Elgi Equipments Limited , a prominent air compressor manufacturer, has announced its financial results for the second quarter of the fiscal year 2025-26, showcasing robust growth across key metrics.

Financial Highlights

Market Performance

The company reported continued growth momentum across various markets:

• India, Middle Eastern, and South American markets showed strong performance.
• USA and Australia achieved double-digit growth.
• European performance remained subdued due to economic headwinds.
• The automotive business met growth expectations compared to the same period in 2024-25.

Outlook for Q3 2025-26

Elgi Equipments expects to maintain similar growth levels in the third quarter as observed in the second quarter. However, this projection is subject to the resolution and stabilization of import tariffs between the USA and India.

Detailed Financial Analysis

The unaudited consolidated financial results provide further insights into the company's performance:

• Total income for Q2 2025-26 stood at Rs. 10,194.00 million, compared to Rs. 8,830.00 million in Q2 2024-25.
• Profit before tax increased to Rs. 1,670.00 million in Q2 2025-26 from Rs. 1,307.00 million in the same quarter last year.
• Basic earnings per share (EPS) rose to Rs. 3.85 in Q2 2025-26, up from Rs. 2.99 in Q2 2024-25.

Balance Sheet Highlights

As of September 30, 2025:

• Total assets stood at Rs. 22,118.00 million, up from Rs. 20,838.00 million as of March 31, 2025.
• Total equity increased to Rs. 18,342.00 million from Rs. 17,265.00 million at the end of the previous fiscal year.

Management Commentary

Jairam Varadaraj, Managing Director of Elgi Equipments Limited, stated, "Our company has demonstrated good growth led by international regions when compared to the same period last year. We are particularly pleased with the double-digit growth achieved in the USA and Australia, which has contributed significantly to our overall performance."

The company's board of directors approved these results at a meeting held on November 12, 2025. The statutory auditors, Price Waterhouse Chartered Accountants LLP, have carried out a limited review of the financial results for the quarter and half-year ended September 30, 2025.

Investors and stakeholders should note that while the company has shown strong growth, future performance may be influenced by factors such as global economic conditions and trade policies, particularly concerning import tariffs between the USA and India.

Elgi Equipments Limited , a leading manufacturer of air compressors, has reported a mixed set of financial results for the second quarter. The company's consolidated net profit saw a significant increase, while revenue grew amidst margin pressures.

Financial Highlights

Elgi Equipments reported a consolidated net profit of ₹1,214 crore for the quarter, compared to ₹947 crore in the same period last year, marking a substantial increase of 28.2%. The company's revenue from operations rose to ₹9,680 crore, up 11.4% from ₹8,689 crore year-over-year.

Performance Analysis

Despite the growth in revenue and net profit, the company faced some challenges:

1. Margin Pressure: The EBITDA remained flat at ₹1,400 crore compared to the previous year, while the EBITDA margin declined to 14.45% from 16.29% in the same quarter last year. This indicates increased cost pressures on the company's operations.

2. Regional Performance: The company observed growth momentum across India, Middle Eastern, and South American markets. Notably, there was a positive shift in the USA and Australia, with both regions achieving double-digit growth. However, performance in Europe remained subdued due to economic headwinds.

3. Automotive Business: The company's automotive business achieved its expected growth compared to the same period in the previous fiscal year.

Management Commentary

Jairam Varadaraj, Managing Director of Elgi Equipments Limited, stated, "Overall, the Company has demonstrated good growth led by international regions when compared to the same period last year."

Future Outlook

Looking ahead to the third quarter, the company expects to maintain similar growth levels as in the second quarter. However, this outlook is subject to the resolution and stabilization of import tariffs between the USA and India.

Investor Considerations

While Elgi Equipments has shown robust top-line and bottom-line growth, investors should note the pressure on margins. The company's ability to manage costs and improve operational efficiency will be crucial in maintaining profitability in the face of global economic challenges.

The diversified geographical performance, with strong growth in some international markets, demonstrates the company's resilience. However, the subdued performance in Europe and the potential impact of USA-India import tariffs warrant close monitoring.

As Elgi Equipments continues to navigate the complex global economic landscape, its strategic initiatives and ability to capitalize on growth opportunities in various markets will be key factors to watch in the coming quarters.