Simm. Marshall Q2 FY27 Results (BSE: 507998)
Signal: Steady quarter
The read
The trajectory is revenue acceleration with modest EBITDA-margin improvement: consolidated revenue grew +27.05% YoY and EBITDA +30.80%, but gross margin compressed 261bps as raw-material intensity rose to 41.22%; lower finance cost, rather than a major operating inflection, helped PAT grow +31.75%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹74.49 Cr | +27.05% | +15.22% |
| EBIT | ₹8.49 Cr | +39.28% | |
| Net profit | ₹4.99 Cr | +31.75% | |
| EPS | ₹4.46 | +31.95% | |
| EBIT margin | 13.68% |
P&L walk
Consolidated revenue increased to ₹7,449.16 lakh, +27.05% YoY and +15.22% QoQ, while EBITDA rose to ₹1,019.08 lakh, +30.80% YoY, but gross margin compressed 261bps as raw-material cost increased to 41.22% of revenue; lower finance cost supported PAT growth to ₹499.34 lakh, +31.75%.
Segments
The company reports a single segment, manufacturing of industrial fasteners; the subsidiary added ₹624.88 lakh of quarterly income and ₹12.75 lakh of net profit, lifting consolidated revenue above standalone by ₹478.57 lakh while consolidated PAT exceeded standalone PAT by only ₹0.13 lakh.
Key positives
- Consolidated revenue reached ₹7,449.16 lakh, +27.05% YoY and +15.22% QoQ, accelerating from the year-ago quarter.
- EBITDA rose to ₹1,019.08 lakh, +30.80% YoY, ahead of revenue growth by 3.75 percentage points, with EBITDA margin expanding 39bps to 13.68%.
- Finance costs fell 21.48% YoY to ₹179.10 lakh, supporting PBT growth of 75.61% to ₹670.31 lakh.
- EPS rose 31.95% YoY to ₹4.46 with unchanged paid-up capital of ₹224.00 lakh.
Key concerns
- Gross margin compressed 261bps YoY to 58.22% as raw-material cost increased to 41.22% of revenue from 38.71%; material costs grew 35.31%, faster than revenue growth of 27.05%, indicating cost absorption.
- H1 consolidated operating cash flow fell to ₹1,535.63 lakh from ₹1,851.46 lakh despite H1 PAT rising to ₹882.95 lakh from ₹602.58 lakh.
- Consolidated trade receivables increased to ₹4,231.30 lakh from ₹3,338.92 lakh and inventories to ₹6,022.21 lakh from ₹5,558.90 lakh at March 31, 2026.
Research and educational content only. Not investment advice.