Ellenbarrie Industrial Gases Limited – Investor Presentation Summary

Key Operational Highlights

  • Total existing bulk capacity is 915 TPD; total onsite capacity is 1,018 TPD (including a plant starting in Q2FY27).
  • The ramp-up at the Kurnool (260 TPD bulk, 340 TPD onsite) and Uluberia 2 (220 TPD bulk) merchant plants is progressing well.
  • A work order awarded by NMDC Steel Limited (NSL) for the operation and maintenance of two 1,250 TPD ASU plants at Nagarnar is excluded from total capacity calculation.
  • Key drivers of operational performance include newer energy-efficient plants, higher production, cost rationalization, and a modest increase in argon prices.

Segment-wise Performance

  • The Core Gases segment revenue increased 20% YoY and 13% QoQ to ₹973 Mn in Q1FY27.
  • The segment result margin for Core Gases was 38% in Q1FY27.
  • Explanation of significant changes: Growth was primarily driven by higher volumes from the ramp-up of merchant plants.

Financial Highlights

Revenue: Rs. 987 Mn

EBITDA: Rs. 387 Mn

PAT: Rs. 350 Mn

EPS: Rs. Not Specified (Basic and Diluted EPS for FY26 was 7.5)

Margins: EBITDA Margin 39%, PAT Margin 30%

YoY/QoQ comparison: Revenue +18% YoY, +13% QoQ; EBITDA +21% YoY, +50% QoQ; PAT +87% YoY, +53% QoQ

Drivers of financial performance: Higher revenue growth from new plants, cost efficiencies, disciplined cost control, lower finance costs (₹20 Mn vs. ₹46 Mn YoY), and a lower effective tax rate.

Key Risks: Macroeconomic volatility, fluctuations in input costs, and intense competition are mentioned in the safe harbour statement.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified (FY26 Borrowings: ₹594 Mn non-current + ₹1,207 Mn current; Total Equity: ₹9,771 Mn)

Reserves: Not Specified (Part of Shareholder's equity of ₹9,771 Mn in FY26)

Current Assets/Liabilities: FY26 Current Assets: ₹2,990 Mn; FY26 Current Liabilities: ₹1,867 Mn

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Not Specified

Capex & Cash Flow Health

Capital Expenditure: Guidance of INR 2500 mn for FY 2027 and INR 2000 mn for FY 2028.

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion with new merchant plants planned in North and West/Central India.

Strategic & R&D Initiatives

Investments in Innovation: Plan to set up new merchant plants in North India (220 TPD, WIP) and Central India (Capacity TBD, WIP). Commissioning a new 320 TPD onsite plant in East India.

Expected impact on growth: The new East India onsite plant is expected to contribute revenue from Q2FY27. The ramp-up of recently commissioned plants is expected to strengthen momentum in H2FY27.

Strategic Rationale: Expanding customer access through added capacities and aligning offerings to evolving market needs.

Industry Trends & Business Environment

Macro/Industry Trends: The Indian industrial gases market is expected to grow at ~7.5% CAGR from 2024 to 2028, backed by end-use industries like Chemicals ($270Bn), Steel ($133Bn), Healthcare ($105Bn), and Pharma ($59Bn).

Impact on Company: The growth in end-use sectors presents opportunities, particularly in Oxygen, Argon, and Nitrogen markets. Steel manufacturers offloading gas production to specialized players is a key trend.

Management Commentary & Growth Outlook

Strategic Outlook: The presentation highlights a growth strategy focused on expanding operational and distribution capabilities.

FY Guidance: Capex guidance of ₹2500 mn for FY27 and ₹2000 mn for FY28.

Market Share Targets: Not Specified

Risks and Opportunities: The safe harbour statement mentions risks regarding fluctuations in earnings, market growth, intense competition, consumption levels, and the ability to manage key customer relationships.