Motilal Oswal's research report on Ellenbarrie Industrial Gases
Ellenbarrie (ELLEN) delivered a weak performance in 3QFY26 as its EBITDA declined 8% YoY to INR249m. The dip was mainly due to the price declines of key industrial gases – argon, oxygen, and nitrogen – led by muted demand in the steel industry. We expect the growth momentum to accelerate, driven by the ramp-up of the Uluberia-II (220 TPD) facility and the commissioning of the East India Onsite Plant (320 TPD) in 1QFY27. It will also be supported by margin
expansion as the company intensifies its focus on power-cost optimization.
Outlook
We build in a CAGR of 29%/34%/36% in revenue/EBITDA/adj. PAT over FY25 28E. We maintain our FY26 earnings estimates and reduce our FY27/FY28 earnings estimates by 8%/9% due to slower than expected recovery in prices of key industrial gases and the weak operating performance in 3QFY26, and reiterate our BUY rating with a TP of INR350 (based on 27Sep’27E EPS).
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Ellenbarrie Industrial Gases_04022026_Motilal Oswal