ELGI Equipments Limited said it aims to reach USD 750 million in revenue by the financial year ending March 2031, supported by new product development, increased aftermarket services, and continued expansion of its installed base.
The company said the plan assumes revenue growth of about 11.3 percent over the period, with an expected EBITDA margin of 18 percent and return on capital employed of about 35 percent.
“We believe where we are today and the strong foundation we have and the last several years we have been growing at 11 percent CAGR. For us to grow at 11.3 percent CAGR is quite realistic and therefore USD 750 million is a target that we are setting for FY31,” said Premendra, Chief Strategy Officer of ELGI Equipments.
The company said its previous five-year plan targeted revenue of USD 450 million by FY26 with an EBITDA margin of 16 percent and return on capital employed of 30 percent. It expects to close FY26 with revenue of about USD 440 million at current exchange rates and EBITDA margins of about 15 percent. The compressor manufacturer outlined the target during its Annual Analysts and Investor Meeting held on 26 February 2026.
ELGI reported that its combined business segments are expected to deliver around 11 percent revenue growth in the current financial year. The company said growth was supported by performance in its industrial compressors, medical air systems, and construction and mining segments.
In manufacturing, the company outlined plans for a major facility expansion that includes relocating operations to a new campus. ELGI said it plans to invest about INR 5 billion to INR 6 billion over the next four to five years to shift its current operations from its existing facility to a larger manufacturing site.
“We have already announced that we are going to be spending between INR 500 to 600 crores for moving our current campus to our new campus,” said Jairam Varadaraj, Managing Director of ELGI Equipments.
The company said consolidating operations at a single location is expected to improve manufacturing efficiency and reduce logistics costs currently incurred across multiple production sites.
ELGI also reported progress in its backward integration strategy, particularly in motor manufacturing. The company said imported motors previously accounted for about 75 to 80 percent of its requirements, which declined to 33 percent in 2024 and have now fallen to about 5 percent.
The in-house motor manufacturing capability has expanded to cover power ranges from about 2.2 kilowatts to 160 kilowatts, including permanent magnet motors developed by the company’s internal research and development team.
“We were importing about 75 to 80 percent of our motors. Today that has now dropped down significantly to 5 percent,” said Ramesh Punnuswami, Executive President for Operations.
The company also said it recently commissioned vacuum pump production lines and completed three phases of localisation for rotary vane vacuum pumps. The first stage of the programme is expected to address about 20 percent of the available market opportunity.
In product development, ELGI reported several launches across its compressor portfolio during the past year. These include completion of its EG series super-premium compressor range from 75 kilowatts to 250 kilowatts and expansion of its permanent magnet motor compressor range to 55 kilowatts.
The company also introduced new oil-free air-cooled compressors in the 200 to 250 kilowatt category and developed integrated compressor, tank and dryer packages assembled in India for international markets.
ELGI said it has developed in-house refrigeration dryers covering capacities from 20 cubic feet per minute to 500 cubic feet per minute, replacing previously outsourced products. The dryers are already launched in India, Europe and Australia and are expected to be introduced in the United States in April.
Another technology introduced by the company is its Demand=Match system, designed to improve efficiency in fixed-speed compressors by automatically adjusting airflow to match demand.
“The customer savings has been anywhere between 6 percent to 17 percent,” said Varadaraj, referring to early installations of the system.
ELGI said the Demand=Match system is now standard on compressors sold in India and will be rolled out in Europe, Australia and North America after product validation in those markets.
The company expects aftermarket services and spare parts to play an increasing role in revenue growth as the installed base expands. Aftermarket sales currently contribute about 28 percent of revenue in India and roughly 12 to 15 percent in overseas markets.
“Every time you sell equipment, you have at least a 10-year aftermarket sales number and there is a geometric growth,” Varadaraj said.
ELGI Equipments Limited manufactures air compressors and related equipment used in industrial, construction, mining, and medical applications, supplying products to more than 120 countries. The company operates manufacturing facilities in multiple locations and maintains a direct presence in 28 countries.
