Elgi Equipments (ELGIEQUIP) Q1 25/26 earnings summary

Executive summary

• Revenue grew 8% year-over-year in Q1 FY26, reaching INR 8,667 million, with strong contribution and gross profits maintained despite higher employee and other expenses from ongoing strategic initiatives.

• Profit before tax (PBT) increased 18% year-over-year to INR 1,307 million, supported by strong treasury management and a healthy cash position.

• Net profit attributable to owners for Q1 FY26 was INR 856 million, up from INR 728 million in Q1 FY25.

• Sales expanded across India, North America, Middle East, Brazil, and Southeast Asia, with all regions except Europe and Australia seeing growth.

• Working capital initiatives are beginning to show results, with further improvements in cash position anticipated.

Financial highlights

• Q1 FY26 revenue was INR 8,667 million, up from INR 8,011 million in Q1 FY25; EBITDA for the quarter was INR 1,216 million, below the expected INR 1,500 million due to increased employee and other expenses.

• EBITDA margin declined to 14.0% from 14.5% year-over-year.

• PAT for Q1 FY26 was INR 856 million, up from INR 728 million in Q1 FY25; basic EPS increased to 2.71 from 2.30 year-over-year.

• Net cash position improved to INR 4,745 million as of June 2025, up from INR 2,034 million in June 2024.

• Sales mix across businesses and geographies remained stable, fluctuating only 2-3% quarter-to-quarter.

Outlook and guidance

• Guidance of $450 million revenue for the year remains on track, barring significant currency fluctuations.

• Confident of regaining growth in Europe and Australia by Q3 and Q4, with continued strong performance in India, Middle East, and Africa.

• Sales growth momentum observed across multiple regions, indicating a positive business outlook.

• The business continues to focus on manufacturing and sale of compressors, with no other reportable segments in standalone results.

• The group is organized into Air Compressors and Automotive Equipment segments for consolidated reporting.