Elgi Equipments (ELGIEQUIP) Q4 24/25 earnings summary

Executive summary

• Q4 and FY2025 revenue grew 15% year-over-year, with strong performance in India, North America, and Europe, while Southeast Asia lagged.

• Profit before tax for Q4 FY25 was INR 1,403 million, up 27% year-over-year, but EBITDA was below expectations due to one-time expenses and increased employee costs.

• Profitability ratios remain strong, with robust net cash position and improved receivables and inventory management.

• Audited standalone and consolidated financial results for FY25 were approved with unmodified audit opinions.

• The business is primarily organized into Air Compressors and Automotive Equipment segments.

Financial highlights

• Q4 FY25 sales were INR 9,929 million, with FY25 total sales at INR 35,104 million; consolidated net profit for FY25 was INR 3,502 million.

• Gross margin for Q4 was 49%, down from 51% last year due to one-time inventory cleanup costs.

• Q4 FY25 EBITDA was INR 1,491 million; FY25 EBITDA was INR 5,305 million.

• Q4 FY25 EPS was 3.23; FY25 EPS was 11.08.

• Board recommended a dividend of ₹2.20 per share for FY25.

Outlook and guidance

• FY2026 guidance targets $450 million in revenue, 16% EBITDA, and 30% ROCE, in line with five-year targets.

• India expected to grow low to mid double digits if macro conditions remain stable; international growth projected at single digits due to tariff and Europe uncertainties.

• New products, including stabilizers and machines targeting Chinese imports, are expected to launch fully by Q3 FY2026.

• Board's dividend recommendation signals confidence in ongoing performance.