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Sat, 15 Aug 2026
02:20:52 pm
Sat, 15 Aug 2026
02:20:52 pm
Rudransh Sangwan
Published at: August 14, 2026, 5:43 AM
Synopsis
Elgi Equipments share price rose today as the stock gained market attention, with investors tracking its strong quarterly performance, revenue growth, profitability and outlook for the industrial compressor business.
Elgi Equipments is among the industrial stocks drawing attention in the Indian market as investors track the company's position in the global air compressor industry and its continued expansion in India. The company, which has been operating since 1960, manufactures and supplies air compressors and automotive equipment and also provides related after-sales services. It is the sixth-largest air compressor manufacturer globally and the second-largest in India, giving it an established position in an industry linked to manufacturing, infrastructure and industrial activity.
The company's recent performance has added to the interest around the stock. Elgi Equipments has delivered sustained growth in revenue and profitability over the longer term, while its latest quarterly performance has also remained strong. Sales have grown at a 15% CAGR over five years, while profit has increased at a 31% CAGR during the same period. TTM sales growth stands at 16% and TTM profit growth at 28%. The company has also maintained a 15% operating margin in FY26 and on a TTM basis, making earnings growth and margin stability important factors for investors to track.
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Elgi Equipments shares at ₹608, with the stock's 52-week range standing between ₹408 and ₹634. The company has a market capitalisation of ₹19,270 crore and trades at a P/E of 41.6. Its book value is ₹70.4, while ROCE stands at 22.1% and ROE at 19%. The stock has delivered a 20.73% return over one year and 193.92% over five years based on the supplied data.
| Metric | Value |
|---|---|
| Current Price | ₹608 |
| 52-Week High | ₹634 |
| 52-Week Low | ₹408 |
| Market Cap | ₹19,270 crore |
| P/E | 41.6 |
| Book Value | ₹70.4 |
| Price/Book | 8.60x |
| Dividend Yield | 0.46% |
| ROCE | 22.1% |
| ROE | 19.0% |
Elgi Equipments reported June 2026 sales of ₹1,062 crore, up 22.56% from ₹867 crore in the same quarter a year earlier. Operating profit increased to ₹155 crore from ₹121 crore, while the operating margin improved to 15% from 14%. Profit before tax rose to ₹140 crore from ₹118 crore and net profit increased 27% to ₹103 crore from ₹86 crore. EPS also increased to ₹3.26 from ₹2.70. The quarter showed profit growing faster than revenue, while the operating margin remained at the stronger end of the company's recent quarterly range.
| Metric | Q1 FY26 | Q1 FY27 | YoY Change |
|---|---|---|---|
| Sales | ₹867 crore | ₹1,062 crore | 22.56% |
| Operating Profit | ₹121 crore | ₹155 crore | 28.1% |
| Operating Margin | 14% | 15% | +1 pp |
| Profit Before Tax | ₹118 crore | ₹140 crore | 18.6% |
| Net Profit | ₹86 crore | ₹103 crore | 27.0% |
| EPS | ₹2.70 | ₹3.26 | 20.7% |
Elgi Equipments has expanded its business substantially over the past several years. Sales increased from ₹1,924 crore in FY21 to ₹3,951 crore in FY26, while TTM sales have reached ₹4,146 crore. The company has recorded a 15% sales CAGR over five years and a 31% profit CAGR over the same period. Net profit increased from ₹102 crore in FY21 to ₹430 crore in FY26, with TTM profit reaching ₹448 crore. Operating profit has also increased from ₹217 crore in FY21 to ₹583 crore in FY26 and ₹612 crore on a TTM basis, while the operating margin has remained at 15% in FY25, FY26 and TTM.
| Financial Metric | FY21 | FY25 | FY26 | TTM |
|---|---|---|---|---|
| Sales | ₹1,924 crore | ₹3,510 crore | ₹3,951 crore | ₹4,146 crore |
| Operating Profit | ₹217 crore | ₹529 crore | ₹583 crore | ₹612 crore |
| Operating Margin | 11% | 15% | 15% | 15% |
| Net Profit | ₹102 crore | ₹350 crore | ₹430 crore | ₹448 crore |
| EPS | ₹3.23 | ₹11.05 | ₹13.57 | ₹14.13 |
Elgi Equipments manufactures air compressors and automotive equipment and provides related after-sales services. Its position as the second-largest air compressor manufacturer in India and sixth-largest globally gives the company exposure to industrial demand across multiple markets. The longer-term financial data shows sales growth of 11% over 10 years and 9% over three years, while the recent TTM figures show sales growth accelerating to 16%. Profit growth has also remained strong, with a 22% CAGR over 10 years, 31% over five years and 28% on a TTM basis. Continued industrial activity, expansion of the compressor business and sustained demand across its markets will remain relevant to future growth.
