Elgi Equipments (ELGIEQUIP) investor relations material

Executive summary

• Revenue grew 8% year-over-year, reaching INR 8,667 Mn in Q1 FY26, with strong contributions from volume growth, exchange rates, and price increases; PBT rose 18% to INR 1,403 Mn.

• Operating profitability remains strong despite increased employee and other expenses tied to digital and finance transformation initiatives.

• Sales growth was broad-based across India, North America, Middle East, Brazil, and Southeast Asia, though Europe and Australia lagged.

• Cash position is healthy, supported by effective treasury management and working capital initiatives.

• Standalone financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board on August 12, 2025.

Financial highlights

• Q1 FY26 revenue was INR 8,667 Mn, up from INR 8,011 Mn in Q1 FY25; EBITDA for the quarter was INR 1,216 Mn with a 14.0% margin.

• PAT for Q1 FY26 stood at INR 1,020 Mn, with a PAT margin of 11.8%; basic EPS was INR 2.71.

• Net cash position improved to INR 4,745 Mn as of June 2025, up from INR 2,034 Mn in June 2024.

• Employee costs and other expenses each increased by 10% year-over-year.

• Gross margin improved as cost of materials consumed decreased to ₹2,045 million from ₹2,191 million year-over-year.

Outlook and guidance

• Confident in achieving $450 million revenue guidance for the year, barring significant currency fluctuations.

• Expect continued improvement in cash position as working capital management initiatives mature.

• Investments for long-term growth, including CapEx of INR 250 crore over two years, remain on track.

• Results reflect only the compressor business, with no indication of new segments or diversification.

• Uncertainty around US tariffs (potentially rising to 50%) could impact competitiveness and require structural changes if sustained.