Ellenbarrie targets 20% revenue CAGR with new capacity
Ellenbarrie Industrial Gases released the transcript of its Q4FY26 earnings call, detailing a 14.2% growth in core gases revenue and a 500 basis point expansion in segment EBITDA margins to 38.4% for FY26. Adjusted Q4 margins reached 40%, though reported figures were impacted by ₹46 million in one-off items including an impairment and a customer settlement. The company is expanding capacity, targeting 1,131 TPD Bulk and 1,018 TPD Onsite capacity, and aims for a 20% revenue CAGR and 40% EBITDA margins through new plant ramp-ups, argon price recovery, and lower power costs via renewable PPAs.
*this image is generated using AI for illustrative purposes only.
Ellenbarrie Industrial Gases has released the transcript of its earnings conference call for the fourth quarter and financial year ended March 31, 2026. The call, held on May 25, 2026, under Regulation 30 of the SEBI (LODR) Regulations, 2015, highlighted a 14.2% growth in the core gases segment for FY26 compared to FY25. Management attributed the performance to high utilization levels and the commissioning of new plants, while addressing one-off costs that impacted reported Q4 profitability.
Financial Performance and Margins
The company reported that its gases segment EBITDA margins stood at 38.4% for FY26, an increase of 500 basis points from the previous year. For Q4FY26, the segment margin reached 40% on an adjusted basis. The reported Q4 EBITDA was ₹260 million with a margin of 30%, impacted by three non-recurring items aggregating ₹46 million. These included a one-time provisioning for employee leave encashment of ₹11 million, an impairment on a legacy non-core investment, and a one-time settlement of ₹15 million with an on-site customer regarding a plant start-up date.
Capacity Expansion and Guidance
Ellenbarrie outlined its capacity expansion strategy to drive future growth. The company currently operates 911 TPD of Bulk capacity and 698 TPD of Onsite capacity. Management targets increasing Bulk capacity to 1,131 TPD and Onsite capacity to approximately 1,018 TPD over the next 12 months. The newly commissioned Uluberia 2 merchant plant (220 TPD) is ramping up, and a new 320 TPD on-site plant in East India is expected to be operational next month. Further expansion includes new merchant plants in North India and West/Central India scheduled for FY27 and FY28.
Strategic Outlook and Cost Management
Management reiterated its long-term target of a 20% revenue CAGR and a 40% EBITDA margin. Key drivers include operating leverage from new capacity, recovering argon prices, and improved power economics. The company is actively shifting towards renewable energy to reduce costs, having signed a 25-year Power Purchase Agreement (PPA) for a wind-solar hybrid plant. Grid pricing is approximately 50-60% higher than PPA pricing, and the company aims to secure similar PPAs for other plants to enhance margins.
| Metric | Value |
|---|---|
| Core Gases Growth (FY26) | 14.2% |
| Gases Segment EBITDA Margin (FY26) | 38.4% |
| Reported Q4 EBITDA | ₹260 million |
| Adjusted Q4 EBITDA Margin | 40% |
| Existing Bulk Capacity | 911 TPD |
| Existing Onsite Capacity | 698 TPD |
| Target Bulk Capacity | 1,131 TPD |
| Target Onsite Capacity | ~1,018 TPD |
Historical Stock Returns for Ellenbarrie Industrial Gases
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.73% | -3.85% | -1.54% | -33.27% | -50.73% | -50.73% |
How will the ramp-up of the Uluberia 2 plant and the new East India on-site facility impact revenue growth in the first half of FY27?
What is the estimated capital expenditure required to fund the proposed capacity expansions in North India and West/Central India for FY27 and FY28?
How quickly can the company replicate the renewable energy PPA model across other plants to realize significant margin improvements?
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