Elgi Equipments Ltd

ESG Rating Details

• Core ESG rating 'Crisil Core ESG 58' assigned to Elgi Equipments Ltd.
• Company had no engagement with Crisil; report prepared independently from public data.
• First-time ESG rating; no prior Crisil ESG Ratings engagement disclosed.
• Report is publicly available on the company website.

Key details

• Target: Constronics Energy Solution Private Limited, India-based solar power company, incorporated Dec 3, 2024, NIL turnover.
• Acquisition: 18.01% stake for cash ₹1,61,70,000.
• Relationship: Not a related party; no promoter/group interest.
• Industry: Solar power.
• Purpose: Comply with Electricity Act shareholding requirements and enable 25-year renewable energy procurement.
• Regulatory approvals: None indicated.
• Completion timeline: Indicative completion date Aug 20, 2026.
• Form of consideration: Cash.
• Acquisition size: 18.01% stake.
• Background: India-based solar power entity incorporated 03-Dec-2024; NIL turnover FY2023-24 to FY2025-26.

Financial Performance

• Q1 FY27 revenue grew about 23%; exchange impact ~7%.
• EBITDA grew 28%; exchange impact carved out.
• PAT margin around 9.7%; roughly flat YoY, includes reorganization costs.
• Net cash position remains very strong.
• CAPEX: MK2 campus shift; land in Italy; other factory capex.
• Material costs rose ~5% vs 3–4% expectation; corrections implemented.
• EBITDA margin maintained or slightly higher; expected to improve going forward.

Operating / Segment Update

• India standalone growth ~28%.
• North America growth ~37%; Europe ~21%; Australia ~17%.
• Southeast Asia challenges; restructuring underway; recovery targeted by Q3/Q4.
• EV, renewables, and semiconductor segments contributing meaningfully in India.
• Europe focus on P&L breakeven with cost controls; Germany and Eastern Europe planned.
• North America distribution improving; service side underperforming; corrective actions in progress.
• Tier-4 launch in Sep; Hyderabad exhibition; distributors lined up.

Balance Sheet and Cash Flow

• Net cash position remains very strong.
• Capex includes MK2 campus move; land in Italy; additional factory capex.
• Reorganization costs in Australia, Europe, and the US; some ongoing.

Projects and Capex

• MK2 campus relocation capex; about half of total CAPEX toward this project.
• Italy land purchase; contracted six years ago.
• Italian JV vacuum product indigenized; production started; first-quarter growth strong.
• Tier-4 expansion: September launch; training and distributors in place.

Outlook and Guidance

• Price corrections expected by end of Q2 and more fully in Q3.
• Raw-material cost pressures around 5% actual; potential 9%; mitigated through actions.
• EBITDA margin to improve; current level sustained with upward trajectory.
• Demand=Match rollout to rest of world this year; further global uptake.
• Tier-4 project to contribute modestly this year; larger impact in coming years.

Q&A Highlights

• India growth largely volume-led; price corrections ~5% due to material costs; impact visible later.
• Demand=Match traction across India; rest of world rollout this year; distributors deepening.
• Warranty cost <1% of revenue; global gaps vs peers; India-specific context noted.
• Tariff rate 25%; refunds approved ~4 million; actual refunds ~1.6–1.8 million; balance pending.
• Vacuum product from Italian JV shows early strong growth; high-quality customer base.

Key highlights

• VAYU launched in India as a new air compressor brand by ELGi Equipments.
• 5-45 kW portfolio with fixed and variable-speed options, 7-12.5 bar.
• Includes warranty coverage, nationwide service, genuine spare parts.
• Made in India, initially focused on Indian manufacturers, with plans for international expansion.
• Leadership commentary underscores commitment to dependable performance and service support.

Meeting Details

• Date: August 14, 2026; analyst/investor con-call for Q1 FY2026-27.
• Purpose: discuss quarterly financial results for the quarter ended June 30, 2026.
• Recording: audio/video recording available on the company's investor website.

Meeting Details

• Date/time: 14 August 2026, 12:00 PM IST.
• Type and mode: Group investor con-call, virtual via Microsoft Teams.
• Organizer: Elgi Equipments Limited.

Participants

• Senior management to participate, with earnings presentation by CEO/CFO.

Purpose

• Discuss Q1 FY27 earnings and results with analysts/investors.
• Investor interaction and Q&A session.

Additional Notes

• Audio/video recording, transcript, and presentation will be uploaded on the company website.

Financial and operational highlights

• Consolidated quarterly sales Rs 1,062 crore, up 23% YoY.
• Standalone quarterly sales Rs 645 crore, up 28% YoY.
• Consolidated PAT before exceptional items Rs 111 crore, up 29% YoY.
• Standalone PAT Rs 90 crore, vs Rs 82 crore in prior year.
• Automotive business posted double-digit growth; Europe and Australia remained subdued.
• Outlook for Q2 FY2026-27 remains positive; on track to meet budgeted performance.

Standalone performance

• Standalone revenue from operations: Rs 6,448 million; total income: Rs 6,649 million.
• Standalone net profit: Rs 904 million; basic EPS: 2.87; diluted EPS: 2.86.

Consolidated performance

• Consolidated revenue from operations: Rs 10,622 million; total income: Rs 10,826 million.
• Consolidated net profit: Rs 1,033 million; basic EPS: 3.28; diluted EPS: 3.27.
• Restructuring-related exceptional item: Rs 73 million.

Segment economics

• Air Compressors revenue: Rs 9,823 million; Automotive equipment: Rs 800 million.
• Air Compressors segment profit: Rs 1,411 million; Automotive equipment: Rs 38 million.
• Total segment revenue: Rs 10,623 million; total segment profit: Rs 1,449 million.

Capital employed

• Capital employed by segments: Air Compressors Rs 21,785 million; Automotive Rs 1,680 million.
• Total capital employed: Rs 23,468 million.

AGM details and access

• 66th AGM on Aug 14, 2026 at 10:00 IST via VC/OAVM.
• Web-link to Annual Report for FY2025-26 provided for members without registered emails.
• Access path: https://www.elgi.com/in/agm/.

Shareholder communications and KYC

• Cut-off date for email address updates: July 17, 2026.
• Physical shareholders must update PAN, contact, bank details and signatures per SEBI circular.
• Electronic mode required for all dividend, interest, or redemption payments.