Elgi Equipments (ELGIEQUIP) Q4 25/26 earnings summary

Executive summary

• Revenue grew by 12% year-over-year, reaching INR 39,507 million for FY26, with all regions except Australia and Southeast Asia contributing to growth.

• Profit before tax (PBT) rose 17% year-over-year, with EBITDA and PAT also increasing, though impacted by higher employee costs and product mix.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with auditors issuing unmodified opinions.

• Strategic investments in IT, organizational restructuring in the US and Europe, and new product launches were made to support future growth.

• Sales growth was driven by a broad international presence, with operations in over 120 countries and direct presence in 28 countries.

Financial highlights

• Consolidated revenue for FY26 was INR 39,507 million, up from INR 35,104 million in FY25.

• EBITDA for Q4 FY26 was INR 1,739 million (15.6% margin), with consolidated net profit for FY26 at INR 4,302 million.

• Net cash position improved to INR 6,207 million as of March 2026, with 100% EBITDA conversion to cash.

• Wage Code provision and a one-time exceptional cost of INR 150 million impacted results in FY26.

• Depreciation increased due to a shift from owned to leased property, mainly in North America.

Outlook and guidance

• Expecting continued strong top-line growth in the first quarter of FY 2027, with bottom-line margins similar to FY 2026.

• Monitoring metal commodity prices and regulatory changes, with price corrections and accounting adjustments as needed.

• India and America expected to remain strong, with Europe stabilizing post-cost realignment and anticipated to achieve breakeven or marginal profitability.