Ellenbarrie Industrial Gases Limited – Investor Presentation Summary

Key Operational Highlights

  • Core Gases revenue grew 14.2% year-on-year in FY26 to ₹3,340 million and 8.6% quarter-on-quarter in Q4FY26.
  • Segment result margin for the gases business reached 40.0% in Q4FY26 and 38.4% for FY26, representing an expansion of 680 basis points year-on-year and 540 basis points for the full year.
  • Merchant plant Uluberia 2 ramp-up is progressing well, with focus on increasing capacity utilization further into FY27.
  • A new on-site plant in East India with 320 TPD capacity is expected to be operational in June 2026, with revenues expected to start in H2FY27.
  • New merchant plants in North India (220 TPD, H2 2027) and West/Central India (capacity TBD, FY28 onwards) are planned.
  • Signed a 25-year power purchase agreement with Pattikonda Renewables to source power from a 6 MW wind-solar hybrid plant in Andhra Pradesh, investing ₹70.8 million for a 26% stake.
  • Argon prices recovered in the second half of Q4FY26 but remained below H1FY26 levels.

Key drivers of operational performance: Scaling existing plants, new capacity additions, and product mix optimization.

Segment-wise Performance

  • Gases, related products & services segment revenue: Q4FY26 ₹860 million (up 8.3% YoY, 8.6% QoQ), FY26 ₹3,340 million (up 14.2% YoY).
  • Project engineering (non-core) revenue declined 62% as the division refocused on internal execution for new plant builds.

Explanation of significant changes in segment performance: Growth in the core gases segment was driven by increased capacity utilization and market demand, while the project engineering division was deliberately scaled back to focus on internal projects.

Financial Highlights

  • Revenue: FY26 ₹3,916 million (up 12% from FY25 ₹3,484 million)
  • EBITDA: FY26 ₹1,166 million (up 4% from FY25 ₹1,119 million); Q4FY26 ₹258 million
  • PAT: FY26 ₹1,044 million (up 25% from FY25 ₹833 million); Q4FY26 ₹229 million
  • EPS: FY26 ₹7.5 (up from FY25 ₹6.0)
  • Margins: EBITDA Margin FY26 34% (down from FY25 36%); Gross Margin FY26 67% (up from FY25 65%); PAT Margin FY26 27% (up from FY25 24%)
  • YoY/QoQ comparison: Q4FY26 revenue growth of 9% YoY; PAT growth of 26% YoY in Q4FY26

Drivers of financial performance: Higher revenue growth in core gases business, operational efficiencies leading to margin expansion, and lower finance costs.

Key Risks: Softness in Argon prices, near-term pressure on industrial activity from the broader macro environment.

Geographical Revenue Split

  • Domestic vs Export/Regional Revenue: Not Specified
  • Regional Breakdown: Not Specified

Balance Sheet Snapshot

  • Net Debt/Equity: Not Specified
  • Reserves: FY26 Shareholder's equity ₹9,771 million (up from FY25 ₹4,934 million)
  • Current Assets/Liabilities: FY26 Current Assets ₹2,990 million, Current Liabilities ₹1,867 million
  • Working Capital/Leverage Metrics: FY26 Borrowings (current + non-current) ₹1,801 million (down from FY25 ₹2,453 million)

Financial Health Insights: Strong equity growth, reduced borrowing levels, improved liquidity position with cash and cash equivalents of ₹709 million in FY26.

Capex & Cash Flow Health

  • Capital Expenditure: FY27 Guidance: ₹2,500 million
  • Free Cash Flow: Not Specified
  • Operating Cash Flow: Not Specified
  • Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion through new plants in North India and West/Central India, and technology upgrades through power cost optimization.

Strategic & R&D Initiatives

  • Investments in Innovation: Power purchase agreement for renewable energy sourcing, hydrogen production capabilities at Uluberia II plant.
  • Expected impact on growth: New plants expected to contribute to revenue growth from H2FY27 onwards; renewable power expected to reduce costs from FY27.
  • Strategic Rationale: Expanding into high-growth markets, reducing operational costs through renewable energy, and optimizing product mix.

Industry Trends & Business Environment

  • Macro/Industry Trends: Industrial gases market expected to grow at ~7.5% CAGR from 2024 to 2028; growth fueled by chemicals ($270B), steel ($133B), healthcare ($105B), and pharma ($59B) sectors.
  • Impact on Company: Growing end-market demand supports expansion plans; near-term macro pressure on industrial activity may affect short-term growth.

Management Commentary & Growth Outlook

  • Strategic Outlook: Underlying performance in core business has been strong; growth expected to accelerate into FY27 as existing plants scale.
  • FY Guidance: Capex guidance of ₹2,500 million for FY2027; recovery momentum expected to continue into FY27.
  • Market Share Targets: Not Specified
  • Risks and Opportunities: Near-term pressure from broader macro environment on industrial activity; recovery momentum in argon prices and industrial activity.