LINDEINDIA - Linde India

📊 NSE: LINDEINDIA 🏢 Chemicals 📅 Last Updated: 12/14/2025 9:18

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations was INR 2,485.4 Cr in FY 2024-25, a 10.2% decline from INR 2,768.7 Cr. The Gases segment grew 2% to INR 2,040.8 Cr, while the Project Engineering Division (PED) declined 42.1% to INR 444.6 Cr due to project cycles and selective bidding.

Geographic Revenue Split

Linde India operates across East, North, and West-2 geographies following a business allocation agreement. While specific % splits per region are not disclosed, the company exited South, Central, and West-1 regions in favor of Praxair India (PIPL).

Profitability Margins

Profit After Tax (PAT) grew 5% to INR 447.8 Cr in FY 2024-25. PAT margin improved to 18.01% from 15.39% YoY. Standalone PAT margin was historically volatile, recorded at 41.3% in 2019 due to divestment gains and 10.15% in 2020.

EBITDA Margin

Consolidated EBITDA margin expanded by 536 basis points to 33.5% in FY 2024-25. Gases segment EBITDA margin rose to 35.9% (from 33.8%) and PED margin improved significantly to 22.4% (from 13.5%) due to project closures and cost discipline.

Capital Expenditure

Non-current assets increased 45% to INR 4,117.8 Cr in FY 2024-25, reflecting heavy investment in growth capex. Cash and equivalents dropped 85% from INR 978.8 Cr to INR 145.4 Cr as funds were deployed into multiple construction projects.

Credit Rating & Borrowing

Maintains a strong credit profile supported by parent Linde Plc. Interest coverage ratio was 65.54 times in 2020. Debt was significantly reduced via a INR 866.8 Cr prepayment in 2019, bringing the debt-to-equity ratio down to 0.05 times.

⚙️ Operational Drivers

Raw Materials

Atmospheric air (primary source for ASUs), electricity (major cost component), and specialty chemicals like Silane, Ammonia, and Nitrous Oxide for the electronics/solar segments.

Import Sources

Sourced domestically through air separation units located near customer sites; specialty gases are often sourced through the global Linde Plc supply chain network spanning 100 countries.

Key Suppliers

Primary utility providers for electricity; specialty gas precursors sourced via Linde Plc affiliates and global chemical manufacturers.

Capacity Expansion

Expanding capacity through de-captivation of two additional Air Separation Units (ASUs) for Tata Steel in Odisha. Property, Plant & Equipment (PPE) increased 5% to INR 1,851.5 Cr in FY 2024-25.

Raw Material Costs

Power and fuel costs are the largest variable expense for air separation. The company focuses on 'take-or-pay' contracts (15-20 years) to pass through energy cost fluctuations to tonnage customers.

Manufacturing Efficiency

Focus on operational excellence and digital transformation to drive a 536 bps expansion in EBITDA margins despite a 10% drop in total revenue.

Logistics & Distribution

Operates the largest direct sales and distribution network in India for industrial gases, utilizing a specialized fleet of cryogenic tankers for bulk liquid transport.

📈 Strategic Growth

Expected Growth Rate

6.80%

Growth Strategy

Focusing on high-margin long-term contracts, de-captivating onsite ASUs for major steel players, and targeting high-growth sectors like Semiconductors, Solar (SPC products), and Healthcare (Tier 2/3 city expansion).

Products & Services

Industrial gases (Oxygen, Nitrogen, Argon), Medical gases, Special gases (Nitrous Oxide, Silane, Ammonia), and Project Engineering services for cryogenic plant construction.

Brand Portfolio

Linde, BOC (subsidiary of Linde AG).

New Products/Services

Niche Specialty Gas (SPC) products for the semiconductor and solar industries, including high-purity Nitrogen and Silane, expected to drive future electronics segment revenue.

Market Expansion

Targeting the $5 trillion Indian economy goal by 2027 with focus on 11 Industrial Corridors and 100 Smart City projects to drive gas demand.

Market Share & Ranking

One of the largest players in the domestic industrial gases business with over 75 years of presence in India.

Strategic Alliances

Business Allocation Agreement with Praxair India (PIPL) for geographic and product-line specialization; JV with Bellary Oxygen Company (slated for divestment).

🌍 External Factors

Industry Trends

Shift toward 'Green Gases' and energy transition leadership. The industry is evolving from simple gas supply to end-to-end 'tonnage' solutions and de-captivation of customer-owned plants.

Competitive Landscape

Key competition includes Praxair India (though now a related party via parent merger), Air Liquide, and Inox Air Products.

Competitive Moat

Sustainable moat derived from 15-20 year take-or-pay contracts, high capital intensity of ASUs (entry barrier), and 75+ years of brand equity and technical expertise.

Macro Economic Sensitivity

Highly sensitive to Industrial Production (IP) growth (4.8%) and GDP growth (6.4-6.8%), as industrial gas demand is a direct derivative of manufacturing activity.

Consumer Behavior

Increased demand for home healthcare and medical oxygen in Tier 2 and 3 cities is driving a shift in the healthcare distribution model.

Geopolitical Risks

Trade barriers affecting the semiconductor or solar supply chains could delay the adoption of niche specialty gases in India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Competition Commission of India (CCI) mandates, which previously required the divestment of southern region assets and the Bellary Oxygen Plant to maintain market competition.

Environmental Compliance

Committed to net-zero emissions by 2070; focus on decarbonizing the steel sector through hydrogen and carbon capture initiatives.

Taxation Policy Impact

Effective tax expense was INR 606.5 Cr in FY 2024-25. Fiscal policies supporting 'Make in India' and PLI schemes for electronics benefit the company's long-term demand.

Legal Contingencies

Involved in a legal dispute regarding the 'Business Allocation Agreement' with PIPL; regulators have directed a valuation to determine if the transfer of 'profit-making apparatus' exceeds RPT materiality thresholds.

⚠️ Risk Analysis

Key Uncertainties

The outcome of the SEBI/WTM direction regarding the valuation of business allocation with PIPL could impact shareholder approval requirements and future corporate structure.