Elgi Equipments (ELGIEQUIP) Q1 25/26 earnings summary

Executive summary

• Revenue for Q1 FY26 increased by 8% year-over-year to INR 8,667 million, with PBT up 18% to INR 1,403 million and net profit at INR 856 million; growth was broad-based across India, North America, Middle East, Brazil, and Southeast Asia.

• Operating profitability remains robust despite higher employee and other expenses due to ongoing digital, IT, and finance transformation initiatives.

• All regions except Europe and Australia saw sales growth; Europe faces economic challenges and Australia is expected to recover in the second half.

• Working capital initiatives are beginning to show results, with further improvements in cash position anticipated.

• Divestment of Gentex Air Solutions LLC, a jointly controlled entity, occurred during the quarter.

Financial highlights

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

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

• Consolidated EBITDA margin improved year-over-year, and total comprehensive income for Q1 FY26 was INR 785 million.

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

• Sales mix across businesses and geographies remained stable, fluctuating only 2-3% quarter-to-quarter.

Outlook and guidance

• Guidance of $450 million revenue for the year remains on track, barring significant currency fluctuations.

• Confident of regaining growth in Europe and Australia by Q3 and Q4, with continued strong performance in India, Middle East, and Africa.

• Sales grew by 8% year-over-year, with positive momentum in key international and domestic markets.