Buy Ingersoll Rand India; target of Rs 4522: Prabhudas Lilladher

Prabhudas Lilladher's research report on Ingersoll Rand India

We revise our FY27E EPS estimates by -1.4%, factoring in geopolitical and tariff related uncertainties for IR India’s export business. Ingersoll-Rand India (INGR) reported a decent quarter with revenue growing by 7.9% YoY and EBITDA margin expanding by 128bps YoY to 25.9%. The greenfield capacity expansion, expected to be operational from Q1FY26, will drive the next phase of growth for the company. The domestic demand for air compressors continues to remain robust, however, decision making delays may impact order finalization. The global parent has accounted for a ~10% tariff impact from EMEIA region in its CY25 guidance underscoring the uncertainty relating to the IR India’s exports to the parent.

Outlook

However, parents’ efforts to improve localization content in geographical subsidiaries augurs well for future growth and margin sustenance of IR India. We roll forward to Mar’27E and maintain our ‘Buy’ rating with a revised TP of Rs4,522 (Rs4,540 earlier) valuing the stock at a PE of 42x Mar’27E (45x Sep’26E earlier).

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Ingersoll-Rand India - 02062025 - prabhu