Ingersoll-Rand (India) (INGR IN) – Q3FY26 Result Update – Strong Q3; robust demand across key sectors – Upgrade to ‘BUY’
Published on 13 Feb 2026
We revise our FY27E/FY28E EPS estimates by +7.2%/+7.6% and upgrade our rating from ‘Accumulate’ to ‘Buy’ factoring in stronger execution aided by new facility ramp-up, robust order demand and adoption of new products. Ingersoll-Rand India (INGR) reported a strong quarter, with revenue growth of 19.4% YoY while EBITDA margin contracted by 175bps YoY to 25.1% (against higher base). The commissioning of the Sanand facility has enabled a ~1.5x scale-up in manufacturing output, supported by robust order demand from power, renewables, semiconductors and other key industrial sectors. Order intake remains strong, driven by rising adoption of energy-efficient and contamination-free compressed air solutions, customized offerings for complex applications and strong customer relationships, while the service portfolio continues to gain traction on a growing installed base. Strategically, INGR is prioritizing oil-free low-pressure solutions, scaling contact-cooled rotary technologies for Tier-2 markets, accelerating OEM and rental growth, expanding diversified oil-free platforms and driving AGS localization, with >90% localization of rotary screw compressors targeted over the next year—supporting competitiveness and medium-term margin resilience. The stock is currently trading at a PE of 35.0x/30.1x on FY27/28E. We upgrade our rating from ‘Accumulate’ to ‘BUY’ with a revised TP of Rs4,589 (Rs4,271 earlier) valuing the stock at a PE of 42x Sep’27E (same as earlier). Upgrade to ‘BUY’.