Elgi Equipments trades at a P/E of 41.6 and around 8.6 times its book value of ₹70.4. ROE stands at 19%, while ROCE is 22.1%. The valuation is elevated on a book-value basis, making continued earnings growth important for the stock. The company has maintained a dividend payout of around 20% in recent years, while the current dividend yield is 0.46%. The stock has delivered a 21% CAGR over 10 years and 23% over five years, while its three-year CAGR is 6% and one-year return is 20.73%.
| Period | Stock Price Return |
|---|---|
| 1 Day | 5.13% |
| 5 Days | 2.50% |
| 1 Month | 5.37% |
| 6 Months | 18.54% |
| 1 Year | 20.73% |
| 5 Years | 193.92% |
Elgi Equipments trades at a P/E of 41.6 compared with 61.1 for Cummins India and 53.4 for Kirloskar Oil Engines. Its quarterly sales growth of 22.56% is above the 19.1% median in the supplied peer comparison. Its ROCE of 22.1% is below Cummins India's 39.5% and Ingersoll-Rand India's 57.1%, but remains above several other companies in the comparison.
| Company | P/E | Qtr Sales Growth | Qtr Profit Growth | ROCE |
|---|---|---|---|---|
| Cummins India | 61.06 | 17.86% | 2.54% | 39.50% |
| Kirloskar Oil Engines | 53.44 | 13.49% | -17.08% | 14.55% |
| Elgi Equipments | 41.57 | 22.56% | 27.00% | 22.07% |
| Kirloskar Brothers | 37.82 | 12.86% | -0.46% | 20.35% |
| Ingersoll-Rand India | 53.83 | 20.34% | 19.46% | 57.11% |
| KSB | 53.53 | 3.60% | -18.75% | 24.70% |
| Kirloskar Pneumatic | 36.52 | 10.40% | 21.35% | 30.30% |
The stock's valuation remains an important factor, with the shares trading at 8.6 times book value and a P/E of 41.6. The supplied data also flags that the company might be capitalising interest costs, which investors can examine in its financial statements. While the company's longer-term earnings growth has been strong, its three-year stock price CAGR of 6% is lower than the 23% five-year CAGR. Future returns will therefore depend on how earnings growth, margins and valuation develop.
Elgi Equipments has shown strong revenue growth, rising profitability and stable operating margins across its recent financial periods. June 2026 sales increased 22.56% year on year, while net profit rose 27%, with the operating margin improving to 15%. Over five years, sales have grown at a 15% CAGR and profit at 31%. The stock's current valuation and proximity to its 52-week high make future earnings growth and margin performance important factors to watch. Investors tracking Elgi Equipments should monitor quarterly revenue growth, operating margins, profitability, return ratios and whether the company's industrial compressor business continues to support its long-term growth.
Elgi Equipments shares were at ₹608 based on the supplied market data.
Elgi Equipments has a supplied 52-week range of ₹408 to ₹634.
Elgi Equipments reported sales of ₹1,062 crore in June 2026, up 22.56% year on year. Net profit increased 27% to ₹103 crore, while operating profit rose to ₹155 crore.
Elgi Equipments has a P/E ratio of 41.6 based on the supplied market data.
The company's market capitalisation is approximately ₹19,270 crore.
Elgi Equipments has an ROE of 19% and ROCE of 22.1% based on the supplied data.
Elgi Equipments manufactures and supplies air compressors and automotive equipment and also provides related after-sales services.
Elgi Equipments is the sixth-largest air compressor manufacturer globally and the second-largest in India, according to the supplied company information.
The company has recorded a 15% sales CAGR and 31% profit CAGR over five years. TTM sales growth is 16%, while TTM profit growth is 28%.
Investors should monitor quarterly revenue growth, operating margins, profitability, return ratios, industrial demand and valuation, particularly as the stock trades near its 52-week high.
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