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Elgi Aims to be Top 3 Air Compressor Manufacturers Driven by Broad-Based Growth
Its consolidated revenue from operations for the March quarter was up 14.7 per cent to INR 993 crore as against INR 866 crore in the corresponding quarter of the previous year.
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Elgi Equipments aims to be among the top three global air compressor manufacturers by revenue driven by broad-based growth in its key markets. Currently, it is the sixth largest air compressor supplier globally.
"India and Europe were very strong, Australia and North America was kind of flat, but Middle East, Africa, India all of them did well. So, that's the top line story. Bottom line was by and large consistent with the top line growth," said Jairam Varadaraj, Managing Director, Elgi.
With an estimated market share of around 20 per cent, Coimbatore-based Elgi Equipments is the second largest manufacturer of compressors in India. Its product profile includes portable, reciprocating and screw compressors, sold under the Elgi brand, through channel partners.
"We have been for a long period of time in India…we have on average five times more machines installed than in the rest of the world. So, as a consequence, our aftermarket revenue is close to 27-28 per cent of our total revenue, whereas when you take globally, it is only about 12-13 per cent. So, the global markets are in the nascent stage of growing the aftermarket, but once the installed base gets established in these markets, then profitability will follow," said Varadaraj. "So, overall, I think we are on the right track, growing well."
Elgi Foundry
In a significant leap forward for industrial air compression, earlier this year, Elgi Equipments announced the introduction of its pioneering compressed air stabilization technology, aimed at addressing the challenges of unstable compressor performance, inefficiency, and excessive wear caused by frequent load/unload cycles.
In industrial settings, the gap between compressor capacity and plant air demand is inherently dynamic. This variability leads to frequent cut-in and cut-out operations, which destabilize the compressor and impair critical flow and kinematic components. Traditional solutions, such as increasing reservoir volume, altering cut-in/cut-out pressures, or adding variable frequency drives (VFDs), often fall short, introducing new inefficiencies or higher operational costs.
The global air compressor market size was valued at approximately USD 26.57 billion in 2024 and is projected to reach USD 34.10 billion by 2030, according to a report from Grand View Research. This represents a compound annual growth rate (CAGR) of approximately 4.7 per cent from 2024 to 2030.
Elgi, a publicly listed firm, reported a net profit of INR 102 crore for the fourth quarter ended March, up 34.2 per cent compared to INR 76 crore in the same quarter last year. Consolidated revenue from operations for the March quarter was up 14.7 per cent to INR 993 crore as against INR 866 crore in the corresponding quarter of the previous year.
For the full fiscal year, consolidated PAT was down 12.2 per cent to INR 350 crore compared to INR 312 crore in FY24 due to a one-time expense. For the full year, the company's revenue grew 9 per cent to INR 3,510 crore as against INR 3,218 crore in the previous year.
"India and Middle East continue to drive sustainable growth. The European and Brazilian business continued the growth momentum. The Australian business saw a return to growth, while the South East Asia remained subdued. The industrials and medical businesses performed well in USA. The automotive business continues to grow, aided by growing domestic demand and through forging strategic partnerships," the company said in a statement during the earnings.
On the impact of the US reciprocal tariffs, Elgi said it has "devised certain mitigation measures to overcome the impact of US tariffs, which is expected to be minimized further once a trade agreement is signed at a country-to-country level."
