Elgi Equipments (ELGIEQUIP) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue grew 23% year-over-year, with 7% of growth attributed to exchange rates; EBITDA increased by 28% year-over-year, despite higher employee and other expenses.

• Growth was broad-based across India (28%), North America (37%), Europe (21%), and Australia (17%).

• PAT margin improved to 9.7% in Q1 FY27, with basic EPS at 3.28; PAT remained roughly similar to Q1 last year, impacted by exceptional reorganization costs.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board and reviewed by statutory auditors, with no material misstatements identified.

• Net cash position remains strong, with significant CapEx including campus relocation and land purchase in Italy.

Financial highlights

• Q1 FY27 consolidated revenue: INR 10,622 Mn, up from INR 8,667 Mn; EBITDA: INR 1,553 Mn, up from INR 1,216 Mn; EBITDA margin at 14.6%.

• Standalone revenue: INR 6,448 Mn, up from INR 5,027 Mn; standalone net profit: INR 904 Mn, up from INR 815 Mn.

• EBIT for Q1 FY27: INR 1,306 Mn, EBIT margin at 12.3%.

• Aftermarket revenue contributes 22%-23% globally and 28%-30% in India; global benchmark is 35%-40%.

• Warranty costs are less than 1% of revenue, lower than industry peers.

Outlook and guidance

• Price corrections to offset raw material cost increases will be reflected more fully in Q3.

• Margin improvement expected to continue, targeting 18% EBITDA by 2031 and 20% longer-term, barring unforeseen tariff shocks.

• Demand in India remains strong, with high inquiry levels and longer gestation for order finalization.

• Sales growth driven by both volume and favorable exchange rates.

• Cost increases and product mix changes impacted contribution margins.