Chennai: Global air compressor manufacturer Elgi Equipments has unveiled a new five-year strategic business plan targeting consolidated revenue of Rs 6,615 crore by FY31, up from Rs 3,951 crore in FY26, implying an annual growth rate of about 11%—more than three times the expected expansion of the global air compressor market.The Coimbatore-based maker of industrial air compressors also aims to increase its EBITDA margin to 18% while sustaining a return on capital employed (RoCE) of 35% by FY31, according to its latest annual report.The targets follow a year of strong execution despite global headwinds. Consolidated revenue rose 13% in FY26, helped by improved performance across key geographies, expansion of its distribution network, and rising demand for energy-efficient compressed-air solutions. Consolidated net profit increased 23% to Rs 430 crore.The revenue split between India and international markets is 51:49, with the US accounting for the largest share of its overseas business.Elgi believes it has built the operational muscle to continue growing both revenue and market share. The company, which describes itself as the world’s sixth-largest industrial air compressor manufacturer, said it has grown at around 11% annually in recent years and believes a similar pace over the next five years is achievable. It is targeting the No. 1 position in India and a place among the world’s top three air compressor manufacturers by 2031.“We undertook some reorganisation and reorientation, and almost all our business verticals are now beginning to perform well,” managing director Jairam Varadaraj said during the company’s earnings call. The company is continuing to reshape its organisation and refine its go-to-market strategy to sustain growth, he added.The company’s manufacturing capabilities remain central to its strategy. Operating in more than 120 countries, with a direct presence in 28 and manufacturing facilities across three locations, Elgi has spent more than two decades investing in backward integration—from foundries and motor production to pressure vessels, machining and in-house machine building. The Deming Prize winner sees these capabilities as a competitive advantage, although research and development spending eased to 1.6% of revenue in FY26 from 1.9% a year earlier.The global air-compressor market, valued at around $23 billion in 2025, is projected to reach $27 billion by 2030, expanding at a CAGR of roughly 3.5%. Elgi is focusing on delivering energy-efficient, technologically advanced compressor solutions to capture emerging opportunities across its served markets.
