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Elgi Equipments reported healthy Q1FY27 performance

ICICIdirect Research 14 Aug 2026 DISCLAIMER

News: Elgi Equipments reported healthy Q1FY27 performance, with consolidated revenue rising 22.6% YoY to ₹1,062 crore, supported by resilient growth in India and the Americas, while Europe and Australia remained subdued. GPM declined 196bps YoY to 50.2% as material costs increased to 49.8% of revenue vs 47.8%. Despite the gross-margin pressure, operating leverage supported EBITDA growth of ~28% YoY to ₹155 crore, with EBITDA margin expanding 64bps YoY to 14.6%. PAT increased 20.7% YoY to ₹98 crore.Segmentally, Air Compressors revenue grew 22.9% YoY to ₹982 crore, with EBIT up 27% and margin improving to 14.4% (+46 bps), while Automotive Equipment revenue rose 17.8% to ₹80 crore, though EBIT margin declined to 4.8% from 5.3%.

View: Strong topline growth and improvement in Air Compressor profitability remain the key positives, with the segment delivering 22.9% revenue growth and 46bps YoY EBIT margin expansion. Overall EBITDA margin expansion despite a 196bps decline in GPM indicates operating leverage, although higher material costs and weak Automotive Equipment margin remain key monitorables. Growth was broad-based across India and the Americas, with automotive also delivering double-digit growth, while Europe and Australia remained subdued. 

Impact: Positive

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