Elgi Equipments Limited has reported its financial results for the financial year ended March 31, 2026, alongside the notice for its 66th Annual General Meeting (AGM). The company recorded a 23% year-on-year increase in consolidated net profit to ₹4,302 million, driven by a 13% rise in revenue from operations to ₹39,507 million. The AGM is scheduled to be held on Friday, August 14, 2026, at 10:00 AM (IST) through video conferencing and other audio-visual means.

Consolidated Financial Performance for FY26

The company delivered strong financial results for FY26. Consolidated revenue from operations grew 13% year-on-year to ₹39,507 million from ₹35,104 million in FY25. Net profit rose 23% to ₹4,302 million from ₹3,502 million in the previous year. The following table presents the key consolidated financial highlights:

From a segment perspective, Air Compressors recorded annual growth of 13% and Automotive Equipment registered growth of 12%. The company also recognised an exceptional item of ₹150 million during the year ended March 31, 2026, on account of the implementation of Labour Codes notified by the Government of India on November 21, 2025.

On a standalone basis, revenue from operations was ₹23,429 million in FY26, up 13% from ₹20,809 million in FY25. Standalone net profit was ₹3,453 million (15%) in FY26 compared to ₹3,501 million (16.8%) in FY25.

Consolidated Balance Sheet Highlights

The following table presents key balance sheet metrics as at March 31, 2026 and March 31, 2025:

Key financial ratios for FY26 include an interest coverage ratio of 30.70 times (FY25: 19.30 times), a debt equity ratio of 0.20 (FY25: 0.30), and a Return on Capital Employed of 38.40% (FY25: 35.60%).

AGM Agenda: Key Resolutions

The 66th AGM will transact the following ordinary and special business:

• Adoption of standalone and consolidated audited financial statements for FY26.
• Declaration of final dividend at 270%, equivalent to ₹2.70 per equity share of face value ₹1/- each for FY26. Subject to shareholder approval, an amount of ₹856 million will be paid as dividend after deducting applicable taxes.
• Re-appointment by rotation of Mr. Anvar Jay Varadaraj (DIN: 07273942) as Director.
• Ratification of Cost Auditor remuneration: M/s. STR & Associates, Cost Accountants, appointed for FY2026-27 at a remuneration of ₹5,00,000 per annum, exclusive of applicable taxes and out-of-pocket expenses.
• Re-appointment of Mr. Anvar Jay Varadaraj as Executive Director for a further period of five years from August 2, 2026 to August 1, 2031, with total remuneration not exceeding ₹4,80,00,000 per annum (cost to company basis), of which 20% is variable.
• Appointment of Ms. Padmaja Alaganandan (DIN: 02867269) as an Independent Director for five consecutive years from May 27, 2026 to May 26, 2031, via special resolution.
• Appointment of Mr. Varun Jay Varadaraj (DIN: 07972025) as a Non-Executive Non-Independent Director, liable to retire by rotation, via ordinary resolution.

Strategic Outlook and ESG Highlights

The company's five-year Strategic Business Plan, with FY26 revenue of ₹39,507 million as the base, targets revenue of ₹66,150 million by FY31, subject to global economic conditions, with an EBITDA margin of 18% and a Return on Capital Employed of 35%.

On the ESG front, the share of renewable energy in total energy consumption rose to 57% in FY26 from 39% in FY25. Fresh water consumption was reduced by 21% year-on-year. The company reported that 13 of 15 ESG goals are on track or significantly better than plan. Capital expenditure on energy conservation equipment amounted to ₹7.4 million during the financial year. Total R&D expenditure stood at ₹373 million for FY26, representing 1.59% of turnover, compared to ₹396 million (1.90% of turnover) in FY25.

Elgi Equipments Limited achieved a 63.33% reduction in carbon intensity during the financial year 2025-26, alongside recycling 90.23% of its foundry waste sand, according to its Business Responsibility and Sustainability Report (BRSR). The company reported that 42% of its total energy consumption was derived from renewable sources, up from 29% in the previous year, as it advanced towards its goal of reducing CO2 emissions by 28% by 2027.

The report, which covers the standalone operations of the company, highlights the installation of a 1 MW Open Access Wind Power Plant in Tuticorin District and the initiation of a 2 MW Open Access Solar Power project, with 1 MW becoming operational in February 2026. Elgi Equipments also implemented a Zero Liquid Discharge (ZLD) mechanism across all manufacturing locations, ensuring no wastewater is discharged outside plant boundaries.

Environmental Performance

Elgi Equipments focused on energy efficiency and resource conservation during the year. The company’s total energy consumption stood at 87,916 GJ, with an energy intensity per rupee of turnover recorded at 3.75, an improvement from 3.88 in the previous year. Water consumption intensity also improved to 1.97 kiloliters per million rupees of turnover from 2.30 in FY 2024-25.

In terms of greenhouse gas emissions, the company reported total Scope 1 and Scope 2 emissions of 7,776 metric tons of CO2 equivalent, down from 8,796 metric tons in the prior year. The emission intensity per rupee of turnover improved to 0.33 from 0.42.

Social and Governance Metrics

The company reported a total workforce of 2,340 individuals, comprising 1,091 employees and 1,249 workers. Women accounted for 10% of the total employee strength and 13% of the total workforce. The gender diversity on the Board of Directors was 14%, with one female member out of seven directors.

Elgi Equipments maintained a strong compliance framework with no material instances of non-compliance or fines/penalties reported during the year. The company’s spending on measures towards the well-being of employees and workers was 0.17% of total revenue. The Lost Time Injury Frequency Rate (LTIFR) for the combined workforce was 0.49, reflecting the company’s focus on occupational health and safety.

Assurance and Disclosures

The BRSR disclosures were subject to limited assurance by Price Waterhouse Chartered Accountants LLP. The company identified material issues such as climate change action, water management, and product stewardship as key risks and opportunities. It reported that 100% of identified suppliers had signed the ELGi Business Code of Conduct, reinforcing its commitment to responsible supply chain practices.