Capital Goods · NSE: ELGIEQUIP
Elgi Equipments
Q2 FY27 earnings call · Guided by management
Call held 6 Nov 2026 · Read the filing on NSEFiling
- M.Cap
- ₹18,332Cr
- P/E
- 40.3×
- 1Y return
- +17.62%
- From 52W high
- −11.5%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · consolidated · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Revenue | 1,134 | 968 | +17.2% | 1,062 | +6.8% |
| EBITDA | 185 | 140 | +32.2% | 155 | +19.1% |
| EBITDA margin | 16.3% | 14.4% | +186 bps | 14.6% | +169 bps |
| One-off items | -4 | — | — | -7 | — |
| PBTProfit before tax | 171 | 164 | +4.6% | 138 | +24.3% |
| Net profit | 128 | 121 | +5.7% | 103 | +24.2% |
| EPS (₹) | 4.07 | 3.83 | +6.3% | 3.27 | +24.5% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
Europe: Europe guided to be marginally profitable, break-even as worst case; guidance maintained
Jairam Varadaraj · Managing Director · p. 4
Europe: Europe guided to be marginally profitable, break-even as worst case; guidance maintained
“As far as Europe is concerned, we will be marginally profitable. Break-even is the worst case, but we are quite confident that we will have some profit.”
More figures from the call
“if you start with the reconciliation due to the volume growth of 17%, our EBITDA should have gone up by Rs. 650 million”
In short
- 01Revenue grew 17% year on year in Q2, with about 4% from foreign exchange; EBITDA grew 28%.
- 02EBITDA margin rose from 14.9% to 16.3%, helped partly by a US tariff refund booked against material cost.
- 03Metal commodity prices are still rising; Q2 cost increases are not yet passed on, with corrections expected in Q3.
- 04Management kept its guidance that Europe will be marginally profitable this year, with break-even as the worst case.
- 05Australia is expected to be on track in Q3 and Q4 after reorganisation.
- 06MK2 campus: about Rs 600 crore over four to five years; first phase is on stream, diesel portable move due by Q1 of calendar 2028.
- 07Vayu low-cost brand reached about 35% coverage by September; full India coverage planned by January/February.
- 08A cost-reduction plan will take 6 to 9 months; more clarity promised by the end of Q4.
Capex
MK2 first phase, automated global parts warehouse, has gone on stream
Jairam Varadaraj · Managing Director · p. 8
MK2 first phase, automated global parts warehouse, has gone on stream
“a fully automated parts warehouse that serves all our operations globally. So, that has gone on stream even as we speak and that was the first phase.”
Portable compressors: Diesel portable compressor move approved; to finish by Q1 of calendar 2028
Jairam Varadaraj · Managing Director · p. 8
Portable compressors: Diesel portable compressor move approved; to finish by Q1 of calendar 2028
“We have got all the approvals and that will be completed by the first quarter of 2028 calendar year”
Segments
Compressors: Compressors make up 92% of revenue
Indranil Sen · Chief Financial Officer · p. 2
Compressors: Compressors make up 92% of revenue
“Compressors kind of continue to drive 92% of our overall revenues.”
India / ROW: India outperformed rest of world; revenue mix 52% India, 48% rest of world
Indranil Sen · Chief Financial Officer · p. 2
India / ROW: India outperformed rest of world; revenue mix 52% India, 48% rest of world
“India has overperformed over ROW markets and that's how you see a mix of 52% and 48%”
India: India improved both year on year and quarter on quarter
Indranil Sen · Chief Financial Officer · p. 2
India: India improved both year on year and quarter on quarter
“India has shown tremendous improvement both year on year and sequential quarters.”
Europe: Europe industrial grew; Italy portables muted on European economic downturn
Indranil Sen · Chief Financial Officer · p. 2
Europe: Europe industrial grew; Italy portables muted on European economic downturn
“In Europe, our industrial business has seen growth year on year, but our portables business in Italy has seen muted performance primarily because of economic downturn in various markets of Europe.”
