Elgi Equipments (ELEQ IN) – Analyst Meet Update – Domestic strength and export market share gains – Accumulate
Published on 27 Feb 2026
We attended Elgi Equipments’ (ELEQ) analyst meet, where management highlighted business performance, product innovation, and its medium-term strategic roadmap. The ISAAME region is expected to remain the key growth engine, supported by strong traction in the Middle East and a recovery in investment activity following tariff normalization. In North America, performance was weighed down by the structurally lower-margin portable segment and prior tariff impacts; however, underlying initiatives remain intact. Europe has achieved break-even following cost rationalization, with future growth anchored in market share gains across core markets. In Australia, share gains have partially mitigated broader market weakness. Rising traction for Demand=Match and a robust pipeline of new product launches position the company well to achieve its USD750mn revenue target with ~18% EBITDA margin by FY31, reinforcing a constructive long-term outlook. The stock is currently trading at a PE of 36.0x/31.4x on FY27/28E earnings. We roll forward to Mar’28E and maintain our ‘Accumulate’ rating valuing the stock at a PE of 35x Mar’28E (35x Sep’27E) arriving at a revised TP of Rs603 (Rs565 earlier).
