Ellenbarrie posts 9% gas-segment growth, flags argon price recovery
Core EBITDA margin hit 40% after adjusting for ₹46M in one-offs. New capacity starts next month.
— 2 earlier stories on Ellenbarrie Industrial Gases Ltd. →What's new
- Core gases revenue grew 9% sequentially in Q4; segment EBITDA margin reached 40% after ₹46M in one-offs.
- Uluberia 2 merchant plant is ramping up; a 320-ton/day on-site plant in East India starts next month.
- Argon prices recovered from Q3 lows, and management reiterated a 20% revenue CAGR and 40% margin target.
Why this matters
The call gives a clear read on Ellenbarrie's organic growth engine. Argon price recovery and a new on-site plant starting in weeks are the near-term earnings drivers. The 40% EBITDA margin, after stripping out ₹46M in non-recurring items, is the benchmark management is holding itself to.
What we're watching
- Commissioning of the East India on-site plant and its contribution to H1 volumes.
- Whether argon prices hold as merchant-plant capacity comes online.
- Progress toward the 20% CAGR target with existing order book and new capacity.
The full read
Ellenbarrie Industrial Gases saw core-gas revenue grow 9% sequentially in Q4, with segment EBITDA margin hitting 40% after adjusting for ₹46M in one-offs. Those charges, covering a leave-encashment provision, an investment impairment, and a customer settlement, are out of the way. The real story is the capacity build: the Uluberia 2 merchant plant is ramping, and a 320-ton/day on-site plant in East India starts next month. Argon prices, which dented Q3 margins, recovered. Management used the call to restate the 20% revenue CAGR and 40% margin targets, tying them to these new volumes. The 40% margin after one-offs is the clean baseline. The on-site plant is the next test of whether the company can hold it.
Questions answered
- What were the one-off charges in Q4?
- The ₹46M in one-offs included a provision for leave encashment, an impairment write-down on a legacy investment, and a commercial settlement with an on-site customer.
- How is the new capacity progressing?
- The Uluberia 2 merchant plant is already ramping up, while a separate 320-ton-per-day on-site plant in East India is expected to start production next month.
- Why are argon prices important to the margin story?
- Argon prices fell in Q3, pressuring margins. Management noted a recovery in Q4, which helped push the segment EBITDA margin to the 40% level after one-off adjustments.
- What is the long-term growth target?
- Management reiterated a target of a 20% revenue CAGR and a sustained 40% EBITDA margin, supported by the new capacity coming online and improving pricing.
Story so far
All notes on ELLEN →- 26 May 2026 · 4:12 PM IST Ellenbarrie posts 9% gas-segment growth, flags argon price recovery
- 16d ago Ellenbarrie trims growth target after project unit runs out of spare capacity
- 19d ago Ellenbarrie Industrial Gases' profit jumps 25% in first full year post-IPO