Australia: Australia units business grew; service slightly muted
Indranil Sen · Chief Financial Officer · p. 2
Australia: Australia units business grew; service slightly muted
“As far as Australia is concerned, we have seen good growth in our units business, whereas service has remained slightly muted.”
Demand
India: India growth helped by Demand=Match raising conversion ratios
Jairam Varadaraj · Managing Director · p. 6
India: India growth helped by Demand=Match raising conversion ratios
“definitely Demand=Match increased our conversion ratios, when we are in front of the customer, but so that's definitely contributed.”
India: Go-to-market project raised inquiry levels in India
Jairam Varadaraj · Managing Director · p. 6
India: Go-to-market project raised inquiry levels in India
“our inquiry levels have gone up by virtue of being able to cover a lot more customers as part of that go to market process.”
India: Indian economy buoyant; demand patterns have gone up
Jairam Varadaraj · Managing Director · p. 6
India: Indian economy buoyant; demand patterns have gone up
“And the third of course is the buoyancy in the Indian economy itself. The demand patterns have gone up.”
Oil free: Oil-free demand verticals like pharma and food doing well on investment plans
Jairam Varadaraj · Managing Director · p. 8
Oil free: Oil-free demand verticals like pharma and food doing well on investment plans
“So, oil free is primarily driven by pharma, food processing, very specialized industry verticals that have a demand for oil free machines. All of these verticals are doing well in terms of their investment plans.”
Vayu: Vayu orders and sales above plan
Jairam Varadaraj · Managing Director · p. 10
Vayu: Vayu orders and sales above plan
“The initial launch has been outstanding, the order book and the sale has been far higher than what we had anticipated.”
Margins and costs
Higher material costs reduced EBITDA by Rs 170 million
Indranil Sen · Chief Financial Officer · p. 2
Higher material costs reduced EBITDA by Rs 170 million
“that's how you see an impact of Rs. 170 million inspite of increase in volume”
EBITDA margin rose from 14.9% to 16.3%
Indranil Sen · Chief Financial Officer · p. 2
EBITDA margin rose from 14.9% to 16.3%
“If you largely see, the EBITDA is actually grown from 14.9% to 16.3%.”
Metal commodity prices are still rising
Jairam Varadaraj · Managing Director · p. 4
Metal commodity prices are still rising
“So even as we speak, our metal commodity prices are continuing to increase.”
Further price corrections made; some effect expected in Q3
Jairam Varadaraj · Managing Director · p. 4
Further price corrections made; some effect expected in Q3
“subsequently there have been further increases and that we have also made some corrections in those crises and we expect to see some of that coming in the third quarter.”
Q2 cost increases were not yet reflected in Q2 prices
Jairam Varadaraj · Managing Director · p. 4
Q2 cost increases were not yet reflected in Q2 prices
“So, whatever we had an issue in the first quarter, what was visible we've been able to absorb and correct in the second quarter. But what happened in the second quarter, we have not been able to reflect in our second quarter.”
Debt and working capital
Net cash grew; about Rs 200 million of cash added in the quarter
Indranil Sen · Chief Financial Officer · p. 2
Net cash grew; about Rs 200 million of cash added in the quarter
“Our net cash continues to grow. This quarter we have added around, close to Rs. 200 million of cash”
Cash profit for April to September was Rs 337 crore
Indranil Sen · Chief Financial Officer · p. 2
Cash profit for April to September was Rs 337 crore
“the cash profit from April to September has been healthy, Rs. 337 crores”
Net working capital investment mainly inventory; capex in line with MK2 programme
Indranil Sen · Chief Financial Officer · p. 3
Net working capital investment mainly inventory; capex in line with MK2 programme
“capital, which is largely an account of inventory. We continue to pay taxes largely in India and our Capex program is in line with our MK2 program that is ongoing.”
Acquisitions and new business
Vayu: Vayu full India coverage planned by January/February
Jairam Varadaraj · Managing Director · p. 10
Vayu: Vayu full India coverage planned by January/February
“Our plan is to do the complete coverage of the country by end of January and February or January / February time frame and we are on track to make that happen.”
