India · Delayed Price · Currency is INR Elgi Equipments Earnings Call Transcripts
Fiscal Year 2026
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Revenue grew 12% and PBT rose 17% year-over-year, driven by broad-based regional growth and strong cash generation. Strategic investments in IT, organizational restructuring, and new product launches position the business for continued growth, despite commodity price and geopolitical risks.
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A new five-year plan targets $750 million revenue by FY 2031, driven by market share gains, new products, and a rising share of aftermarket revenue. Recent innovations like Demand Match and expanded in-house manufacturing are boosting margins and competitiveness, while digital and ESG initiatives support operational excellence.
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Sales grew 18% year-over-year with improved profitability, though EBITDA was impacted by higher employee and restructuring costs. U.S. tariff mitigation and cost initiatives are expected to boost margins next year, while Europe focuses on cost reduction for profitability. Inventory reduction and new product launches are key priorities.
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Revenue grew 11% year-over-year, but EBITDA margin declined to 14.9% due to strategic investments and higher employee costs. Europe remains a challenge with negative EBITDA, while North America and India show growth. U.S. tariff impacts are mitigated, and new product launches and cost initiatives are expected to support future performance.
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Revenue grew 8% year-over-year with strong profitability, though higher expenses from strategic initiatives impacted EBITDA. U.S. tariffs and European economic stagnation pose risks, but growth in India, Middle East, and Africa remains robust. $450M revenue guidance is maintained.
Fiscal Year 2025
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Q4 and FY2025 saw 15% revenue growth, strong India and US performance, and robust cash generation, though one-time costs impacted margins. FY2026 guidance targets $450M revenue, 16% EBITDA, and 30% ROCE, with India expected to lead growth amid tariff and Europe uncertainties.
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Revenue grew 3% year-over-year, but EBITDA was impacted by one-time costs. New patented stabilizer technology and a low-cost compressor range are expected to drive future growth, with strong cash position and improved working capital. Domestic and international markets show mixed trends.
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EBITDA was slightly lower year-over-year due to higher overheads and strategic investments, but revenue grew 9% with strong performance in India and improving trends in Europe and North America. Q3 is expected to match Q2, with Q4 likely better, despite headwinds in India’s water well segment.
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EBITDA and revenue grew strongly year-over-year, led by volume gains and robust India performance, though North America lagged due to market contraction and ERP issues. Inventory and cash flow were impacted by global logistics disruptions, but recovery and further growth are expected in coming quarters.