Uni Abex Alloy Q2 FY27 Results (BSE: 504605)
Signal: Margin expansion
The read
The main inflection is a 1690bps YoY gross-margin expansion, with raw material cost falling to 32.0% of revenue from 48.9%; this lifted operating margin to approximately 27.0% and PAT to ₹665.28 lakh, but the absence of a disclosed driver and H1 operating cash outflow of ₹1199.19 lakh make the margin tailwind unconfirmed and working-capital conversion the key monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹41.35 Cr | +9.33% | +0.77% |
| EBIT | ₹10.96 Cr | +118.27% | |
| Net profit | ₹6.65 Cr | +32.55% | |
| EPS | ₹33.61 | +32.27% | |
| EBIT margin | 27.0% |
P&L walk
Standalone Q2FY27 revenue was ₹4135.08 lakh, +9.33% YoY and +0.77% QoQ; gross margin expanded to 68.0% as material cost fell to 32.0% of revenue from 48.9% YoY, lifting operating margin to 27.0% and PAT to ₹665.28 lakh, +32.55% YoY, while finance costs rose 51.11%.
Segments
The company reports only one operating segment, Alloy and Steel Castings, so the ₹4135.08 lakh consolidated-equivalent revenue and ₹665.28 lakh PAT cannot be attributed across divisions.
Key positives
- Revenue reached ₹4135.08 lakh, +9.33% YoY and +0.77% QoQ, maintaining growth despite a high base.
- Gross margin expanded approximately 1690bps YoY to 68.0% as raw material cost fell to 32.0% of revenue from 48.9%.
- PAT increased 32.55% YoY to ₹665.28 lakh and EPS rose approximately 32.27% to ₹33.61, broadly tracking profit.
- The company remained in a net cash position, with cash and equivalents of ₹1345.02 lakh versus borrowings of ₹154.80 lakh.
Key concerns
- The driver of the 1690bps gross-margin expansion is not disclosed, making the unusually large tailwind difficult to underwrite as structural.
- Employee costs rose 64.80% YoY to ₹511.12 lakh, substantially faster than revenue growth and offsetting part of the material-cost benefit.
- H1FY27 operating cash flow was negative ₹1199.19 lakh versus positive ₹1731.13 lakh in H1FY26, despite H1 PAT of ₹1390.73 lakh.
- PAT declined approximately 8.29% QoQ from ₹725.45 lakh in Q1FY27, while operating margin was broadly stable at approximately 27.0% versus 27.1%.
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