Elgi Equipments (ELGIEQUIP) Investor Day 25/26 summary

Strategic direction, growth targets, and business performance

• Set a five-year revenue target of $750 million by FY 2031 (11% CAGR), with 18% EBITDA margin and 35% ROCE, aiming for a 53/47 India/ROW split and surpassing previous targets at constant exchange rates.

• Achieved FY25 revenue of INR 35,104 Mn, with an estimated 11% growth to INR 38,800 Mn in FY26, driven by strong North America and ISAAME performance.

• Global air compressor market CAGR is 3.5% (FY13–26E), while company revenue grew at 6%, outpacing the market 1.7x and ranking as the 6th largest global player by value in FY25.

• Growth will be driven by market share gains, new products, expansion into new segments and geographies, and a rising share of aftermarket revenue, especially outside India.

• Inorganic growth is expected to be minimal, with selective opportunities in product expansion and customer access.

Financial performance and operational efficiency

• EBITDA margin maintained at 15% in FY25, targeting 16% for FY26, with margin expansion expected as investments normalize.

• Net debt reduced significantly, with improved working capital, cash conversion, and overseas subsidiaries contributing to loan reduction.

• Capex cycle underway, including a major new campus investment of INR 500-600 crore over 4-5 years to improve efficiency and reduce costs.

• Aftermarket revenue stands at 20% overall (28% in India, 12-15% outside), projected to rise to 20% outside India as the installed base grows.

• New global service center for parts support to be completed by April 2026.

Product innovation, technology, and digital transformation

• Launched Demand Match (Demand=Match) technology for fixed-speed compressors, improving energy efficiency up to 18%, with global rollout planned for April 2026.

• Expanded product portfolio with new two-stage air ends, super premium compressor series (75–250 kW), extended PMSM range, and in-house manufactured dryers and piping solutions.

• Focused on integrating IoT, advanced controllers, and developing internal heat recovery systems to support ESG and net-zero goals.

• Digital transformation includes globalized platforms, AI/data centers of excellence, automation at scale, and a three-stage roadmap for sales, finance, and automation.

• Manufacturing self-sufficiency improved, with 88% of motors produced in-house, reduced lead times, and further backward integration planned.