Elgi Equipments shares demonstrated strong market performance today, opening at ₹614.00 and reaching a high of ₹626.55 during intraday trading. The stock showed positive momentum with a previous close of ₹609.50 and low of ₹603.20, resulting in an average traded price of ₹619.81. Technical indicators suggest the stock is currently in an uptrend with the 50 DMA at ₹590.57 and 200 DMA at ₹523.58. The strong price action reflects positive investor sentiment following the company's robust Q1FY27 results and continued growth prospects.
Prabhudas Lilladher has issued an 'Accumulate' rating on Elgi Equipments with a target price of ₹638 in its research report dated August 15, 2026. According to the brokerage's analysis, the stock is currently trading at a PE of 39.0x/33.4x on FY27E/28E, with the target price based on a PE of 35x Mar'28E. The recommendation reflects the company's strong operational performance and growth prospects across domestic and international markets, with the current share price performance supporting the positive outlook.
Elgi Equipments delivered a robust Q1FY27 performance with revenue growth of ~23% YoY and EBITDA margin improvement of 65bps YoY. As reported by Prabhudas Lilladher, the growth was supported by broad-based expansion across India and key international markets. India revenue grew ~28%, driven by healthy traction in industrials, aftermarket, EV, renewables and semiconductor ecosystem segments. North America and Europe grew ~37% and ~21% respectively, demonstrating strong international momentum that continues to drive investor confidence in the company's growth trajectory.
The aftermarket segment continued to be a key margin-supporting lever, contributing ~30% of India revenue and ~15-16% of US operations. According to Prabhudas Lilladher's analysis, Demand Match continued to gain strong customer acceptance, enabling market-share gains in India and supporting the planned global rollout over FY27. New growth avenues including Tier-4 compressors, vacuum solutions and semiconductor applications are progressing well, while the company strengthens its product portfolio through higher efficiency and lifecycle-cost optimization. The strong aftermarket performance and expanding product portfolio are key factors supporting the company's growth momentum.
Despite facing raw material inflation and a 25% US tariff, the company expects cost-reduction initiatives and price corrections to support further margin improvement from Q2/Q3. As reported by Prabhudas Lilladher, international operations are being streamlined through restructuring and cost rationalization, supporting the company's longer-term ambition of reaching ~18% EBITDA margin by FY31. The brokerage highlighted that strong domestic demand, improving international performance, Demand Match adoption and expanding aftermarket provide a healthy growth runway for the company, with the current share price performance reflecting positive market sentiment towards these strategic initiatives.
According to Prabhudas Lilladher's outlook, execution in Australia/SEA and tariff developments remain key monitorable factors for the company's performance. The brokerage emphasized that strong domestic demand, improving international performance, Demand Match adoption and expanding aftermarket provide a healthy growth runway, positioning the company well for sustained growth in the coming quarters. With the current share price performance and positive technical indicators, these factors are increasingly important for maintaining the company's growth trajectory and achieving its margin improvement targets.
