Ellenbarrie Industrial Gases Q2 Revenue Rises 28% to ₹114.3 Crore

Ellenbarrie Industrial Gases Ltd reported Q2 FY27 revenue of ₹114.3 crore, up 28.1% year on year, while securing a ₹480.7 crore turnkey air separation unit order from Bharat Heavy Electricals Limited. The quarter showed continued sales growth, although higher power and transport costs and a lower argon price affected margins and year-on-year profit comparison.

What did Ellenbarrie Industrial Gases report for Q2 FY27?

Ellenbarrie Industrial Gases reported revenue of ₹114.32 crore for the quarter ended September 30, 2026, compared with ₹89.17 crore in the corresponding quarter a year earlier. Revenue grew 28.2% year on year and 15.8% sequentially, reflecting the ramp-up in gases volumes.

EBITDA rose 20.8% year on year to ₹40.7 crore. The reported EBITDA margin was 35.6%, which was 220 basis points below the year-earlier level. The company said the margin was affected by higher power and transport costs during the quarter.

Profit after tax stood at ₹35.65 crore, down 2.9% year on year but up 3.7% sequentially. The year-ago quarter had included a ₹4.5 crore deferred-tax credit, which affected the year-on-year comparison. The board approved the unaudited Q2 and half-year results on November 4, 2026, and the auditors issued an unmodified limited-review conclusion.

How did the quarter's financial metrics compare?

The quarter delivered stronger revenue and EBITDA in absolute terms, but profit growth did not match revenue growth because of the tax comparison and cost pressures. Ellenbarrie Industrial Gases also faced a weaker argon pricing environment, with its earnings-call summary referring to a 25% fall in argon prices and softness in the steel sector.

The quarterly figures indicate that sales growth was supported by the expansion in gases volumes rather than by a broad increase in argon prices. In its earlier April-June 2026 earnings call, management had said that EBITDA-margin growth in that period had not primarily been driven by argon pricing.

Why did Ellenbarrie Industrial Gases' profit decline year on year?

Ellenbarrie Industrial Gases' profit after tax declined despite higher revenue and EBITDA because the comparison base included a ₹4.5 crore deferred-tax credit in Q2 FY26. This prior-period tax item means the reported year-on-year PAT movement should not be read solely as an operating-performance measure.

Operating profitability also came under pressure from higher power and transport costs. The company’s earnings-call material cited a 25% decline in argon prices and steel-sector softness as sequential headwinds. These factors were associated with margin contraction, even as the company increased revenue and EBITDA from a year earlier.

The reported 35.6% EBITDA margin remained below the prior-year level, showing that cost and pricing conditions limited the conversion of revenue growth into operating-margin expansion. No exceptional items were reported in the Q2 FY27 results.

What does the BHEL order mean for Ellenbarrie Industrial Gases?

Ellenbarrie Industrial Gases secured a ₹480.7 crore turnkey air separation unit, or ASU, order from Bharat Heavy Electricals Limited. The order was highlighted in the company’s Q2 FY27 investor presentation alongside the quarterly financial results.

An ASU produces industrial gases, making such projects relevant to Ellenbarrie Industrial Gases' onsite supply and capacity-expansion activities. The company did not disclose an execution schedule, revenue-recognition timeline, or financial contribution from the BHEL order in the material provided.

The order value is substantially larger than the company’s Q2 revenue, but order value and quarterly revenue are not directly comparable. The project’s financial effect will depend on its progress and the timing of execution, details that were not included in the stated results release.

What capacity plans has management disclosed?

Ellenbarrie Industrial Gases had previously guided for capital expenditure of ₹250 crore in FY27 and ₹200 crore in FY28 during its August 10, 2026 earnings call. Management had also said that an East India onsite plant with 320 tonnes per day capacity was expected to record its first revenue during July-September 2026.

The company had outlined planned North and West-Central merchant plants with combined capacity of about 450-500 tonnes per day, although it did not provide commissioning dates. Management said merchant plants could reach an 80-90% utilisation range over 18-24 months, with construction taking about 18 months and payback estimated at around three years after stable operations.

Management had indicated that operating margin could stabilise at 40% or higher as capacity expansion progressed. This was a management objective rather than a reported result. Q2 FY27 EBITDA margin of 35.6% was below that indicated level.

What information is available from the earnings call?

Ellenbarrie Industrial Gases held its Q2 and H1 FY27 earnings conference call on November 5, 2026, following the November 4 results announcement. The company subsequently made the audio recording available on its website under the applicable SEBI Listing Obligations and Disclosure Requirements framework.

The recording release was a procedural disclosure and did not contain new financial results or forward-looking statements in the filing notice. Investors can use the call materials to assess management's commentary on volumes, pricing, costs, capacity projects and the BHEL order against the reported Q2 figures.

Conclusion

Ellenbarrie Industrial Gases delivered 28.2% year-on-year revenue growth in Q2 FY27 and increased EBITDA by 20.8%, while its PAT declined because of a deferred-tax credit in the prior-year base and margin conditions remained under pressure. The ₹480.7 crore BHEL ASU order adds a significant disclosed project to the company's order activity, although its delivery schedule and revenue timing were not stated.

The next points to watch are progress in the company's FY27 capital-spending programme, the operational contribution from the East India onsite plant, and further commentary on argon pricing, power and transport costs. Investors will also monitor disclosures on execution of the BHEL order and the planned merchant-plant capacity additions.