Ellenbarrie margin rebounds 7.04 points as costs stay contained
Revenue rose 12.91% qoq as expenses grew 1.36%, but other income still supplied 36.72% of pre-tax profit.
Filed 07 Aug 2026, 18:38 IST · after market close · Ellenbarrie Industrial Gases Ltd (ELLEN)
Key takeaways
- Standalone operating margin recovered 7.04 percentage points sequentially as revenue grew 12.91% while expenses rose only 1.36%.
- Net profit increased 52.80% sequentially, helped by a 6.51 percentage-point decline in the tax rate, while other income contributed 36.72% of pre-tax profit.
- Ellenbarrie's 38.12% operating margin was 19.71 percentage points above the median of 62 reported commodities-sector peers.
Price around the results
Q1FY27 reverses the Q4FY26 margin dip
Ellenbarrie's standalone operating margin rose to 38.12% from 31.08% in Q4FY26, reversing the decline seen from 37.54% in Q2FY26. Revenue grew 12.91% sequentially, while expenses increased just 1.36%, allowing operating profit to grow 38.45%. The quarter therefore shows a clear recovery after the Q4FY26 slowdown, rather than a continuation of the prior margin direction.
Lower tax and other income lifted reported profit
Net profit rose 52.80% sequentially as the tax rate fell 6.51 percentage points and interest expense declined 16.31%. Other income accounted for 36.72% of pre-tax profit, so the reported profit increase was not driven by operating profit alone. The lower tax rate also flattered the conversion of pre-tax profit into net profit.
Stable gas prices and lower employee costs supported margins
Management said oxygen and nitrogen prices remained stable during the quarter, while employee costs declined sequentially after one-off costs in the previous quarter. The company said NMDC Steel awarded it a work order to operate and maintain two 1,250 TPD air-separation plants at Nagarnar. Management also said the Kurnool and Uluberia 2 merchant plants are expected to be key growth drivers in FY27, and that renewable-energy savings are expected to support margin expansion.
Margin is well above the reported peer median
Ellenbarrie's standalone operating margin of 38.12% was 19.71 percentage points above the 18.41% median for 62 commodities-sector peers that had reported the same quarter. Management said it plans to establish merchant plants in North and West/Central India over the next few years despite macroeconomic volatility.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹99 cr | ₹87 cr | +12.91% |
| Other income | ₹17 cr | ₹15 cr | +17.33% |
| Expenses | ₹61 cr | ₹60 cr | +1.36% |
| Operating profit | ₹38 cr | ₹27 cr | +38.45% |
| Operating margin (%) | 38.12% | 31.08% | — |
| Interest | ₹2 cr | ₹2 cr | -16.31% |
| Depreciation | ₹6 cr | ₹6 cr | +2.95% |
| Profit before tax | ₹46 cr | ₹33 cr | +39.60% |
| Tax | ₹12 cr | ₹10 cr | +10.58% |
| Net profit | ₹35 cr | ₹23 cr | +52.80% |
| EPS (₹) | ₹2.48 | ₹1.62 | +53.09% |
Operating margin of 38.12% compares with a Commodities sector median of 18.41% across 62 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Oxygen and nitrogen prices remained stable during the quarter.
- Employee costs declined sequentially after prior-quarter one-offs.
Guidance & outlook
- The Kurnool and Uluberia 2 merchant plants are expected to be key growth drivers in FY27.
- Renewable energy savings are expected to support margin expansion.
Expansion
- The company plans to establish new merchant plants in North and West/Central India over the next few years.
New orders
- NMDC Steel awarded a work order for operating and maintaining two 1,250 TPD ASU plants at Nagarnar.
Problems & risks
- The company plans new merchant plants despite macroeconomic volatility.
What to watch
- Whether standalone operating margin holds above 38.12% next quarter.
- Whether other income's 36.72% share of pre-tax profit moderates.
- Whether expenses remain below revenue growth after rising 1.36% versus 12.91% revenue growth.