Ellenbarrie Industrial Gases Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Ellenbarrie Industrial Gases Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Ellenbarrie Industrial Gases reported Q1 FY27 revenue of Rs 987 million, up 18% year-on-year and 13% sequentially, driven by ramp-up at the Kurnool and Uluberia 2 plants. EBITDA grew 21% year-on-year to Rs 387 million with margin at 39%, while profit after tax rose 87% year-on-year to Rs 350 million aided by lower finance costs and a lower effective tax rate. Management discussed capacity expansion plans in North India and West Central India, argon pricing trends, and the commissioning of a new East India on-site plant expected to contribute revenue from Q2 FY27.
Numbers mentioned
Revenue from operations: 987 million (Q1 FY27)
p. 4
“Revenue from operations stood at 987 million compared to 836 million in Q1 of FY26 and 874 million in Q4 of FY26.”
Varun Agarwal, page 4 of the filed PDF · View the filing
Revenue growth year-on-year: 18% (Q1 FY27)
p. 4
“This represents a growth of 18% on a year-on-year basis and 13% sequentially.”
Varun Agarwal, page 4 of the filed PDF · View the filing
EBITDA: 387 million (Q1 FY27)
p. 5
“EBITDA stood at 387 million compared to 318 million in Q1 of FY26 and 258 million in Q4 of FY26.”
Varun Agarwal, page 5 of the filed PDF · View the filing
EBITDA margin: 39% (Q1 FY27)
p. 5
“On the margin front, the EBITDA margin stood at 39% compared to 38% in Q1 of FY26 and 30% in Q4 of FY26.”
Varun Agarwal, page 5 of the filed PDF · View the filing
Profit after tax: 350 million (Q1 FY27)
p. 5
“Profit after tax stood at 350 million compared to 187 million in Q1 of FY26 and 229 million in Q4 of FY26.”
Varun Agarwal, page 5 of the filed PDF · View the filing
PAT growth year-on-year: 87% (Q1 FY27)
p. 5
“This represents a growth of 87% on a year-on-year basis and 53% sequentially.”
Varun Agarwal, page 5 of the filed PDF · View the filing
Gases segment revenue: 973 million (Q1 FY27)
p. 5
“Coming to the core gases business, the revenue from gases and related products and services stood at 973 million in Q1 of FY27.”
Varun Agarwal, page 5 of the filed PDF · View the filing
Core gases segment margin: 38% (Q1 FY27)
p. 5
“Segment margin in the core gases business stood at 38% for this quarter.”
Varun Agarwal, page 5 of the filed PDF · View the filing
East India on-site plant capacity: 320 tons per day
p. 5
“This plant has a capacity of 320 tons per day and is expected to contribute revenue from Q2 of FY27.”
Varun Agarwal, page 5 of the filed PDF · View the filing
On-site revenue: 14 crores (Q1 FY27)
p. 14
“Currently, I think on-site versus bulk, if you look at our latest investor presentation in Q1, you know, onsite was about 14 crores and bulk was 70 crores, which is about, onsite being about 20% in terms of revenue.”
Varun Agarwal, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
FY27 capex — 2,500 million or 250 crores · FY27
stated firmly by Varun Agarwal
p. 6
“Our capex guidance remains at 2,500 million or 250 crores for FY27 and 2,000 million or 200 crores for FY28.”
Varun Agarwal, page 6 of the filed PDF · View the filing
FY28 capex — 2,000 million or 200 crores · FY28
stated firmly by Varun Agarwal
p. 6
“Our capex guidance remains at 2,500 million or 250 crores for FY27 and 2,000 million or 200 crores for FY28.”
Varun Agarwal, page 6 of the filed PDF · View the filing
EBITDA margin — 40% or higher
stated as an aspiration by Varun Agarwal
p. 8
“we expect this business to stabilize at 40% or higher EBITDA margins”
Varun Agarwal, page 8 of the filed PDF · View the filing
East India plant revenue contribution — Q2 FY27
stated firmly by Varun Agarwal
p. 15
“we expect the revenues to come in in Q2, which is the current quarter”
Varun Agarwal, page 15 of the filed PDF · View the filing
North India and West Central India merchant capacity — 450 to 500 tons per day cumulatively
stated firmly by Varun Agarwal
p. 9
“No, we have started the construction, and these plants would together be of approximately 450 to 500 tons per day cumulatively across the two plants.”
Varun Agarwal, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Merchant plants are not backed by advance contracts; the company assesses the micro market first and business building starts closer to commissioning.
