Elgi Equipments Limited has informed the Exchange about Transcript
ELGIEQUIP · price
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Elgi Equipments posted ~8% revenue growth and 18% PBT growth in Q1 FY26, but EBITDA came in at ~₹1,200M versus an expected ~₹1,500M due to higher employee costs (headcount additions for digital/IT/finance transformation initiatives) and other expenses. All regions grew except Europe and Australia, with India remaining the strongest despite some hesitation in textiles and auto components tied to US tariff concerns. Management said the first 25% US tariff can be absorbed through a 5-10% industry price hike plus cost initiatives, but the additional 25% would need fundamental structural changes and could take a year to respond to. The $450M revenue guidance and ₹250 Cr CAPEX plan over two years are on track. In-house motor production is set to rise from 40-45% currently to 70-75% by end-FY26 and ~90% within two years. A new stabilizer technology will launch in India in September and globally by April.
Margin pressure is visible in the near term from transformation spending and tariff uncertainty, but management maintains that EBITDA margins at current levels are sustainable. The stock may stay volatile until the US tariff picture clarifies, while longer-term capacity expansion, motor self-sufficiency, and new product launches provide a structural growth cushion.