Elgi Equipments Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 1,062.20 Cr (+22.56% YoY) and PAT growth of +20.68% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | August 13, 2026 |
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| Quarter | Q1 FY 2026-2027 |
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| Revenue (Q1) | Rs. 1,062.20 Cr (+22.56% YoY) |
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| PAT (Q1) | Rs. 103.30 Cr (+20.68% YoY) |
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| EBITDA margin | 14.62% (+65 bps YoY) |
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| EPS (Q1) | Rs. 3.28 (+21.03% YoY) |
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| Market cap | Rs. 18,271.39 Cr |
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| CMP | Rs. 576.55 |
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Quarter Snapshot
Revenue grew 22.6% YoY and normalized PAT rose 27%, driven by the core air compressors business. However, margin pressures from elevated material costs and a sequential QoQ decline in EBITDA margin, along with a lack of management guidance, temper the outlook.
Key Investment Insights
Key Positives
- Revenue from operations grew 22.56% YoY to Rs.1,062.2 Cr, driven by domestic compressors business (standalone revenue up 28.3%)
- EBITDA margin improved 65bps YoY to 14.62%, with EBITDA growing 28.24% YoY, outpacing revenue
- Normalized PAT grew 27% YoY after adjusting for Rs.7.3 Cr restructuring charge
- Air Compressors segment EBIT margin expanded 46bps YoY to 14.36%, maintaining solid profitability
- Other expenses as % of revenue improved 82bps YoY despite freight cost pressures, demonstrating cost control
- Subsidiary PAT contribution tripled YoY to Rs.12.9 Cr, indicating improving profitability in global operations
Risk Factors
- Material cost ratio expanded 195bps YoY to 49.78%, reflecting elevated steel and input cost environment
- Standalone EBITDA margin compressed 136bps YoY to 17.90% despite 28.3% revenue growth, indicating cost pressures
- Automotive Equipment segment EBIT margin collapsed 981bps QoQ to 4.75% from 14.56%, showing lumpy quarterly performance and project-driven nature
- Consolidated EBITDA margin decreased 104bps QoQ from 15.66% in Q4 FY26, partly due to seasonal Q1 weakness and investment phase