Incorporated in 1960, Elgi Equipments Limited, along with its subsidiaries, is in the business of manufacturing and supplying Air Compressors & Automotive Equipments. The Company is the 6th largest air compressor manufacturer globally and the 2nd largest in India. Elgi Equipments Ltd. is a global leader in air compressors, operating in over 120 countries with 2 manufacturing facilities in India and Italy.
The company has established itself as a prominent player in the compressed air solutions industry, serving diverse sectors including manufacturing, construction, automotive, textile, agriculture, and healthcare. Elgi Equipments Limited manufactures and sells air compressors and related parts in India, Europe, Australia, the United States, and internationally. It operates through two segments: Air Compressors and Automotive Equipments.
Elgi Equipments operates through two primary business segments. The company offers oil lubricated screw and piston air compressors, oil free piston and screw air compressors, rotary and reciprocating air compressors, diesel and electric portable air compressors, railway air compressors, heat recovery systems, and medical air compressors and vacuum pumps, as well as air accessories. The company also provides comprehensive after-sales services including installation, maintenance, repair, and related support services.
In addition to its core air compressor business, the company is also involved in the trading of air compressors, nitrogen systems, and altitude training systems; manufacture and trading of automotive garage equipment, compressed air systems, and vacuum pumps for medical applications. The automotive equipment segment complements the company's air compressor offerings, providing integrated solutions for various industrial applications.
Elgi Equipments Ltd has a market capitalization of ₹17,012 Crore as on June 27, 2025. The company has demonstrated consistent growth trajectory over the years, with operating revenue of ₹3,510.41 Crore on a trailing 12-month basis. An annual revenue growth of 9% is good, Pre-tax margin of 14% is healthy, ROE of 18% is exceptional.
For the latest quarter Q3 FY25, Elgi Equipments Ltd's revenue jumped 3.38% since last year same period to ₹862.93 Crore. However, Elgi Equipments Ltd's net profit fell -3.93% since last year same period to ₹80.58 Crore. The company's TTM profit after tax stands at ₹350 Crore, reflecting the company's ability to maintain profitability despite market challenges.
- Market Cap: ₹17,012 Crore as on June 27, 2025
- Revenue (TTM): ₹3,510.41 Crore
- Net Profit (TTM): ₹350 Crore
- Q3 FY25 Revenue: ₹862.93 Crore
- Q3 FY25 Net Profit: ₹80.58 Crore
- Annual Revenue Growth: 9%
- ROE: 18%
The stock trades at premium valuations reflecting its market leadership position. The P/E ratio of Elgi Equipments Ltd is 48.58 times as on June 27, 2025, a 9% premium to its peers' median range of 44.68 times. The P/B ratio of Elgi Equipments Ltd is 9.12 times as on June 27, 2025, a 2% premium to its peers' median range of 8.98 times.
The company's dividend yield stands at 0.45%, with dividend of ₹2 declared in the quarter ending March 2024, providing investors with regular income alongside capital appreciation potential.
The promoters of Elgi Equipments Ltd are Dark Horse Portfolio Investment Private Limited and Jairam Varadaraj. They collectively own 29.01% of the total equity. Promoter holding in Elgi Equipments Ltd has gone up to 31.19% as of March 2025 from 31.19% as of June 2024. The promoters of Elgi Equipments Ltd have pledged 0.21% of the total equity as on March 2025.
Elgi Equipments Ltd has given a return of 11.04% in the last 3 years. The stock has shown resilience despite market volatility, with 52-week high share price of ₹799.00 and 52-week low share price of ₹390.05. The company is debt-free and has a strong balance sheet, enabling it to report stable earnings growth across business cycles.
Elgi Equipments has received reaffirmation in credit ratings from CRISIL for bank facilities of ₹557.4 Crore at CRISIL AA; Stable/ CRISIL A1+. This strong credit rating reflects the company's robust financial position and ability to meet its debt obligations.
Elgi remains focused on turning around its European business in FY25 and expects revenue and earnings CAGR of 14% and 21% over FY23-26. The company continues to invest in technology and expansion to maintain its competitive position in the global air compressor market.
As per Value Research classification, it is a Mid Cap company. The stock is part of major indices including BSE 500, BSE Capital Goods, Nifty 500, BSE SmallCap, BSE Allcap, BSE Industrials, BSE SmallCap Select Index, BSE 250 SmallCap Index, BSE 400 MidSmallCap Index, Nifty MidSmallcap 400, Nifty Smallcap 250, Nifty 500 Multicap 50:25:25, Nifty Total Market, reflecting its importance in the Indian equity markets.
