Delton Cables Q2 FY27 Results (BSE: 504240)
Signal: Growth decelerated
The read
The key inflection is revenue acceleration to ₹35,783.32 lakh, +48.3% YoY and +25.0% QoQ, with estimated EBITDA margin at 8.3% versus 7.5% YoY; however, gross margin fell 382bps to 17.4% and finance costs rose 44.9% to ₹1,314.33 lakh, making cost absorption and balance-sheet funding the central trajectory question.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹357.83 Cr | +48.3% | +25.0% |
| Net profit | ₹12.49 Cr | +98.7% | |
| EPS | ₹14.46 | +98.6% | |
| EBIT margin | 8.3% |
P&L walk
Standalone revenue rose to ₹35,783.32 lakh, +48.3% YoY and +25.0% QoQ; gross margin compressed to 17.4% from 21.2% YoY, while estimated EBITDA margin expanded to 8.3% from 7.5% as employee costs grew only -1.7% YoY, but higher finance costs limited operating conversion.
Key positives
- Revenue rose to ₹35,783.32 lakh, +48.3% YoY and +25.0% QoQ, accelerating from ₹28,636.20 lakh in Q1FY27.
- PAT increased 98.7% YoY to ₹1,249.39 lakh and EPS increased 98.6% to ₹14.46, with no share-capital dilution indicated.
- Estimated EBITDA margin of 8.3% was 77bps above the year-ago level as employee benefits declined 1.7% YoY while revenue grew 48.3%.
- Operating cash flow turned positive at ₹1,190.32 lakh in H1FY27 versus an outflow of ₹3,049.09 lakh in H1FY26.
Key concerns
- Gross margin compressed 382bps YoY to 17.4% and 228bps QoQ, despite raw-material consumption declining to 70.6% of revenue from 75.5% YoY; the filing does not identify the margin driver.
- Finance costs rose 44.9% YoY to ₹1,314.33 lakh, materially faster than revenue growth, while total borrowings increased to ₹18,286.21 lakh from ₹16,061.46 lakh at 31 March 2026.
- Inventories increased to ₹27,057.70 lakh from ₹23,719.89 lakh at March 2026, tying up working capital despite positive H1 operating cash flow.
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