3 FY26, Elgi Equipments Ltd's management highlighted
Elgi Equipments Ltd's management has provided the following forward guidance for FY31
Elgi Equipments Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Elgi Equipments Ltd may be worth studying
Elgi Equipments Ltd investment thesis summary:
Elgi Equipments Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
