Elgi Equipments Q2 FY27 Results (NSE: ELGIEQUIP)
Signal: Margin pressure
The read
The quarter shows strong parent-led demand but weaker group profit conversion: consolidated revenue grew 17.2% YoY while EBITDA grew only 8.9% and margin fell 130bps YoY, although the 17.7% margin improved 170bps QoQ; the key watch is whether raw-material intensity reverses after rising to 40.1% of revenue from 34.0%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,134.3 Cr | +17.2% | +6.8% |
| EBIT | ₹174.9 Cr | +6.9% | |
| Net profit | ₹128.3 Cr | +5.7% | |
| EPS | ₹4.07 | +5.7% | |
| EBIT margin | 17.7% |
P&L walk
Revenue grew 17.2% YoY to 11343 million, but EBITDA rose only 8.9% to 2007 million as gross margin contracted 106bps; lower finance cost was offset by a 37 million exceptional charge and other income fell 59.9%, leaving PAT up 5.7% to 1283 million.
Key positives
- Consolidated revenue reached 11343 million, up 17.2% YoY and 6.8% QoQ, while standalone revenue grew 24.6% YoY to 7080 million.
- Standalone EBITDA increased 20.0% YoY to 1301 million as employee and other expenses rose 7.3%, well below revenue growth of 24.6%.
- Consolidated finance costs declined 30.0% YoY to 49 million, and H1 operating cash flow increased to 1673 million from 898 million.
Key concerns
- Consolidated EBITDA grew 8.9% YoY to 2007 million versus revenue growth of 17.2%, with EBITDA margin contracting 130bps to 17.7%.
- Raw materials consumed increased to 40.1% of consolidated revenue from 34.0% YoY, while gross margin declined 106bps to 50.8%.
- Consolidated PAT growth of 5.7% to 1283 million lagged standalone PAT growth of 41.9% to 1289 million, highlighting a material group-level drag.
Research and educational content only. Not investment advice.