Elgi Equipments Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,134.30 Cr (+17.18% YoY) and PAT growth of +5.68% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,134.30 Cr (+17.18% YoY) |
| PAT (Q2) | Rs. 128.30 Cr (+5.68% YoY) |
| EBITDA margin | 16.31% (+186 bps YoY) |
| EPS (Q2) | Rs. 4.07 (+5.71% YoY) |
Elgi Equipments delivered 17.18% YoY revenue growth with EBITDA margin stepping up 186bps QoQ and YoY to 16.31%, the highest in the visible trend and 169bps from the 18%-by-FY31 target. Operating leverage offset a 106bps YoY COGS ratio increase, cash conversion was clean at 1.05x PAT, and the company met its stated budgeted-performance commitment. Reported PAT growth of 5.68% YoY understates the operating print due to prior-year disposal gains and current-quarter restructuring charges.
| Driver | What happened | Verdict |
|---|---|---|
| "Flow evidence points to continued strong YoY revenue" | +17.18% consolidated / +24.60% standalone YoY | Played out |
| Margin "hinges on whether that inventory bleed-through shows up against the input-cost acceleration" | 16.31%, +186bps QoQ and YoY | Played out |
| Delivery vs the Aug 13 "budgeted performance" statement | Revenue +17.2%, margin at trend high, PAT +5.7% | Played out |
| Watch: tariff-inventory margin benefit "from Q2" | Margin stepped up; component not separable | Partially |
| Watch: receivables vs ~20%+ revenue trend | Receivables −10.26% vs March | Played out |
| Watch: September IIP moderation denting India run-rate; Europe break-even; low-cost range/VAYU ramp; tariff refund balance | Not addressable in the filing — remains open for the call | Not observable |
| Watch: recurrence of restructuring exceptionals | Yes — further Rs.37 lakh-lakh-scale… precisely Rs.3.7 crore restructuring exceptional in Q2 | Played out |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin 18% by FY31 | FY26–FY31 Strategic Business Plan; "guidance of reaching 18% by FY31" reiterated on the Q1 FY27 call | 16.31% (company definition) | On Track |
| FY27 capex ~Rs.200 crore (Rs.120–130 crore factory shift + ~Rs.70 crore balancing) | Q4 FY26 earnings call | Rs.79.9 crore in H1; CWIP +27.1% vs March | On Track |
| "Positive outlook for Q2… on track to achieve its budgeted performance" | Q1 FY27 press release (Aug 13, 2026) | Revenue +17.2% YoY, EBITDA margin 16.31% (visible-trend high), PAT Rs.128.3 crore | Met |
| EBITDA margin 20% (open-ended) | Q1 FY27 call: "our target is to grow to 20" | 16.31% | Too Early |
| Revenue USD 750 Mn by FY31; ROCE 35% | FY26–FY31 Strategic Business Plan | Not derivable from the quarterly filing | Too Early |
| "Current margins are good and expected to improve further, assuming stable tariff conditions" | Q1 FY27 earnings call | Margin 14.62% → 16.31% QoQ (+186bps); tariff stability itself remained unresolved through the window — this quarter | Confirmed |
| "Effectively absorbed a 25% tariff… continued improvement barring unforeseen shocks" | Q1 FY27 earnings call | Margin expanded despite COGS ratio +106bps YoY — this quarter | Confirmed |
| India growth broad-based and volume-driven | Q1 FY27 call | Geographic P&L not disclosed in the filing; consolidated revenue +17.2% YoY is consistent | Too Early |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.