Elgi Equipments (ELEQ IN) – Q4FY26 Result Update – Healthy Q4, Europe revival on cards – ACCUMULATE
Published on 01 Jun 2026
ELGI continues to strengthen its competitive positioning through increasing backward integration, with over 95% of motor requirements now sourced in-house, supporting cost efficiency and product innovation. Additionally, ongoing investments in GTM capabilities, inventory optimization, digital infrastructure and new product development are expected to support market-share gains and gradual margin improvement over the medium term, while commodity inflation and geopolitical developments remain key near-term monitorable. The stock is currently trading at a PE of 36.9x/31.5x on FY27/28E. We roll forward to Mar’28E and maintain our ‘Accumulate’ rating on the stock valuing it at a PE of 35x Mar’28E (35x Sep’27E earlier) arriving at a TP of Rs637 (Rs565 earlier).