Answered by Varun Agarwal
Asked by Vatsal Bhandari: Is the new North India plant backed by contracted demand before commissioning?
p. 7
“So, to answer your question in a nutshell, there are no contracts which are tied up in advance, but we have a sense of our target customers in that region.”
Varun Agarwal, page 7 of the filed PDF · View the filing
Management reiterated an expectation of margins stabilizing at 40% or higher as capacity expansion unfolds.
Answered by Varun Agarwal
Asked by Vatsal Bhandari: Is 38-39% EBITDA margin a fair guidance going forward?
p. 8
“we have in the past also mentioned that, you know, we expect this business to stabilize at 40% or higher EBITDA margins”
Varun Agarwal, page 8 of the filed PDF · View the filing
Management said the margin improvement was mainly from operational efficiency of new capacity and cost control, not argon pricing.
Answered by Varun Agarwal
Asked by Bhavika Singhvi: How can the company sustain 40% EBITDA margin if it's currently being driven by argon pricing?
p. 9
“The growth in our EBITDA margins, however, has not been primarily on account of Argon pricing.”
Varun Agarwal, page 9 of the filed PDF · View the filing
The capex is for two merchant plants in North India and West Central India, since the East India plant is already operational.
Answered by Varun Agarwal
Asked by Bhavika Singhvi: Which capacities will the announced Rs 450 crore capex fund?
p. 9
“So this amount is towards 2 merchant plants, one in North India and one in sort of West Central India.”
Varun Agarwal, page 9 of the filed PDF · View the filing
Legacy plants are fully utilized, with spare capacity mainly in the recently commissioned plant.
Answered by Varun Agarwal
Asked by Bhavika Singhvi: What is current utilization across bulk and on-site plants?
p. 10
“So currently, our legacy plants are fully utilized. The recently commissioned plant, which was commissioned in Q4 of the last financial year, there we have some spare capacity available.”
Varun Agarwal, page 10 of the filed PDF · View the filing
Prices have recovered since Q3 FY26 lows but remain below H1 FY26 levels, with a positive long-term trend.
Answered by Varun Agarwal
Asked by Jay Pawar: How have argon prices moved since the low point in Q2/Q3 FY26?
p. 11
“But the prices as they stand today are still lower than the first half of FY26.”
Varun Agarwal, page 11 of the filed PDF · View the filing
Roughly 18 months to build, 18-24 months to ramp up, followed by about a three-year payback.
Answered by Varun Agarwal
Asked by Vatsal Bhandari: What is the payback period for a merchant ASU plant?
p. 13
“I think the way to see it is, we take about 18 months to build out the plant, and then about 18 to 24 months to ramp up the plant. And then, post that, probably kind of a three-year payback.”
Varun Agarwal, page 13 of the filed PDF · View the filing
Management said it aims for balanced growth across both categories rather than favoring one.
Answered by Varun Agarwal
Asked by Arpit Jain: What is the targeted long-term revenue split between on-site and bulk capacity?
p. 14
“we want balanced growth across both these categories”
Varun Agarwal, page 14 of the filed PDF · View the filing
Management confirmed multiple inquiries above 600 TPD are being pursued, though such large plants would be on-site and customer-driven.
Answered by Varun Agarwal
Asked by Arpit Jain: Are there plans for capacity plants above 1000 TPD?
p. 14
“I can tell you that we are actively working on inquiries, which are above 600 tons, multiple inquiries, which are above 600 tons per day capacity.”
Varun Agarwal, page 14 of the filed PDF · View the filing
Steel accounts for about one-third of revenue and the largest single share of inquiries, with the rest split across other industries.
Answered by Varun Agarwal
Asked by Bhavika Singhvi: What share of inquiries and revenue comes from steel versus other industries?
p. 16
“So steel is only about a third of our revenue. So, it's still, if you look at steel versus non-steel, so steel is one-third and non-steel is two-third.”
Varun Agarwal, page 16 of the filed PDF · View the filing
Risks flagged
Geopolitical uncertainty and input cost, energy price and currency volatility
p. 4
“businesses are still operating in a world of geopolitical uncertainty. Input costs, volatility, energy price movement, currency fluctuations, and uneven demand conditions across end user industries.”
Padam Kumar Agarwala, page 4 of the filed PDF · View the filing
Power cost as a key input variable for the business
p. 4
“For a business like ours, energy costs remain one of the most important variables.”
Padam Kumar Agarwala, page 4 of the filed PDF · View the filing
Argon price volatility affecting quarterly margins
p. 9
“if there is a significant reduction in argon prices, that will impact the margin for that particular quarter”
Varun Agarwal, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.