Elgi Equipments (ELGIEQUIP) Q4 24/25 earnings summary

Executive summary

• Q4 and FY2025 saw revenue growth of 15% year-over-year, with strong performance in India, North America, and Europe, while Southeast Asia lagged.

• Q4 FY25 sales reached INR 9,929 Mn, with profit before tax rising 27% year-over-year to INR 1,403 Mn and net profit after tax at INR 1,020 Mn.

• EBITDA for Q4 was INR 1,500 million, below the expected INR 1,724 million due to one-time expenses and increased employee costs.

• Profitability ratios remain strong, and the net cash position is robust, with improved receivables control and inventory management initiatives underway.

• Audited standalone and consolidated financial results for the year ended March 31, 2025, were approved by the Board on May 28, 2025, with unmodified audit opinions from statutory auditors.

Financial highlights

• Q4 revenue grew 15% year-over-year to INR 9,929 Mn; PBT growth was strong in line with revenue.

• Gross margin for Q4 was 49%, down from 51% last year, mainly due to one-time inventory cleanup costs.

• EBITDA for Q4 FY25: INR 1,491 Mn, compared to INR 1,263 Mn in Q4 FY24.

• Standalone revenue from operations for FY25 was ₹20,809 million, up from ₹18,434 million in FY24; consolidated revenue for FY25 was ₹35,104 million, up from ₹32,178 million in FY24.

• Net profit for FY25 was ₹3,501 million standalone and ₹3,502 million consolidated, both up year-over-year.

Outlook and guidance

• Guidance for FY2026 is $450 million in revenue, 16% EBITDA, and 30% ROCE, in line with five-year targets.

• India expected to grow low to mid double digits if macro conditions remain stable; international growth is conservatively projected at single digits due to tariff and Europe uncertainties.

• New products, including stabilizers and machines targeting Chinese imports, are expected to launch fully by Q3 FY2026.

• The Board has recommended a dividend of ₹2.20 per share (220%) for FY25, indicating confidence in ongoing performance.