India’s urban skyline is rising fast — and quietly powering that vertical growth is Otis Elevator (India) Limited, one of the oldest and most established elevator companies in the country.
Founded in 1953 and headquartered in Mumbai, the company focuses on elevators, escalators, and moving walkways. But beyond installations, its real strength lies in recurring service and modernization revenue.
Otis operates across three core segments:
Segment | Description | Revenue Nature |
|---|---|---|
| New Equipment | Selling & installing elevators | Cyclical |
| Services | Maintenance & repairs | Recurring |
| Modernization | Upgrading old systems | High-margin growth |
The company also manufactures locally in Bengaluru, improving cost efficiency and localization.
| Particulars | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue (₹ Cr) | 2435 | 2771 | 3162 |
| EBITDA (₹ Cr) | 202 | 255 | 193 |
| EBITDA Margin (%) | 8.3 | 9.2 | 6.1 |
| PAT (₹ Cr) | 154 | 210 | 191 |
| Net Margin (%) | 6.32 | 7.58 | 6.04 |
Key Insights
Revenue grew ~62% over 4 years
Profit peaked in FY24, declined in FY25
Margins are compressing despite growth
| Expense Head | 2024 | 2025 |
|---|---|---|
| Raw Material | 1455 | 1710 |
| Employee Cost | 491 | 529 |
| Other Expenses | 570 | 750 |
Costs are rising faster than revenue
Other expenses nearly doubled
Despite scale, margins are falling — indicating pricing pressure or rising service costs.
| Metric | 2024 | 2025 |
|---|---|---|
| Total Assets | ₹1898 Cr | ₹2410 Cr |
| Debt | ₹0 | ₹0 |
| Reserves | ₹257 Cr | ₹449 Cr |
| Total Equity | ₹269 Cr | ₹461 Cr |
| ROE | 78% | 41.45% |
Highlights
Debt-free company
Extremely decline in ROE
Strong capital efficiency
| Particulars | 2023 | 2024 | 2025 |
|---|---|---|---|
| CFO (₹ Cr) | 202 | 264 | 291 |
| Net Cash (₹ Cr) | 5 | 114 | 292 |
| Cash Balance (₹ Cr) | 540 | 653 | 946 |
Interpretation
Strong and consistent cash generation
Cash reserves nearly doubled
Business is highly cash-rich
Otis is focusing on:
Gen2 product family
Gen2 Life (mid-rise segment)
Modernization products (Manual to Auto, Gen2 Mod)
New installations drive volume, but services and modernization drive margins and predictability.
| Metric | Value |
|---|---|
| Price per Share | ₹3850 |
| Market Cap | ₹4546 Cr |
| P/E Ratio | 23.8 |
| P/B Ratio | 9.66 |
| Book Value | ₹398.71 |
| EPS (2025) | ₹161.73 |
Bottom Line
Otis India is a steady compounder backed by strong cash flows and high efficiency. However, margin compression is a key monitorable.
If margins stabilize, the story remains strong. If not, valuations may come under pressure.
Otis isn’t just lifting people — it’s lifting cash flows. The real challenge now is lifting margins.