Shares of Ellenbarrie Industrial Gases Ltd. have experienced a significant downturn, plummeting almost 60% from their 52-week high of Rs 637, reached in July 2025. The stock, which debuted on the bourses in June 2024 at Rs 400 per share, is also down 35% from its IPO price. On Wednesday, May 27, 2026, the stock traded around Rs 258, reflecting a 2.4% dip.
Despite Decline, Analysts See Strong Fundamentals
Despite the sharp correction and ongoing pressure in 2026, leading brokerage firms continue to express a bullish outlook on Ellenbarrie Industrial Gases. Analysts point to robust earnings growth and strategic capacity expansion initiatives as key drivers for a potential recovery in the stock's performance.
Q4 FY26 Performance Highlights
For the quarter ending March 31, 2026, Ellenbarrie Industrial Gases reported a net profit of Rs 22.88 crore, marking a 25.41% increase year-over-year. Revenue for the same period grew by 6.02% year-over-year to Rs 87.43 crore. The company's EBITDA rose by 15.95% year-over-year to Rs 41.73 crore, with margins improving to 47.7% for the reported quarter.
JM Financial Maintains 'Buy' Rating
While Ellenbarrie's EBITDA and adjusted PAT for Q4 FY26 were slightly below expectations due to non-recurring items, JM Financial has reiterated its 'buy' rating for the stock. The brokerage firm, which marginally cut its FY27E–FY28E estimates by 1–3% to account for FY26 results and a delay in revenue contribution from its East onsite plant, projects significant growth.
"We maintain 'buy' as we expect Ellenbarrie to deliver a CAGR of 24 per cent, 30 per cent and 27 per cent in revenue, Ebitda and profit over FY26‒29E driven by 24 per cent CAGR in merchant volume on account of strong capacity expansion and improvement in ebitda margin to 39 per cent in FY28 (due to a rise in the proportion of revenue from higher-margin argon)," stated JM Financial, setting a target price of Rs 345.
Motilal Oswal Also Bullish, Raises Estimates
Motilal Oswal Financial Services also highlighted Ellenbarrie's strong performance in Q4 FY26, attributing it to improving operating leverage within the core gases business. The firm anticipates an acceleration in growth momentum, fueled by the ramp-up of the Uluberia-II (220 TPD) facility and the expected commissioning of the East India onsite plant (320 TPD) in Q1 FY27.
"We raise our earnings estimates of FY27/FY28 by 6 per cent each, driven by the rampup of the newly commercialized plants and the strategic efforts towards power cost optimization. We reiterate our 'buy' rating with a target price of Rs 330 (based on 26 times FY28E EPS)," Motilal Oswal added.
Both brokerage firms' positive outlook underscores confidence in Ellenbarrie Industrial Gases Ltd.'s long-term growth trajectory, driven by strategic expansions and operational efficiencies, despite recent stock volatility.