Buy Ingersoll Rand India; target of Rs 4540: Prabhudas Lilladher

Buy

Prabhudas Lilladher's research report on Ingersoll Rand India

We revise our FY26/27E EPS estimates by +4.0%/-0.3%, factoring in continued strong domestic demand and better execution. Ingersoll-Rand India (INGR) reported a strong quarter with revenue growing by 17.0% YoY and EBITDA margin expanding by 484bps YoY to 27.6%. IR India is well-positioned for its next phase of growth, driven by a Rs1.7bn greenfield capacity expansion which is expected to be fully operational from Q1FY26 and advancements in technology. As a leading player in the Indian air compressor market with an 18% market share and a 48% market share in the centrifugal compressor segment, the company benefits from robust demand-generation strategies, an optimized distribution network, and a strong focus on Make in India initiatives. Leveraging its parent company IR Inc.’s technological expertise, IR India has introduced ~50 new products over the past four years, further solidifying its market position. Additionally, its group procurement strategy enhances supply chain stability, supporting margin expansion. The company’s entry into hydrogen compression also opens new avenues for future growth.

Outlook

The stock is currently trading at a PE of 38.2x/32.4x on FY26/27E. We maintain ‘Buy’ rating with a revised TP of Rs4,540 (Rs4,467 earlier), valuing the stock at a PE of 45x Sep’26E (same as earlier).

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Ingersoll-Rand India - 17022025 - prabhu