High Energy Bat. Q2 FY27 Results (BSE: 504176)
Signal: Steady quarter
The read
The operating rebound is real but lower quality than the PAT headline suggests: revenue rose 68.0% YoY and EBITDA margin expanded to 29.4%, yet gross margin fell 650bps as material cost reached 39.0% of revenue, operating cash flow was negative ₹63.59 lakh for H1FY27, and net debt increased ₹612.83 lakh since March.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹29.08 Cr | +68.0% | +268.8% |
| EBIT | ₹8.21 Cr | +164.6% | |
| Net profit | ₹5.73 Cr | +184.4% | |
| EPS | ₹6.39 | +184.0% | |
| EBIT margin | 29.4% |
P&L walk
Revenue from operations rose to ₹2,907.75 lakh, +68.0% YoY and +268.8% QoQ, led by Aerospace, Naval and Power System Batteries; gross margin fell to 60.9% from 67.4% as material costs reached 39.0% of revenue, while EBITDA rose to ₹853.86 lakh and PAT to ₹572.64 lakh.
Segments
Aerospace, Naval and Power System Batteries drove the quarter with ₹2,907.12 lakh revenue and ₹846.32 lakh segment profit, while Lead Acid Storage Batteries generated zero revenue and a ₹13.51 lakh loss; the latter remains a drag pending the Q4 revival decision.
Key positives
- Revenue from operations rose to ₹2,907.75 lakh, +68.0% YoY, after ₹788.43 lakh in Q1FY27, indicating a sharp sequential recovery led by the Aerospace, Naval and Power System Batteries business.
- EBITDA increased to ₹853.86 lakh, +153.7% YoY, and EBITDA margin expanded to 29.4% from 19.3%, while employee, power and other expenses fell 23.0% YoY to ₹954.25 lakh.
- PAT rose to ₹572.64 lakh, +184.4% YoY, even as other income declined to ₹35.67 lakh from ₹410.24 lakh, making the earnings improvement primarily operational.
- PPE increased to ₹4,179.70 lakh and CWIP to ₹159.56 lakh while depreciation rose 24.7% to ₹32.56 lakh, a clean depreciation-to-asset-base signal.
Key concerns
- Gross margin compressed 650bps YoY to 60.9% as material cost plus inventory changes reached ₹1,135.17 lakh, or 39.0% of revenue versus 19.0% a year earlier; revenue growth did not prevent input-cost absorption.
- Operating cash flow was negative ₹63.59 lakh for H1FY27 despite H1 PAT of ₹391.14 lakh, while inventory increased to ₹5,059.48 lakh from ₹4,107.83 lakh at March 2026.
- Lead Acid Storage Batteries remained loss-making at ₹13.51 lakh with zero revenue, and management has not yet made the revival decision.
- Finance costs rose 31.1% YoY to ₹51.74 lakh as borrowings increased to ₹1,771.18 lakh and net debt rose to ₹1,761.74 lakh.
Research and educational content only. Not investment advice.