Elgi Equipments Limited announced the transcript of its Q4 and FY 2025-26 Analyst/Investor Con-call, which was held on Friday, May 29, 2026. The transcript is available on the company's website. During the call, Managing Director Mr. Jairam Varadaraj discussed the company's financial performance, highlighting a 12% growth in revenue and a 17% growth in Profit Before Tax (PBT) for the fiscal year. He noted that EBITDA growth was impacted by product mix and tariffs, with employee costs increasing by 16% due to reorganizations and investments in shared services, particularly in the US and Europe. Other expenses rose by 8% due to IT investments. The company's consolidated revenue for the year was close to ₹4000 crore. Key factors affecting the financials included the wage code impact, reflected in the third quarter, and a significant increase in depreciation due to lease accounting changes after selling property in the US. The company maintained a solid net cash position, generating 100% of its EBITDA as cash. Looking ahead, Elgi Equipments anticipates a strong first quarter for FY27, with top-line growth similar to or slightly better than the previous year. The company is closely monitoring metal commodity prices, which have seen an increase similar to the post-COVID period, and plans to adjust prices accordingly in June to mitigate profitability impacts. Geographically, India and America continue to show strong performance. Europe is undergoing a consolidation and cost realignment phase, expected to become profitable. The company is exploring market entry in Germany. Discussions also touched upon demand drivers in India and America, driven by industrial growth and capacity expansions. The company is developing low-cost compressors to compete with Chinese players, with a planned launch in September. Regarding new technologies, Elgi is entering the vacuum business through a license agreement with DVP, viewing it as a long-term learning opportunity. The company is also focusing on organic market share gains in Europe and has made significant progress in inventory rationalization. Investments in Go-To-Market (GTM) strategies and IT infrastructure are ongoing, expected to continue for the next three to four years, with a return on investment anticipated over time.
