Hind.Organ.Chem. Q2 FY27 Results (BSE: 500449)
Signal: Loss reversed
The read
This is the third consecutive quarter of positive consolidated PAT after Q4FY26, Q1FY27 and Q2FY27, with Q2FY27 revenue up 86.1% YoY and gross margin at 42.1%; the inflection remains dependent on whether the margin recovery converts into cash, since operating cash flow was negative ₹7,047.50 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹234.95 Cr | +86.1% | +144.8% |
| Net profit | ₹35 Cr | N/M from loss | |
| EPS | ₹5.21 | N/M from loss |
P&L walk
Consolidated revenue rose to ₹23,495.12 lakh, gross margin expanded to 42.1% as raw-material intensity fell to 58.6%, and PAT recovered to ₹3,499.86 lakh; however, operating cash flow was negative ₹7,047.50 lakh.
Segments
The group is a single-segment Chemicals business; consolidated PAT of ₹3,499.86 lakh was only ₹14.87 lakh above continuing-operations profit because discontinued operations contributed ₹14.87 lakh.
Key positives
- Revenue from operations increased 86.1% YoY to ₹23,495.12 lakh, reversing the Q1FY27 revenue base of ₹9,599.62 lakh.
- Gross margin expanded to 42.1% from 22.7% YoY as raw-material cost declined to 58.6% of revenue from 69.7%; the filing does not disclose the precise driver.
- Consolidated PAT turned positive at ₹3,499.86 lakh from a ₹1,816.71 lakh loss, while EPS recovered to ₹5.21 from negative ₹2.70.
- The company states that the Kochi Phenol plant is operational and that there is no current-quarter exceptional-item impact from the prior legal liability matter.
Key concerns
- Operating cash flow was negative ₹7,047.50 lakh against consolidated PAT of ₹3,499.86 lakh, indicating weak cash conversion in the quarter.
- Finance cost increased 21.1% YoY to ₹637.56 lakh, even as revenue recovered 86.1%.
- The filing does not disclose volumes, realisations or capacity utilisation, so the durability of the revenue and gross-margin recovery cannot be established from this result.
- PPE declined ₹30.37 lakh and CWIP was flat at ₹89.44 lakh while depreciation rose 5.8% YoY, limiting evidence of a fresh productive capex cycle.
Research and educational content only. Not investment advice.