Elgi Equipments Ltd. share price target

Elgi's strategic business plan envisages ~11% revenue growth CAGR over FY26-31E driven by India (~12% CAGR) and RoW (~10% CAGR). We attended Elgi Equipments' (ELEQ) analyst meet, where management highlighted business performance, product innovation, and its medium-term strategic roadmap. The ISAAME region is expected to remain the key growth engine, supported by strong traction in the Middle East and a recovery in investment activity following tariff normalization. In North America,...

US & Europe trade tailwind strengthen growth visibility... About the stock: Elgi Equipment (Elgi) manufactures a wide range of air Expansion in new international markets to drive long term incremental...

Elgi is the second largest player in the Indian air compressor market (~22% market share) and among the top eight players globally Expansion in new international markets to drive long term incremental growth (rest of the world contributed ~48% in FY25) Q2FY26 performance: Elgi reported a decent set of numbers with amid US tariff for Q2FY26. Revenues grew 11.4% to 968 crore. EBITDA declined 1.2% YoY to 140 crore. EBITDA margins at 14.5% down 184 bps YoY (+50 QoQ). Consequently, PAT for the quarter came in at 121 crore up 28% YoY...

Elgi Equipments (ELEQ) delivered decent performance during the quarter, with revenue rising 8.2% YoY, while EBITDA margin contracted marginally by 25bps YoY to 14.0%. Domestic order enquiries remained healthy; however, geopolitical instability and tariff-related uncertainties delayed order finalizations. In overseas markets, Europe and Australia saw a modest...

Elgi Equipments (ELEQ) reported a healthy quarter, with revenue growing 14.7% YoY and EBITDA margin improving by 64bps to 15.1%. During the quarter, the domestic order inquiries remained strong though the order finalizations were delayed. ELGI's newly launched Stabilisor' is on track for a full market rollout by Q3FY26. High margin Aftermarket sales remain a key focus amid the...

Elgi plans to expand its Electric Motors capacity while investing ~Rs2.5bn for phase 1 of MK2 plan to build new facilities of Portable business and GSC. We recently attended Elgi Equipments' plant visit & analyst meet, where the management highlighted the company's robust business performance driven by market share gains in the ISAAME (India, South Asia & Middle East) region amid strong demand and new product launches. However, North American...

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In Q4FY21, air compressor international sales (including exports from India) is estimated to have contributed ~45% to air compressor sales in Q4FY21. It continues to perform well in key international markets led by Australia, US, Europe while South East Asia and Gulf are expected to rebound gradually. Margins are expected to further improve due to ramp-up in international business, optimisation of operating cost leading to incremental revenue, future growth and positive operating leverage. Also, Elgi is expected to...

India business seeing decent traction amid economic recovery Elgi's standalone air compressor (domestic & direct exports compressor) grew 14.2% YoY to | 323.0 crore (~59% of consolidated topline). Pure domestic air compressor sales came in better than expected with growth of ~20% YoY | 264 crore. Elgi is on track in its strategy to optimise employee cost and primarily in India business. Elgi has seen activities across all major industries and expects further revival in capacity building with smaller incremental investments by industries. Its disrupted AB series oil free...

Overall, Elgi's strategy to expand in new geographies in Europe, continued growth momentum in the US, Australia and expected rebound in South East Asia & Gulf markets are expected to contribute significantly to incremental growth in coming years. A rebound was visible in Q2FY21 performance with air compressor international sales (including exports from India) contributing ~57% to total air compressor sales registering growth of ~39% to | 253 crore YoY. It performed well in key international markets led by Australia, US, Europe while South East Asia, and Gulf reported moderate...