Elgi Equipments Limited Earnings Summary — Q1 FY2027
Elgi Equipments Reports Strong Q1 Performance with 22.6% Revenue Growth Despite Restructuring Impact
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 4.5% sequentially in Q1 FY2027.
- Revenue of ₹1,062 Cr is 22.6% higher year-on-year.
- Revenue has compounded at 9.5% annualised over the last 10 quarters.
- Net profit of ₹103 Cr is 20.7% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 14.5% annualised across the period.
- Operating margin stands at 14.6% in Q1 FY2027.
- Operating margin expanded by 65 bps year-on-year.
- Over the last two years operating margin has expanded by 39 bps.
- PBT margin is 13.1%.
- Expense growth of 21.6% remained below revenue growth of 22.6%.
- Operating profit of ₹155 Cr is 28.2% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 69/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,062 | 1,113 | 1,003 | 968 | 867 | 993 | 848 | 869 | 801 | 866 |
| Expenses | Stable | 907 | 940 | 860 | 828 | 746 | 843 | 728 | 727 | 687 | 741 |
| Operating Profit | Improving | 155 | 173 | 144 | 140 | 121 | 150 | 119 | 142 | 114 | 125 |
| Operating Margin | Stable | 14.6% | 15.5% | 14.3% | 14.4% | 14.0% | 15.1% | 14.1% | 16.3% | 14.2% | 14.4% |
| Other Income | Volatile | 15 | 22 | 11 | 55 | 23 | 18 | 15 | 16 | 14 | 15 |
| Interest | Stable | 6 | 6 | 5 | 7 | 7 | 8 | 6 | 8 | 9 | 10 |
| Depreciation | Stable | 25 | 25 | 21 | 21 | 19 | 20 | 19 | 19 | 19 | 20 |
| Profit Before Tax | Improving | 140 | 164 | 129 | 167 | 118 | 140 | 111 | 131 | 100 | 110 |
| Tax | Improving | 36 | 36 | 34 | 46 | 32 | 38 | 30 | 36 | 27 | 34 |
| Net Profit | Improving | 103 | 128 | 95 | 121 | 86 | 102 | 81 | 95 | 73 | 76 |
| Net Margin | Stable | 9.7% | 11.5% | 9.5% | 12.5% | 9.9% | 10.3% | 9.5% | 10.9% | 9.1% | 8.8% |
Key Takeaways
- Consolidated revenue grew 22.6% year-on-year to ₹10,622 million, driven by strong performance in the Air Compressors segment.
- Air Compressor segment revenue reached ₹9,823 million compared to ₹7,992 million in the same quarter last year, marking significant volume expansion.
- Net profit increased 20.7% YoY to ₹1,033 million, despite a one-time exceptional hit of ₹73 million due to organizational restructuring.
- Automotive Equipment segment saw a modest recovery with revenue increasing to ₹800 million from ₹679 million in Q1 FY2026.
- Operating margins before exceptional items remained resilient at 13.65%, though slightly compressed compared to the preceding quarter (Q4 FY26).
- Geographic diversification continues to be a strength, with international subsidiaries contributing significantly to the consolidated bottom line.
- The company maintained a strong balance sheet with consolidated capital employed increasing to ₹23,468 million.
- Strategic divestment of Patton's of California and PLA Holding Company occurred shortly after the quarter-end on July 10, 2026.
Management Guidance
Management remains focused on global expansion and organizational realignment to drive efficiencies, as evidenced by the restructuring initiatives undertaken during the quarter.
Sentiment Shift
Stable
Revenue and profit growth remains robust on a YoY basis, though sequential performance was impacted by seasonal factors and a one-time restructuring cost.
Outlook
The outlook remains positive as the company continues to gain market share in international markets and optimizes its organizational structure to improve long-term profitability.
From the Annual Report (Key Quotes)
“The Group recognized ₹73 million towards restructuring costs arising from organizational realignment.”
“Air Compressors segment revenue grew to ₹9,823 million from ₹7,992 million in the previous year quarter.”
“The figures of the quarter ended March 31, 2026, are balancing figures between audited figures in respect of the full financial year and unaudited published year-to-date figures.”
Official Quarterly Documents
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This summary is AI-generated from Elgi Equipments Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.