Ingersoll-Rand (India) Ltd, FY2026: Air Compressors, Dividends, and a Multiple the Market Hasn’t Explained
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The company reported FY2026 revenue of ₹1,392 Cr and net profit of ₹256 Cr, with operating margin contracting to 24% from 26% the previous year. Quarterly results show uneven momentum — December 2025 quarter hit ₹455 Cr revenue on strong order conversion, but March quarter fell to ₹300 Cr. The stock trades at 47.6x earnings. Cash sits at ₹160 Cr, debt is near zero. The new plant at Sanand commenced trial production in October 2025.
2. Introduction
Ingersoll Rand India manufactures air compressors — reciprocating, rotary, centrifugal — for domestic and export markets. The company has operated since 1921 and is 75% held by Ingersoll Rand Inc (US parent, rated BBB by S&P). The parent procures global small-compressor volumes from India and offers technological support; exports accounted for ₹250 Cr (18%) in FY2025, trending down from 21% historically.
The sector competes on scale and product mix. Atlas Copco India carries a 63.8x multiple; Elgi Equipments runs at 43x. Kirloskar Pneumatic sits at 38.2x. The compressor market remains exposed to cyclicality in automotive, pharma, and metals demand.
3. Business Model: WTF Do They Even Do?
The company sells air compressors under brands like NASH, CompAir, Ingersoll Rand, Gardner Denver, ARO, Thomas. Revenue breaks down roughly: whole-goods sales (reciprocating, rotary, centrifugal units) dominate at ~92% in recent filings, while spares and services contribute modestly. The firm holds ~50% share in the centrifugal compressor segment locally — a defensible position in industrial machinery.
Customers sit in automotive (still the anchor), metals, pharma, textiles. A single customer, Ingersoll Rand Company USA (the parent), represented ₹250 Cr or 18% of FY2025 revenue; this dependency has inched higher over five years but remains manageable against a ₹1,200+ Cr annual base.
The Sanand plant, commissioned in trial in October 2025 at capex of ~₹170 Cr, targets 5,000 units per month of centrifugal compressors. It was to be operational by year-end FY2026 but delayed until FY2027 start per February 2025 guidance.
4. Financials Overview
Figures are consolidated, in ₹ crore. Result type: Annual. Latest reported: FY2026 (March 2026).
Metric
FY2024
FY2025
FY2026
YoY Change
Revenue
1,198
1,336
1,392
+4.2%
EBITDA
295
358
348
-2.8%
PAT
222
268
256
-4.5%
EPS
70.45
84.74
81.10
-4.3%
FY2026 narrative: Revenue inched 4% higher on improved order intake (Q3 FY2026 spiked to ₹455 Cr), but profit margin compression clawed back gains. Operating margin dropped 200 basis points to 24%, reflecting mix headwinds and input cost volatility. Depreciation held steady at ₹15 Cr; interest expense stayed near zero on a debt-free balance sheet.
The concall (from the filing announcements) flagged that spares and services grew 7% and 26% respectively in FY2025, partially offsetting whole-goods pressure. Management stated no large capex beyond Sanand stabilisation in FY2027.
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
Metric
Current
Historical Average (5Y)
Peer Median
P/E
47.6
46.8
40.6
ROE
43.2%
36.7%
18.2%
ROCE
57.3%
—
23.7%
D/E
0.01
0.01
—
The market currently pays 47.6x earnings here, versus a peer median of 40.6x. The spread exists because the company’s ROE of 43% and ROCE of 57% sit at the top of the peer pack — double the median ROE of 18%. Return on assets clocks 27%, highest in the
