Synopsis: Esab India shares surged 15% after the company reported an 83% YoY profit jump in Q2 FY26 and declared an interim dividend of Rs. 25 per share, reflecting strong operational growth and margin improvement.
This company is a leading supplier of welding and cutting products in India. It is a subsidiary of ESAB Group, which was ultimately owned by the Colfax Corporation of the USA and is now in the spotlight after it reported Q2 results and an interim dividend of Rs. 25 per share.
With market capitalization of Rs. 8,205 cr, the shares of Esab India Ltd are currently trading at Rs. 5,327 per share, jumping 15% in today’s market session, making a high of Rs. 5,567.50, from its previous close of Rs. 4,847.20 per share. The stock has given a negative return of 12% in the past year. It gave 13% in return in the last 6 months.
Quarter-on-Quarter (QoQ) Performance:
Esab India reported a strong sequential performance in Q2 FY26, with sales rising 8.5% to Rs. 382 crore from Rs. 352 crore in the Q1FY26. EBITDA grew 22% to Rs. 72.2 crore compared to Rs. 59.2 crore in June 2025, while net profit nearly doubled up 93.6% to Rs. 79.2 crore from Rs. 40.9 crore. Earnings per share (EPS) also surged 93.5% to Rs. 51.45 from Rs. 26.60 in the prior quarter, reflecting significant operational and margin improvements.
Year-on-Year (YoY) Performance:
On an annual comparison, Esab India delivered a robust performance with sales up 13% from Rs. 339 crore in Q2FY25 to Rs. 382 crore in Q2FY26. EBITDA increased 17% from Rs. 61.5 crore to Rs. 72.2 crore, while net profit surged 83.33% YoY from Rs. 43.2 crore to Rs. 79.2 crore. Correspondingly, EPS rose sharply by 83%, from Rs. 28.04 to Rs. 51.45, highlighting strong profitability and sustained growth momentum.
Dividend Update
Esab India Limited announced an interim dividend of Rs. 25 per share (250%) for FY2025–26, amounting to a total payout of Rs. 38.48 crore. The record date for determining eligible shareholders is November 14, 2025, and the dividend will be paid on or before December 8, 2025.
About the company
ESAB India Ltd is a leading manufacturer of welding and cutting products, providing advanced solutions for industrial fabrication and construction sectors. The company offers a wide range of welding electrodes, equipment, and automation systems, serving both domestic and international markets. It is known for its strong financial performance, high returns, and consistent dividend payouts.
The company has delivered a strong profit growth of 19.7% CAGR over the past five years, with an impressive ROCE of 70% and ROE of 52.3%. It also maintains a robust 3-year average ROE of 54.1% and a healthy dividend payout ratio of 82.9%.
Written by Manideep Appana
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