Ingersoll-Rand (India) (INGR IN) – Q2FY26 Result Update – Muted Q2; capacity commissioning key to growth – Downgrade to ‘Accumulate’
Published on 15 Nov 2025
We revise our FY27E/FY28E EPS estimates by -8.7%/-4.6% and downgrade our rating from ‘BUY’ to “Accumulate’ factoring in deferred revenue due to delay in capacity commercialization. Ingersoll-Rand India (INGR) reported a muted quarter, with revenue flat YoY to Rs3.2bn while EBITDA margin contracted by 104bps YoY to 23.6%. IR new facility at Sanand has been commissioned, with trial production underway and commercial operations expected to begin by CY25; this is expected to support the next leg of growth and strengthen IR’s domestic market leadership. While underlying domestic demand for air compressors remains healthy, elongated decision-making cycles are delaying order finalizations across industry. Additionally, geopolitical and tariff-related uncertainties continue to pose risks to export volumes to the parent, weighing on near-term visibility. The stock is currently trading at a PE of 40.4x/34.9x on FY27/28E. We roll forward to Sep’27E and downgrade our rating from ‘BUY’ to ‘Accumulate’ with a revised TP of Rs4,271 (Rs4,335 earlier) valuing the stock at a PE of 42x Sep’27E (42x Mar’27E earlier). Downgrade to ‘Accumulate’.
