Ellenbarrie Industrial Gases Reports FY26 Profit of 1,044 Million INR

Ellenbarrie Industrial Gases achieved a Profit After Tax (PAT) of 1,044 million INR for the financial year ended March 2026. The company reported revenue of 3,416 million INR and EBITDA of 1,166 million INR for the same period.

Key Takeaways

• Core gases segment grew 14.2% year-over-year.
• Profit after tax reached 1,044 million INR for the full year.
• Expansion plans include significant capital expenditure for new plants.
• Low Net Debt/Equity ratio of 0.03.
• Risks include Argon price volatility and macroeconomic pressures.

Financial Performance

Ellenbarrie Industrial Gases announced its financial results for the fourth quarter and full year of FY26. The company posted Q4 FY26 revenue of 874 million INR, with Q4 PAT at 229 million INR. For the full fiscal year FY26, revenue stood at 3,416 million INR, EBITDA at 1,166 million INR, and PAT at 1,044 million INR.

The company’s core gases business showed strong performance, recording 14.2% year-over-year revenue growth in FY26. This growth occurred despite a strategic decision to reduce revenue from non-core project engineering, which saw a 62% decline as the company focused on its own new plant construction.

While overall EBITDA was affected by temporary factors and lower Argon prices in the second half of the fiscal year, the core gases segment maintained solid profitability. Segment margins were 40.0% in Q4 FY26 and 38.4% for the full year.

The company also highlighted its strong financial position, maintaining a Net Debt/Equity ratio of just 0.03.

Strategic Focus and Expansion

These results underscore the company's successful focus on its core business operations and its commitment to expansion. The strong performance in the core gases segment, combined with healthy margins, indicates resilience. Furthermore, the planned capital expenditure for new plants signals a proactive approach to scaling operations and capturing future market demand. The low debt level provides financial flexibility for these expansion initiatives.

Ellenbarrie Industrial Gases has been strategically shifting its focus. The reduction in non-core revenue is a deliberate move to concentrate resources on building its own manufacturing capacity. This strategy aims to secure long-term growth and operational control.

Future Investments and Energy Strategy

Significant capital expenditure is planned for FY27 (INR 2,500 million) and FY28 (INR 2,000 million) to establish new plants in East, North, and West/Central India. A new on-site plant in East India is scheduled to become operational next month, with revenue expected from the second half of FY27.

To manage long-term energy costs, the company has entered a 25-year Power Purchase Agreement (PPA) for a wind-solar hybrid plant, acquiring a 26% stake for INR 70.8 million.

Potential Risks

Investors should monitor Argon price volatility, as prices in the latter half of FY26 were lower than the first half, impacting profitability. The broader macroeconomic environment also presents near-term pressure on industrial activity, which could affect demand.

Key Metrics

• FY26 Revenue: 3,416 million INR
• FY26 PAT: 1,044 million INR
• Q4 FY26 PAT: 229 million INR
• Core Gases segment growth FY26: 14.2%
• FY26 Core Gases segment margin: 38.4%
• Net Debt/Equity ratio: 0.03
• FY27 Planned Capex: INR 2,500 million
• FY28 Planned Capex: INR 2,000 million

Next Steps

Key developments to watch include the operational commencement of the new East India plant, the subsequent revenue ramp-up from new facilities starting in H2FY27, and the financial impact of the new wind-solar PPA on operational costs from FY27 onwards.