Ellenbarrie Industrial Gases Q2 Revenue Jumps 28% to 1,143 Million

Revenue grew to 1,143 million in Q2 FY27, while the company secured a significant 480 crore BHEL contract.

Reader Takeaway: Strong revenue growth driven by new capacity is balanced against temporary margin pressure from higher operating costs.

What just happened

Ellenbarrie Industrial Gases posted a solid performance for the quarter ended September 2026. Revenue grew 28% year-on-year to 1,143 million. Consolidated EBITDA reached 407 million, reflecting a 36% margin. A key highlight was the securing of a 480 crore EPC contract from BHEL to build a 1,200 TPD cryogenic air separation unit in Odisha, which will be executed over the next eight quarters.

Why this matters

The company is scaling its operational footprint. The successful commissioning of the 325 TPD Durgapur plant demonstrates the company’s ability to bring new capacity online. While the BHEL contract carries lower margins than the core gas supply business, it provides immediate cash flow and strengthens the company's competitive standing for future infrastructure bids.

The backstory

The core gases business remains robust, with segmental margins holding at approximately 39%. The slight dip in consolidated margins to 36% from 39% sequentially is attributed to one-time employee arrears, project team expansion, and higher transportation costs linked to fuel prices. Management noted that freight costs are expected to normalize as they are passed through to customers with a typical two-month lag.

Risks to watch

Investors should monitor the timeline for two merchant plants in North and Central India, which have been delayed to H2 FY28 due to land and approval hurdles. Additionally, the shift toward EPC-based revenue may continue to affect consolidated margin visibility compared to the long-term on-site gas model.

Context metrics (time-bound)

• H1 FY27 Revenue: 2,130 million (23% growth over H1 FY26).
• Argon gas contribution: Increased to 14-16% of the mix, supporting overall realizations.

What to track next

Watch the utilization ramp-up of the new Durgapur plant and progress updates on the BHEL project. The company’s ability to maintain its 20% annual revenue growth guidance amidst project delays will be a key performance indicator.