Elgi Equipments Reports 8% Revenue Growth in Q1, Navigates US Tariff Challenges

1 min read     Updated on 19 Aug 2025, 05:33 PM
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Reviewed by
Ashish ThakurBy ScanX News Team
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Overview

Elgi Equipments, a leading air compressor manufacturer, reported 8% year-over-year revenue growth in Q1. EBITDA reached 1200.00 million rupees, below expectations. PBT increased by 18%. The company maintained strong performance in India and Middle East & Africa, while facing challenges in Europe and Australia. Strategic initiatives include launching new stabilizer technology and increasing in-house motor production. The company is addressing potential 50% tariffs on US imports and expects a 5-10% price increase in the US market. Despite challenges, Elgi remains on track for its $450.00 million revenue guidance and plans 250.00 crore CAPEX over two years.

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*this image is generated using AI for illustrative purposes only.

Elgi Equipments , a leading air compressor manufacturer, has reported an 8% year-over-year revenue growth in the first quarter, demonstrating resilience amid global economic challenges. The company's performance was driven by volume growth, favorable exchange rates, and strategic price increases.

Financial Highlights

  • Revenue grew by 8% year-over-year
  • EBITDA reached 1200.00 million rupees, falling short of the expected 1500.00 million rupees
  • Profit Before Tax (PBT) increased by 18% year-over-year
  • The company maintained a healthy net cash position

Geographic Performance

  • India: Continued strong performance despite some market hesitation
  • United States: Remained profitable despite tariff concerns
  • Europe: Faced challenges due to economic conditions
  • Middle East & Africa: Showed strong revenue and profitability
  • Australia: Experienced weakness but showing signs of recovery

Strategic Initiatives and Challenges

Jairam Varadaraj, Managing Director of Elgi Equipments, highlighted several key points during the earnings call:

  1. New Technology Launch: The company is set to introduce new stabilizer technology across India in September, with plans for global expansion by April next year.

  2. In-house Motor Manufacturing: Elgi aims to increase its in-house motor production from the current 40-45% to 70-75% by the end of this financial year, with a target of reaching 90% in two years.

  3. US Tariff Impact: The company is actively working on solutions to address the potential 50% tariff on imports to the US. Varadaraj stated, "We have a solution in place for the first 25%, but the next 25% will involve certain structural changes in the way we are organized."

  4. Market Adaptation: Elgi expects a 5-10% price increase in the US market to offset tariffs and is confident in its ability to remain competitive.

  5. Portable Compressor Segment: The company anticipates recovery in the portable compressor market within 6-8 months.

Outlook

Despite the challenges, Elgi Equipments remains on track to achieve its $450.00 million revenue guidance. The company continues to invest in long-term growth initiatives, including its planned 250.00 crore CAPEX over two years.

Varadaraj expressed cautious optimism about the future, stating, "Ex tariffs, I think everything is positive. But you know, it's very difficult to say, you know, we'll ignore the tariff, right? And it's a large market. It's a large economy."

As Elgi Equipments navigates the complex global economic landscape, its focus on technological innovation, market expansion, and operational efficiency positions it to capitalize on emerging opportunities while addressing potential headwinds.

Historical Stock Returns for Elgi Equipments

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Elgi Equipments Appoints New Company Secretary and Reports Strong Q1 Performance

2 min read     Updated on 12 Aug 2025, 08:59 PM
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Reviewed by
Suketu GalaBy ScanX News Team
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Overview

Elgi Equipments Limited has appointed Mr. Rohit Gupte as its new Company Secretary and Compliance Officer, effective August 12, 2025. The company also reported robust financial results for Q1 FY2025-26, with revenue from operations increasing by 8.19% to ₹8,667.00 million and net profit rising by 17.58% to ₹856.00 million compared to the same quarter last year. The air compressor segment remains the primary revenue driver, contributing about 92% of total revenue.

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*this image is generated using AI for illustrative purposes only.

Elgi Equipments Limited , a leading air compressor manufacturer, has announced the appointment of Mr. Rohit Gupte as its new Company Secretary and Compliance Officer, effective August 12, 2025. The company also reported robust financial results for the first quarter of the fiscal year 2025-26.

New Leadership in Corporate Governance

The Board of Directors of Elgi Equipments, based on recommendations from the Nomination and Remuneration Committee, approved the appointment of Mr. Rohit Gupte as the Company Secretary and Compliance Officer. Mr. Gupte brings a wealth of experience to his new role, with over three decades in finance, operations, compliance, and leadership positions across various organizations.

Mr. Gupte's credentials include qualifications as a Company Secretary (ACS), Cost Accountant (AICWA), and a law degree from Mumbai University. His diverse background spans companies such as Siemens, Fidelity, PineBridge Investments, Deutsche Bank, and most recently, the National Stock Exchange of India (NSE), where he held the position of Company Secretary.

In his previous role at NSE, Mr. Gupte led governance, compliance, and secretarial functions, playing a key role in regulatory compliance, market regulation, and policy formation. His expertise in designing and implementing compliance frameworks, regulatory communication, and board governance is expected to strengthen Elgi Equipments' corporate governance practices.

Strong Financial Performance in Q1 FY2025-26

Alongside this key appointment, Elgi Equipments reported impressive financial results for the quarter ended June 30, 2025:

Particulars (Consolidated) Q1 FY2025-26 (₹ in Millions) Q1 FY2024-25 (₹ in Millions) YoY Growth
Revenue from Operations 8,667.00 8,011.00 8.19%
Profit Before Tax 1,177.00 1,000.00 17.70%
Net Profit 856.00 728.00 17.58%
Earnings Per Share (Basic) 2.71 2.30 17.83%

The company demonstrated strong growth across key financial metrics. Revenue from operations increased by 8.19% year-over-year, while net profit saw a significant rise of 17.58% compared to the same quarter in the previous fiscal year.

Segment Performance

Elgi Equipments' business is organized into two main categories:

  1. Air Compressors: This segment reported revenue of ₹7,992.00 million for the quarter.
  2. Automotive Equipment: The automotive segment contributed ₹679.00 million to the total revenue.

The air compressor segment continues to be the primary revenue driver for the company, accounting for approximately 92% of the total revenue from operations.

Mr. Jairam Varadaraj, Managing Director of Elgi Equipments Limited, stated, "Our strong first-quarter results reflect the continued demand for our products and the efficiency of our operations. The appointment of Mr. Rohit Gupte as our new Company Secretary and Compliance Officer further strengthens our corporate governance framework as we continue to grow and expand our global presence."

As Elgi Equipments Limited moves forward with its new appointment and positive financial momentum, the company appears well-positioned for continued growth in the air compressor and automotive equipment markets.

Historical Stock Returns for Elgi Equipments

1 Day5 Days1 Month6 Months1 Year5 Years
-0.23%+2.49%-8.59%+6.04%-20.21%+346.86%
Elgi Equipments
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