Indag Rubber Q2 FY27 Results (BSE: 509162)
Signal: Margin pressure
The read
The trajectory is mixed: Q2 revenue recovered 17.3% YoY to ₹6749.09 lakh and 29.0% sequentially, but EBITDA margin fell 440bps YoY to 4.82% after the prior three quarters of margin expansion, while PAT declined 9.3% to ₹327.84 lakh. H1 revenue was up 28.5% to ₹12504.29 lakh, but H1 operating cash flow turned negative at ₹769.10 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹67.49 Cr | +17.3% | +29.0% |
| Net profit | ₹3.28 Cr | -9.3% | |
| EPS | ₹1.25 | -9.4% | |
| EBIT margin | 4.82% |
P&L walk
Standalone revenue increased 17.3% YoY to ₹6749.09 lakh, but EBITDA fell 38.7% to ₹325.16 lakh and margin contracted 440bps to 4.82%; PAT declined 9.3% to ₹327.84 lakh as other income also fell 19.0%.
Key positives
- Revenue increased 17.3% YoY to ₹6749.09 lakh and 29.0% sequentially, reversing the prior-year decline in quarterly revenue.
- Materials cost grew 15.3% YoY versus 17.3% revenue growth, producing a 124bps expansion in the materials-based gross margin to 26.03%.
- Employee benefits expense was broadly controlled, rising only 2.8% YoY to ₹622.72 lakh despite 17.3% revenue growth.
- The auditor issued an unmodified opinion with no qualification, reservation or adverse remark.
Key concerns
- EBITDA declined 38.7% YoY to ₹325.16 lakh and EBITDA margin contracted 440bps to 4.82%, reversing the margin expansion seen in the preceding three quarters.
- PAT fell 9.3% YoY to ₹327.84 lakh despite 17.3% revenue growth, showing weak conversion of sales growth into earnings.
- H1 operating cash flow was negative ₹769.10 lakh versus positive ₹1466.55 lakh in the prior-year half, with inventories rising to ₹5827.30 lakh from ₹4721.41 lakh.
- Other income declined 19.0% YoY to ₹234.49 lakh, reducing support to PBT and PAT.
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