Dividends and buybacks
Dividend was paid out during the quarter
Indranil Sen · Chief Financial Officer · p. 2
Dividend was paid out during the quarter
“Of course, this is a quarter in which we also paid out dividend”
One-offs
US tariff refund is included in the quarter's results
Indranil Sen · Chief Financial Officer · p. 2
US tariff refund is included in the quarter's results
“We also had called out earlier during the quarter that we will be receiving a tariff refund from the US and that's something which is baked in here”
Tariff refund booked as a credit to material cost
Indranil Sen · Chief Financial Officer · p. 5
Tariff refund booked as a credit to material cost
“They are booked as a credit into material cost.”
Subsidiaries: Subsidiary margins also include some tariff refund
Indranil Sen · Chief Financial Officer · p. 7
Subsidiaries: Subsidiary margins also include some tariff refund
“Sorry, this also has a bit of tariff refund baked in the subsidies.”
Last year's other income included a sale of property, management confirmed
Indranil Sen · Chief Financial Officer · Q&A · p. 10
Last year's other income included a sale of property, management confirmed
“Yeah, so, your understanding on the first part on last year is correct. We had sale of property last year.”
Risks
Europe: Europe outlook depends on no further geopolitical conflicts
Jairam Varadaraj · Managing Director · p. 4
Europe: Europe outlook depends on no further geopolitical conflicts
“That is provided there are no further geopolitical conflicts and disruptions that happen, because Europe seems to be the most affected when these conflicts come in”
West Asia conflict cost escalation not built into plans
Jairam Varadaraj · Managing Director · p. 6
West Asia conflict cost escalation not built into plans
“West Asia conflict cost, I mean the conflict is causing it escalation and cost is something that we have not baked in”
Rotair: Rotair (Italy) hit by US export tariffs
Jairam Varadaraj · Managing Director · p. 9
Rotair: Rotair (Italy) hit by US export tariffs
“The Rotair operations are the one that got challenged because of export to the US, yeah.”
Middle East: Middle East war and disruption dampened that market
Jairam Varadaraj · Managing Director · p. 11
Middle East: Middle East war and disruption dampened that market
“Certain parts of even Middle East have done well, but of course, the disruption and the war have definitely put a, you know, kind of a dampener on the thing.”
Concern over metal commodity and fuel price inflation
Jairam Varadaraj · Managing Director · p. 14
Concern over metal commodity and fuel price inflation
“are there in our mind is the inflation in metal commodities and inflation and certain other fuel prices and all that is what we are concerned about.”
Other
Revenue grew 17% year on year, about 4% of it from foreign exchange
Indranil Sen · Chief Financial Officer · p. 2
Revenue grew 17% year on year, about 4% of it from foreign exchange
“Growth over previous year is at 17%. Out of the 17% growth, around 4% is driven by foreign exchange”
EBITDA grew 28% year on year
Indranil Sen · Chief Financial Officer · p. 2
EBITDA grew 28% year on year
“our EBITDA has grown year on year by 28%.”
Quarter EBITDA was Rs 1,850 million
Indranil Sen · Chief Financial Officer · p. 2
Quarter EBITDA was Rs 1,850 million
“So, this has landed up in our overall EBITDA of Rs. 1850 million.”
Oil free: Oil-free products made a separate sales vertical
Jairam Varadaraj · Managing Director · p. 8
Oil free: Oil-free products made a separate sales vertical
“we have carved out oil free products as a separate vertical in our sales organization to bring more focus to it.”
Standalone other income includes subsidiary dividend, eliminated in consolidated
Indranil Sen · Chief Financial Officer · p. 10
Standalone other income includes subsidiary dividend, eliminated in consolidated
“This year on standalone we have dividend from our subsidiary which gets eliminated in consolidated.”
Sources
- Earnings call transcript, Q2 FY27 Filed 12 Nov 2026 · 14 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.