Elgi Equipments (ELGIEQUIP) Q3 25/26 earnings summary

Executive summary

• Revenue for Q3 FY26 increased by 18% year-over-year, reaching INR 10,034 million, with broad-based growth across most geographies except Southeast Asia, which is under reorganization.

• Profit before tax (PBT) for Q3 FY26 rose by 30% year-over-year to INR 1,439 million, with profitability improvement despite higher employee and restructuring costs.

• EBITDA for Q3 FY26 was INR 1,440 million, below potential due to increased employee and other fixed costs, including one-time restructuring expenses in Europe.

• Cash and receivables remain healthy, with net cash position improving to INR 6,058 million as of Dec 2025, but inventory levels are elevated and a reduction project is underway.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, with no material misstatements identified by auditors.

Financial highlights

• Q3 FY26 consolidated revenue: INR 10,034 million, up from INR 8,476 million in Q3 FY25; nine-month revenue: INR 28,381 million, up from INR 25,175 million year-over-year.

• Q3 FY26 EBITDA: INR 1,440 million (margin 14.4%); PAT: INR 952 million (margin 9.5%); Basic EPS: 3.02.

• Standalone Q3 FY26 revenue: INR 6,056 million; net profit: INR 897 million; EPS: 3.01.

• Sales mix stable: 90%+ compressors, 8% automotive; India/ROW split 52%/48%.

• Exceptional other income in previous quarters from property sales affected sequential comparisons.

Outlook and guidance

• EBITDA should have reached INR 1,967 million based on sales growth, but was impacted by higher employee and other expenses.

• Expect positive impact in the next financial year from cost reduction initiatives and lower tariffs.

• Inventory reduction expected to show results by Q3 next year.

• Cautiously optimistic on India, expecting low double-digit growth if global disruptions are limited.

• Management continues to monitor regulatory changes, especially regarding new Labour Codes.