Risks
4 risks
Risk Intelligence
Raw material price inflation
View Risks →
Elgi Equipments Limited — Q3 FY26
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.
neutral
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
एल्जी इक्विपमेंट्स ने तीसरी तिमाही में कमाई में 18% का उछाल दर्ज किया, मुनाफा 30% बढ़ा। लेकिन अमेरिकी टैरिफ और कर्मचारियों पर बढ़े खर्च के कारण कमाई पर दबाव पड़ा। कंपनी ने अमेरिकी टैरिफ का असर कम करने के लिए लागत घटाई और कीमतें बढ़ाईं, अगली तिमाही से मुनाफा सुधरने की उम्मीद है। यूरोप में घाटा कम करने पर ध्यान है, जबकि भारत में मांग मजबूत बनी हुई है। जोखिमों में तांबा-स्टील के दाम बढ़ना और चीनी कंपनियों से सस्ते उत्पादों की चुनौती शामिल है। फरवरी में होने वाली बैठक में आगे की योजना साझा हो सकती है।
Risks4 trackedTranscriptfull text
Research workspace
Focused Modules
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Revenue Growth (YoY)
18%
+18% YoY
Consolidated revenue grew 18% year-over-year, driven by India and export replenishment.
PBT Growth (YoY)
30%
+30% YoY
Profit before tax grew 30% YoY, despite tariff impact and restructuring costs.
US Tariff Impact on EBITDA Margin
~100 bps
-100 bps YoY
Tariffs reduced EBITDA margin by ~1 percentage point in Q3; expected to taper from Q2 FY27.
Low-Cost Screw Compressor Price Gap
30-40% lower
N/A
New low-cost screw compressor range priced 30-40% below current models to counter Chinese imports.
Fast read
Guidance and risk preview
High-cost inventory from 50% tariff will bleed out by early Q2 FY27; margin recovery expected thereafter.
Rising copper, aluminum, and steel prices could pressure margins if not passed through.
View Risks →