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Elgi Equipments has entered into a Share Purchase Agreement to acquire 18.01% stake in Constronics Energy Solution Pvt Ltd.

ICICIdirect Research 21 Aug 2026 DISCLAIMER

News: Elgi Equipments has entered into a Share Purchase Agreement to acquire 18.01% stake in Constronics Energy Solution Pvt Ltd, a solar power company, for ₹1.62 crore. The investment is being made to meet the minimum shareholding requirements under the Electricity Act and enable Elgi to procure renewable power for its own consumption over a 25-year tenure, providing long-term tariff visibility and potential optimisation of power costs.

View: The investment supports Elgi’s strategy to increase the share of renewable power in its energy mix while providing greater long-term visibility on electricity costs. The 25-year renewable power arrangement could help reduce exposure to conventional power tariffs and support sustainability objectives, although the near-term financial impact is likely to remain limited given the modest investment size.

Impact: Neutral

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