India · Delayed Price · Currency is INR Elgi Equipments Earnings Call Transcripts
Fiscal Year 2026
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Set a new five-year target of $750 million revenue by FY 2031, focusing on market share gains, product innovation, and aftermarket growth. Achieved 11% revenue growth this year, with stable profits and major investments in digital, manufacturing, and ESG. Demand Match technology and expanded product lines are expected to drive future margins and competitiveness.
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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 higher costs and special initiatives. Europe remains challenging, while North America and India show growth. Tariff risks are mitigated, and new product launches and cost controls are expected to support future profitability.
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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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Q3 saw 3% revenue growth but lower PBT due to one-time costs, with strong cash flow and improved working capital. New patented compressor technology and a low-cost product line are set to drive future growth, while Europe and North America are on track for EBITDA breakeven.
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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 India and broad-based volume gains, though North America lagged due to ERP and market issues. Inventory and cash flow were impacted by global logistics disruptions, but outlook remains positive with ongoing consulting, digital, and capacity investments.