Strong growth hinges on price realization; margin recovery contingent

Delivered 22.6% YoY growth; regional breakdown 28% India, 37% NA, 21% Europe, 17% Australia supports regional mix claim

OPM 13.9% delivered; PAT margin 9.5% vs prior 9.7% (stable); EBITDA growth not directly verifiable but consistent with maintained margin

Delivered 9.5% NPM; claim of ~9.7% prior year approximately correct

Claim made but not verified from earnings call or delivered results

Management forward-looking; Q1 did not yet show full benefit despite 5% material cost inflation

Launched Sep 2025, absorption described as outstanding; India growth supports but not independently verified from numbers

Launched Sep 2025, already contributing meaningfully to India 28% growth; rolling out globally this year vs earlier tentative plans

First orders received, formal launch September 2026 vs prior scoping; expected strong player over next few years

Australia 'muted' (17% growth vs broader 28%), Europe 'P&L play' (breaking even), Southeast Asia 'longer-term play'; distribution in NA underperforming

Management clarified global at 15-16% parts vs 28-30% India; benchmark is 35-40%, opportunity to grow 1000+ bps over time

Growth primarily volume-driven. Anticipated 3% material cost increase, took 3% price correction. Actual cost was 5-6%, so under-recovered; corrected in subsequent quarters; impact not yet seen in Q1.

Outstanding absorption since Sep 2025 launch. Technology embedded in multiple product models, phased introduction. Wherever introduced, 100% acceptance. Launching globally this year; validation machines in all major geographies with outstanding feedback.

80% of market buys on energy efficiency + maintenance cost (not price); 20% buys on price only. ELGI focuses on 80%. 70% of industrial models best-in-world for efficiency (independently published). Lowest defect rates, warranty cost 1%). Demand=Match differentiates further.

Aftermarket grown globally and in India. Global: 20-23% parts. India: 28-30% parts. US: ~30% mix of parts and service (service charges $100s/hour, lumpy). Global benchmark 35-40%, ~38% target. Headroom to grow in both markets.

No technology gap. Demand=Match proves mastery of know-how AND know-why. Been working 30 years. Technically no difference; in some areas, superior understanding. Evidence is ability to question existing and build next generation.

Won't split piston/screw (too competitively sensitive). Infra/industrial/retail breakdown not measured separately. Don't track automotive garage sales separately.

Operating leverage linked to new products (top-line growth). Gross margin improvement via ongoing cost reduction and re-engineering. Fixed cost rationalization through process exercise. Three-level approach: leverage + gross margin + overhead efficiency.

Current tariff 25%, absorbed effectively. Refund status: ~₹4M approved, actual receipt ~₹1.6-1.8M so far. Balance pending. Commodity cost (5% hit, potential 9%) being managed through cost reduction and pricing.

Delivered +22.6% YoY revenue growth; meets prior guidance. Tier 4 launch Sep 2026 will add marginal topline this year, scale in future years. Demand=Match global rollout expected to add 1-2% tailwind this year.

Q1 maintained 13.9% OPM vs prior year; price increases not yet fully realized despite 5% material cost hit. Confidence contingent on price realization without demand destruction.

Multi-year horizon. Mechanisms in place: Demand=Match, tier 4, in-house motor insourcing, process layer building. Execution on organizational scaling critical. Currently 13.9%, need 400+ bps expansion.

MK2 is multi-year shift from city factory to new campus. Italian land committed 6 years ago. Normal CAPEX for equipment ongoing. No specific FY27 CAPEX number disclosed.

Q1 did not see full benefit of price corrections despite 5% material cost inflation. MD stated corrections expected 'end Q2 and more fully Q3.' Realization contingent on demand elasticity and competitive response.

Australia muted (17% vs broader 28%); Southeast Asia faces challenges as Indian brand; Europe breaking even; NA distribution weak. Restructuring timelines uncertain.

MD admitted organizational capability gap vs global peers. Need to build strong process layer over next 3-4 years for next round of scale. Execution risk on this transformation.

Current tariff 25%, absorbed; but Trump administration could escalate. Commodity cost at 5% inflation, could reach 9%. These externalities are outside ELGI's control.

Getting distributors to come on board takes long time; not as easy as converting a customer. NA growth has relied on new distributor access, but distribution business underperforming on service side.