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Earnings Call Transcript

Ellenbarrie Industrial Gases Earnings Call Transcript: Key Takeaways

Ellenbarrie reported healthy YoY growth but faced sequential headwinds due to a 25% crash in Argon prices and steel sector softness, leading to margin contraction to 31%.

Highlights
Revenue growthHealthy YoY growth; 9% sequential decline due to steel sector softness.
MarginsSequential contraction to 31% from 38% on lower Argon realizations.
Demand visibilitySteel sector remains soft; solar and semiconductor inquiries increasing significantly.
Management confidenceBalanced; acknowledging short-term Argon pricing pressure while maintaining long-term targets.

Growth

Revenue rose YoY to ₹813M; however, sequential operational revenue declined 9%.

Outlook

Capex of ₹2,500M for FY26 and ₹2,000M for FY27 targeting 40% EBITDA margins.

Risks

Argon oversupply from captive steel plants and high client concentration in steel.

Last quarter's promises, checked

Delivered

  • Commission Uluberia 2 plant in Q4 → Delivered (commissioned in Q4 FY26) (= BEAT)
  • Target 38.4% FY26 Gas EBITDA margin → Delivered 38.4% (= BEAT)
  • Core gas revenue growth vs FY25 → Delivered 14.2% growth (= BEAT)

Partly delivered

  • Target 20% revenue CAGR → Delivered healthy YoY growth but 9% sequential decline (= PARTIAL)

Missed

  • Argon pricing recovery → Delivered 25% sequential crash (= MISS)
  • Maintain high margins → Delivered contraction to 31% from 38% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: ELLEN. Summary written with AI assistance from the document.

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Ellenbarrie Industrial Gases Ltd: key numbers

Share price
₹368.50
Market cap
₹5,193 Cr
Revenue (annual)
₹341.6 Cr
Net profit (annual)
₹104.4 Cr
P/E (TTM)
43.0×Sector 53.6×
Promoter holding
77.15%+0.00% QoQ
FII holding
1.08%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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