ELGI Equipments Limited (ELGIEQUIP) AI Stock Analysis

ELGI Equipments Limited

(NSE:ELGIEQUIP)

Select Model

Rating:72Outperform

Price Target:INR 565.00▲(7.70% Upside)

Action:reiterated

Date:08/28/26

The score is primarily supported by strong financial performance—especially balance sheet conservatism and improving cash generation—tempered by a notable 2026 operating-profit step-down that increases margin-sustainability risk. Technicals are neutral-to-mildly positive, but the overall score is held back by a rich valuation (high P/E and low yield).

Positive Factors

Steady Revenue GrowthConsistent multi-year revenue expansion indicates sustained demand for ELGI’s compressed-air equipment and related solutions. Although growth moderated recently, continued top-line progress supports market relevance, provides a base for recurring aftermarket activity, and creates opportunities to leverage the installed customer base over time.

Negative Factors

Operating Profit VolatilityA sharp operating-profit decline despite higher revenue and net income raises a durable question about margin sustainability. If higher costs or other operating pressures persist, earnings may become less predictable, limiting internal funding capacity and reducing the benefit of continued sales growth.

ELGI Equipments Limited (ELGIEQUIP) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 160.55B
Dividend Yield: 0.53%
Average Volume (3M): 47.12K
Price to Earnings (P/E): 35.8
Beta (1Y): 1.33
Revenue Growth: 15.94%
EPS Growth: 23.70%
Country: India
Employees: 1,432
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

ELGI Equipments Limited Business Overview & Revenue Model

Company Description

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. The company offers oil...

How the Company Makes Money

ELGI Equipments Limited primarily makes money by selling compressed-air equipment, led by industrial air compressors and associated compressed-air system products. Revenue is generated from (1) equipment sales to industrial and commercial customers (...

ELGI Equipments Limited Financial Statement Overview

Summary

Overall financials are strong: steady multi-year revenue growth, improving leverage (healthier debt-to-equity trend), and materially better operating/free cash flow in the most recent year. The key risk is profitability volatility—2026 showed a sharp drop in operating profit despite higher revenue and net income, raising questions about cost pressure and margin sustainability.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

86Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	41.46B	39.51B	35.10B	32.18B	30.41B	25.25B
Gross Profit	16.38B	11.55B	17.64B	16.20B	14.71B	11.37B
EBITDA	7.00B	6.89B	5.31B	4.91B	4.37B	2.96B
Net Income	4.48B	4.30B	3.50B	3.12B	3.71B	1.78B
Balance Sheet
Total Assets	0	35.45B	30.41B	28.21B	25.02B	19.65B
Cash, Cash Equivalents and Short-Term Investments	8.87B	9.29B	9.10B	7.75B	5.71B	2.80B
Total Debt	0	5.33B	5.77B	6.38B	5.77B	4.36B
Total Liabilities	-22.32B	13.14B	11.76B	12.10B	11.30B	9.32B
Stockholders Equity	22.32B	22.32B	18.66B	16.11B	13.71B	10.33B
Cash Flow
Free Cash Flow	2.01B	3.42B	3.13B	2.46B	969.11M	280.26M
Operating Cash Flow	2.65B	4.97B	4.08B	2.95B	1.66B	685.62M
Investing Cash Flow	9.00M	-1.67B	-3.31B	-1.39B	-2.17B	19.03M
Financing Cash Flow	-2.20B	-2.86B	-1.85B	-519.37M	598.20M	-812.10M

ELGI Equipments Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price524.60

Price Trends

50DMA592.79Negative

100DMA591.24Negative

200DMA549.88Negative

Market Momentum

MACD-24.23Positive

RSI28.74Positive

STOCH10.59Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELGIEQUIP, the sentiment is Negative. The current price of 524.60 is below the 20-day moving average (MA) of 555.73, below the 50-day MA of 592.79, and below the 200-day MA of 549.88, indicating a bearish trend. The MACD of -24.23 indicates Positive momentum. The RSI at 28.74 is Positive, neither overbought nor oversold. The STOCH value of 10.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ELGIEQUIP.

ELGI Equipments Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ELGIEQUIP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KIRLOSBROS	76Outperform	INR 127.28B	33.82	―	0.44%	10.85%	-4.06%
IN:ELGIEQUIP	72Outperform	INR 161.31B	35.85	―	0.53%	15.94%	23.70%
IN:INGERRAND	72Outperform	INR 127.38B	47.54	―	1.86%	8.28%	1.08%
IN:KIRLOSENG	69Neutral	INR 261.95B	47.81	―	0.50%	22.66%	15.61%
IN:KIRLPNU	66Neutral	INR 69.94B	26.95	―	1.11%	9.10%	38.69%
IN:KSB	58Neutral	INR 113.26B	1.31	―	0.67%	4.63%	-4.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:ELGIEQUIP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ELGIEQUIP	ELGI Equipments Limited	509.00	14.81	3.00%
IN:INGERRAND	Ingersoll-Rand (India) Limited	4035.25	327.85	8.84%
IN:KIRLOSBROS	Kirloskar Brothers Ltd.	1602.85	-280.48	-14.89%
IN:KIRLOSENG	Kirloskar Oil Engines Limited	1799.50	783.34	77.09%
IN:KIRLPNU	Kirloskar Pneumatic Co. Ltd.	538.15	-16.52	-2.98%
IN:KSB	KSB Ltd.	650.75	-130.49	-16.70%

ELGI Equipments Limited Corporate Events

Elgi Equipments Receives Independent ESG Rating of “64 Performer”

Sep 13, 2026

Elgi Equipments Limited disclosed that Niche99 ESG Ratings, a SEBI-registered Category II ESG ratings provider, has independently assigned the company an ESG score of “64 Performer” based solely on publicly available information. Elgi cla...

Elgi Equipments’ U.S. Arm Receives ₹14.82 Crore Tariff Refund

Aug 29, 2026

Elgi Equipments Limited’s U.S. subsidiary, Elgi Compressors USA Inc., has received a further tariff refund of US$ 1.55 million, or about ₹14.82 crore, from U.S. Customs and Border Protection. The refund stems from a directive of the U.S....

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

ELGI Equipments Limited AI Stock Analysis