Brokerage firms continue to remain bullish on Ellenbarrie Industrial Gases Ltd despite the stock correcting sharply from its peak. Shares have fallen nearly 60 per cent from their all-time high and remain under pressure in 2026, but analysts believe strong earnings growth and capacity expansion could drive a recovery.

To recall, shares of Ellenbarrie Industrial Gases were listed on the bourses in June 2024, when the company raised Rs 853 crore via its primary stake sale, selling its shares of Rs 400 apeice. The stock is down 35 per cent from its IPO price and down 60 per cent from its all time high at Rs 637, hit in July 2025. The stock was down 2.4 per cent on Wednesday, falling to Rs 258-levels.

Ellenbarrie Industrial Gases reported a net profit of Rs 22.88 crore, up 25.41 per cent on a yearly basis, while revenue increased 6.02 per cent YoY to Rs 87.43 crore for the quarter ended on March 31, 2026. Its Ebitda was up 15.95 per cent YoY to Rs 41.73 crore, while margins improved to 47.7 per cent for the reported quarter.

Ellenbarrie's Ebitda was lower than expectations impacted by non-recurring items and adjusted PAT was also below estimates, said JM Financial which has cut FY27E‒FY28E by 1‒3 per cent, accounting for FY26 results and building in delay in revenue contribution from the East onsite

"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," it said, giving a target price of Rs 345.

On the other hand, Motilal Oswal Financial Services believes that Ellenbarrie delivered a strong performance in 4QFY26, reflecting improving operating leverage in the core gases business. It expects growth momentum to accelerate, driven by the ramp-up of the Uluberia-II (220 TPD) facility, commissioning of the East India onsite plant (320 TPD) in Q1FY27.

"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.