ELGIEQUIP — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

ASIAN MARKETS SECURITIES LIMITED

Good morning, everyone.

On behalf of Asian Markets, we welcome you all to the Q4 and FY 25-26 earnings webinar of Elgi Equipments Limited.

We have with us today Mr. Jairam Varadaraj, Managing Director, representing the company.

I request Mr. Jairam to take us through the Fourth quarter and yearly numbers presentation, followed by a Q&A session.

Over to you, sir.

Thank you.

Thank you, sir, for your opening remarks.

We'll just wait for a couple of minutes for the question queue to assemble before we take in the first question.

Sir, first question, I'll take it from the line of Mr. Harshit.

Harshit, you may unmute yourself and go ahead with your question.

Harshit Patel: · Understood. Lastly, a book-keeping one. Was there any one-off in the other expenses in this quarter?

Thank you very much for the opportunity, sir, and congratulations on a very good quarter, sir.

Good, good, good, sir.

Sir, firstly, on the realizations, what was the blended realization growth for us in FY26, combining both price increases that we would have taken and any improvement in the product mix?

I believe that default inbuilt stabilizer would have helped overall pricing especially in the second half of the year.

Understood.

So just a follow up on that.

If we were to maintain the gross margins at the current FY26 levels, what kind of price hikes are required for FY27?

Believing that the commodities will stay where they are right now.

Obviously, some part of the backward integration that we are doing those initiatives would help, but what kind of realization growth will have to happen?

Understood.

Lastly, a book-keeping one.

Was there any one-off in the other expenses in this quarter?

I am asking this because other expenses at the standalone level increased sharply while the growth was not that sharp at the consolidated level.

You mentioned about bringing back those shared services to India, was it attributable to that?

Understood, sir.

Perfect.

Thank you very much for answering my questions.

I'll come back into it.

Moderator · Conference Operator

Thank you, Harshit.

Next, next question, we'll take it from the line of Mr. Ravi Swaminathan.

Ravi, you may unmute yourself and go ahead with your question.

Ravi Swaminathan: · Understood, sir. And with respect to some of the emerging sectors like data centres, etc, how is our

Yeah, hi, sir.

Good morning.

Congrats on a very good set of numbers.

I'm doing great, sir.

My first question is with respect to the demand scenario in India, with respect to the traditional sectors of CapEx, like steel, cement, textile, etc. The general commentary has been that there is a recovery that is there in the CapEx, and you have also been highlighting it over the past few quarters.

Do you see that accelerating, maintaining at the same place, or even decelerating?

What's your sense on it?

Understood, sir.

And with respect to some of the emerging sectors like data centres, etc, how is our role panning out there?

That's a market which is seeing significant amount of growth and many of the capital goods producers or some way or the other trying to get some business out of it.

How are we

Understood, sir, and my final question is with respect to the US business, post the tariffs getting brought down, is the overall market seeing a recovery and how is our market share journey there

Understood, sir.

Got it, yeah.

Thanks, a lot.

Moderator · Conference Operator

Thank you, Ravi.

Sir, the next question we will take it from the line of Gokul Maheshwari.

Gokul, you may unmute yourself and go ahead with your question.

Gokul Maheshwari

Thank you for the opportunity.

Sir, could you just comment on the industry structure?

Are you seeing any changes in competition, whether from at the lower end with respect to some of the Chinese players or also with respect to MNCs or other Indian companies who have increased capacities? and whether that is leading to a different industry structure in the compressor market.

Moderator · Conference Operator

Thank you, Gokul.

Sir, the next question we'll take is from the line of Mr. Bala Subramanian.

Bala, you may unmute yourself and go ahead with your question.

Bala Subramanian

Good morning, sir.

Thank you so much for the opportunity.

Sir, my first question, we are working on a new technology in vacuum.

So, the market size is around $3 billion, which is larger than compressors in some segments.

So, I'm trying to understand what specific applications are customer pain point, in your new vacuum technologies targeting where the competitors ignored.

Moderator · Conference Operator

Thank you, Bala.

Sir, while we wait for a few questions to come on call, I'll take a few questions from the chat, sir.

One minute, sir.

So, there's a question from Mike.

What are the key underlying drivers of demand for compressors in India and America, example by industry?

Thank you, sir.

The next question is from Sentil Kumar in the chat.

For the past year, starting from Trump tariff, Russia war, then came the Labour code and now with Iran-US war, so much uncertainty over the period.

So, now can we say that we have weathered out all and are going to, Going forward, all can be good years coming, sir.

So, the next question in chat is from Mr. Vipul Kumar: So, what is the progress on introducing low-cost compressors in response to Chinese compressors?

Sir, can you quantify Forex gains for this quarter and the year, please?

Sure, so can you give the EBITDA performance for Europe for the quarter and the year?

So now I take the question from the line of Mr. Salil Desai.

Salil, you may unmute yourself and go ahead with your question.

Salil Desai

Thanks, Kamlesh.

Good morning, Dr. Jairam.

Moderator · Conference Operator

Thank you, Salil.

Sir, I'll open the line of Kamlesh ji for his questions.

Kamlesh Ji.

Thank you so much, sir.

Participants, you may disconnect your line.

Thank you.

Kamlesh Kotak

Thank you, everyone.

Thank you.

Questions and answers

14:35:46 +05'30' · Research Analyst

Q4 2025-26 – INVESTOR MEET