Transcript

August 20, 2026 National Stock Exchange of India Limited (NSE) BSE Limited (BSE) Exchange Plaza, Phiroze Jeejeebhoy Towers, C-1, Block G Bandra Kurla Complex Dalal Street, Fort, Bandra (E), Mumbai - 400 051 Mumbai - 400 001 NSE Scrip Code: ELGIEQUIP BSE Scrip Code: 522074 Dear Sir/Madam, Subject: Transcript of Q1 - 2026-27 Analyst/ Investor Con-call held on August 14, 2026 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of Q1-2026-27 Analysts/Investor Con- call held on Friday, August 14, 2026. The aforesaid information is also being made available on the Company’s website at https://www.elgi.com/in/investors/analyst-conferences/. The above is for your information and record. Thanking you, Yours faithfully FOR ELGI EQUIPMENTS LIMITED ROHIT GUPTE COMPANY SECRETARY AND COMPLIANCE OFFICER MEMBERSHIP NO.: A12422 Encl.: as above Q1 2026-27 – INVESTOR MEET MANAGEMENT: MR. JAIRAM VARADARAJ – MANAGING DIRECTOR MODERATOR: ASIAN MARKETS SECURITIES LIMITED Moderator: Good afternoon, everyone. On behalf of Asian markets, we welcome you all to the Q1FY27 post-results webinar of ELGI Equipments Limited. We have with us Mr. Jairam Varadaraj, Managing Director, representing the company. I'll request Mr. Jairam to take us through the presentation and the overview of the results, following which we will start the Q&A session. Over to you, sir. Thank you. Management: Thank you, Kamlesh. Thank you, Asian Market Securities for organizing it. Ladies and gentlemen, it's a pleasure for me to be with you. I hope you're able to see my screen because I'm having difficulty seeing my own screen. Just give me a minute. Moderator: Sir, we are able to see your screen, sir. Management: Okay. Perfect. So, thank you again. I apologize for this bit of a challenge here. I changed the format for this year, starting on the revenue and then moving to the EBITDA. So, I want to look at Q1 revenue numbers compared to Q1 of last year. We grew by about 23% and after that 7% was exchange related. Across the board, we had growth. I'll come back and talk about region-wise performance. EBITDA, we grew by 28%. This has been good. I'll again talk in greater detail about the constituents of it. Moving on, on a sales mix, by and large the same between compressors and automotive equipment, and by and large the same split between India and the rest of the world. We have introduced this slide to give you a sense of where our growth is coming from. So, if you look at India standalone, we have grown by about 28%. North America, we have grown by 37%. Europe, we grew by 21% and Australia, 7%, I mean, sorry 17%. So, across the board we have had some good growth. So, despite a strong growth in India, we've been able to maintain the split between India and rest of the world by virtue of growth in other geographies as well. Moving into the classical EBITDA reconciliation that we normally present. If you look at it, we have carved out exchange because there was a significant impact of exchange during the quarter. So, we have had a good volume impact. We had a contribution- negative primarily because of raw material cost increases, tariffs, and product mix. We have responded to this by cost reduction. We have also responded by price correction in the market. But the price correction we expect to see towards the end of the second quarter and more fully in the third quarter. So by and large, we are confident that we have mitigated this. We started off the year thinking that there will be a 3% to 4% increase in material cost, cost by commodity, metal commodity prices, but in reality it was 5%. Then there was a possibility that it could go to 9%. We have taken 9% and we have taken some corrective measures. So, we are confident that there will not be any impact. So even this quarter, we have maintained our EBITDA percentage same as last year. In fact, we have slightly better. I think it will only continue to improve into the future. So, this is the thing on employee cost, even though the increases seem significant, primarily it's an increment that we have given across the world. So overall cost is well within control. The same thing with other expenses, there's a 12% increase primarily because we have gone and taken on some rental premises for our motor plant, as well as, you know, what we sold, the facilities that we sold in the US, we have moved into rental facilities. Moving on to the full financials, our PAT is at 9.7%, roughly similar as the Q1 of last year. And this is with some exceptional reorganization cost. We are going through some reorganization in Australia, in Europe, and a little bit in the US. And we think there will be a little bit of these costs continuing into the year. But, you know, the benefit of doing this is, you know, a very short time and it's good for the company. So, we're not too concerned about this. Net cash position in the company continues to be very strong. Our CAPEX, one is our MK2, which is our program for shifting our campus to the new campus from our city factory. That's been about half of the CAPEX is towards that. And the other is we bought some land in Italy, which was contracted six years ago that we had to make that commitment and some equipment, normal CAPEX in the factory. So, this is really what I wanted to present to you. I will now give an overall view of the sales numbers starting from Australia. Australia was a bit muted relative to the other geographies. We've had some challenges in our service business in our distribution of operations. We are working towards resetting the processes, reorganizing them. We are confident by the third and fourth quarter, we will be back to where they are supposed to be. Moving down, Southeast Asia continues to be a bit of a challenge. Part of our restructuring cost is also towards Southeast Asia. Market is big, but there are still challenges for an Indian brand in that market. We are working on different strategies there. So, it's a longer-term play. It's not a significant contributor. Coming to India, India did well across all verticals, whether it is industrial, portables, aftermarket, vacuum, all of them have done well in the quarter and we expect to continue to do at this level, though the growth rates may be less because our first quarter was, last year was a bit of a muted quarter and we had very strong second, third and fourth quarters. So, the growth rates may not be as attractive as we have had in the first quarter, but we'll continue to grow. In India, we have made some strong inroads into some of the growth sectors like EV. Our growth in EV has been pretty significant. Our growth in the renewable energy segment has been pretty significant. And the growth in semiconductor ecosystem has also been significant. So, we are riding on some of the industry waves that are happening in India. Europe is more of a P&L play for us right now. We have done all of it to make sure that it is breaking even, stays there, and it is staying there. There are some initiatives to grow the top line. We have made plans to enter into Germany and a little bit more emphasis into Eastern Europe. So, there will be tighter control over costs, even while we try and grow some of the geographies and products. So again, Europe is going to show up in the medium term. It will come back to where it's supposed to be. North America was a good story. Our distribution business is not doing as well as it should be, primarily on the service side. We are working on a few initiatives. All the other businesses have done well in North America, and we expect that this momentum will continue into the future as well. So, this is really the overall summary of our performance for the first quarter. Our project to enter into what we call the tier 4 segment in the bottom of the pyramid, bottom of the industrial pyramid, where we are been facing very low-cost compressors from China. We a [Showing first 8,000 characters — download PDF for full document]