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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹1,003 Cr
verified against source
Revenue YoY
18%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Elgi Equipments reported 18% YoY revenue growth in Q3 FY26, with PBT up 30%, but EBITDA margins were impacted by ~100bps due to US tariffs and elevated employee costs from restructuring and digital investments. Growth was broad-based across geographies except Southeast Asia and Europe. Management highlighted successful mitigation of the 50% US tariff through cost actions and price increases, expecting margin recovery from Q2 FY27 as high-cost inventory bleeds out. Europe is being resized for profitability, not just breakeven. Domestic demand remains robust with low double-digit growth expected. Key risks include raw material inflation (copper, steel) and sustained Chinese competition in the low-end segment. The upcoming analyst meet in February may provide medium-term guidance.
Colored figures show movement against the previous available record.
Guidance to track
- High-cost inventory from 50% tariff will bleed out by early Q2 FY27; margin recovery expected thereafter.
- After restructuring, European operations will move beyond breakeven to profitability next financial year.
- Management expects India to grow at low double-digit rates, subject to global uncertainties.
- New low-cost screw compressor range, priced 30-40% lower, expected to launch in Q2 FY27 (may slip from Q1).
Risks flagged
- Rising copper, aluminum, and steel prices could pressure margins if not passed through.
- Chinese imports hold 25-30% volume share in India's low-end segment; new product launch may not fully offset.
- Six months of inventory is above normal; inventory normalization may take until Q2 FY27, delaying margin recovery.
- European market remains weak; cost restructuring may not fully compensate if demand deteriorates further.
Key quotes
- We have improved our profitability, our sales has grown by 18%. But the EBITDA should have been close to 2,000 million but it's actually around 1,400.
- We have passed that tariff in terms of local competition... nothing is really fully manufactured in the US even the local assemblers are importing quite a bit from all over the world.
- The challenge for Elgi is to get in front of the customer more often. Now this pricing or the cost advantage that we have now got... is going to give us that degree of freedom.
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