Elgi Equipments Reports 18% Revenue Growth in Q3 FY26 Earnings Call
Elgi Equipments Limited reported strong Q3 FY26 results with 18% revenue growth to INR 10,034 Mn and 30% PBT growth to INR 1,439 Mn. Despite revenue expansion, EBITDA margins faced pressure from increased employee costs (12% rise) and other expenses (23% rise). The company maintains operations across 120+ countries with compressors contributing 92% of sales. Net cash position strengthened significantly to INR 6,058 Mn from INR 3,627 Mn year-over-year.
*this image is generated using AI for illustrative purposes only.
Elgi Equipments Limited held its Q3 FY26 analyst and investor conference call on February 12, 2026, presenting robust financial results that demonstrate continued growth momentum across its global operations. The company reported strong revenue expansion and profitability improvements despite facing margin pressures from increased operational costs.
Financial Performance Highlights
The company delivered impressive financial results for Q3 FY26, showcasing strong operational performance across key metrics:
| Metric | Q3 FY25 | Q3 FY26 | Growth (%) |
|---|---|---|---|
| Revenue | INR 8,476 Mn | INR 10,034 Mn | +18% |
| EBITDA | INR 1,230 Mn | INR 1,440 Mn | +17% |
| EBIT | INR 1,044 Mn | INR 1,227 Mn | +18% |
| PBT | INR 1,106 Mn | INR 1,439 Mn | +30% |
| PAT | INR 806 Mn | INR 952 Mn | +18% |
The company's revenue growth of 18% was driven by strong performance across most geographical regions, with positive growth recorded in India, North America, Europe, Australia, ATS, Middle East, and Brazil. Only South East Asia showed a decline during the quarter.
EBITDA Analysis and Cost Pressures
While EBITDA grew in absolute terms, the company faced margin compression due to increased operational expenses. The EBITDA reconciliation revealed that sales growth contributed INR 799 Mn, but this was partially offset by higher costs:
| Cost Component | Impact (INR Mn) |
|---|---|
| Volume Impact | +799 |
| Contribution % Impact | -62 |
| Employee Cost Increase | -213 |
| Other Expenses Increase | -315 |
Employee costs increased by 12% (INR 213 Mn) while other expenses rose by 23% (INR 315 Mn). The company noted that EBITDA should have reached INR 1,967 Mn based on increased sales contribution, but actual EBITDA was INR 1,440 Mn due to these cost increases.
Business Segment Performance
Elgi Equipments maintained a consistent business mix with compressors continuing to dominate the revenue composition. The sales mix showed:
- Compressors: 92% of total sales
- Automotive: 8% of total sales
Within the compressors segment, the geographical split remained balanced with India accounting for 52% and Rest of World (ROW) contributing 48% of compressor sales.
Global Presence and Market Reach
The company reinforced its strong international footprint, operating across:
| Global Presence Metric | Count |
|---|---|
| Countries with Business Operations | 120+ |
| Countries with Direct Presence | 28 |
| Countries with Manufacturing Presence | 3 |
Financial Position Strengthening
Elgi Equipments demonstrated significant improvement in its financial position with net cash growing substantially:
| Period | Cash (INR Mn) | Debt (INR Mn) | Net Cash (INR Mn) |
|---|---|---|---|
| December 2024 | 7,725 | 4,098 | 3,627 |
| December 2025 | 10,332 | 4,275 | 6,058 |
The net cash position improved by INR 2,431 Mn, reflecting strong cash generation capabilities and prudent financial management. This strengthened balance sheet provides the company with enhanced financial flexibility for future growth initiatives and strategic investments.
Historical Stock Returns for Elgi Equipments
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.01% | +5.06% | +15.73% | +1.68% | -3.51% | +209.85% |
20
