Ellenbarrie Industrial Gases Reports Strong Q1 Results, Plans Capacity Expansion

Ellenbarrie Industrial Gases Limited , a key player in India's industrial gases sector, has reported robust financial results for the first quarter, showcasing significant growth and outlining ambitious expansion plans.

Strong Financial Performance

The company reported a remarkable 24% year-on-year increase in revenue for Q1. More impressively, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged by 40% compared to the same period last year. The EBITDA margin improved substantially, reaching 37.00% from 30.00% in the previous year, indicating enhanced operational efficiency.

Capacity Utilization and Expansion Plans

Ellenbarrie's Kurnool plant is currently operating at 60-65% capacity utilization, with expectations to reach 85-90% by the second half. All other facilities are running at full capacity, highlighting the strong demand for the company's products.

The company has outlined an aggressive expansion strategy:

• A merchant plant in East India is slated for commissioning by October 2025
• An on-site plant for Forest Steel Mill is expected to be operational by March 2026
• Another merchant plant in North India is planned for Q1 FY27

Product Mix and Market Position

Argon revenue has increased to 9.00% of total revenue, up from 7.00% previously. The company is targeting to push this figure to over 15.00% in the future, which could potentially boost profit margins further given argon's higher profitability.

Ellenbarrie currently holds approximately 4.00% market share in India's industrial gases sector, positioning itself as the 4th or 5th largest player in the country.

Financial Management and Future Outlook

In a strategic move to strengthen its balance sheet, Ellenbarrie repaid INR 210.00 crores of borrowings in July 2025 using IPO proceeds. The company has earmarked capital expenditure of INR 250.00 crores over the next 1.5 years to support its expansion plans.

Looking ahead, management expects at least 25% annual revenue growth for the next 2-3 years while aiming to sustain the 37.00% EBITDA margin. The company is set to expand its capacity from 1,370 tons per day to 1,910 tons per day, and further to 2,130 tons per day.

Expansion Strategy

Varun Agarwal, Joint Managing Director, emphasized the company's pan-India expansion plans: "We felt this is the right time to embark on this pan-India expansion. The balance sheet is strong, and the company is more visible as a brand, especially post-IPO."

The company is actively exploring opportunities in Western India, aiming to capitalize on the region's industrial growth.

Ellenbarrie's strong Q1 performance and ambitious expansion plans signal a promising future for the company in India's growing industrial gases market. As it continues to expand its capacity and geographical presence, the company appears well-positioned to capture a larger market share and deliver sustained growth in the coming years.