Remi Edelstahl Q2 FY27 Results (BSE: 513043)
Signal: Steady quarter
The read
The main inflection is revenue acceleration to +60.5% YoY, but it came with gross-margin compression of about 590bps to 28.7% as energy costs rose; finance costs also surged 258.3% YoY to ₹122.73 lakh, so the 87.0% PAT growth is not yet a clean margin-led improvement and EPS growth lagged because of the enlarged share base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹53.69 Cr | +60.5% | +52.6% |
| Net profit | ₹1.93 Cr | +87.0% | |
| EPS | ₹1.52 | +61.7% |
P&L walk
Standalone revenue rose to ₹5,368.66 lakh, +60.5% YoY and +52.6% QoQ, but gross margin compressed to 28.7% from 34.6% YoY as the company cited substantially higher energy costs; PAT increased 87.0% to ₹192.89 lakh, aided by operating growth but diluted at the EPS level by the larger share base.
Key positives
- Revenue from operations increased 60.5% YoY to ₹5,368.66 lakh and 52.6% QoQ, indicating a sharp improvement in current-period activity.
- PAT increased 87.0% YoY to ₹192.89 lakh, while employee benefits plus other expenses rose 21.3% YoY, materially slower than revenue.
- The order book stood at approximately ₹173 crore, including export orders from Middle East clients.
- Operating cash flow turned positive at ₹558.10 lakh in H1FY27 versus negative ₹499.33 lakh in H1FY26.
Key concerns
- Gross margin fell approximately 590bps YoY to 28.7% and 196bps QoQ; management stated that substantially higher energy costs adversely impacted half-year profitability.
- Finance costs rose 258.3% YoY to ₹122.73 lakh, outpacing revenue growth and reducing the benefit of higher operating profit.
- EPS growth of 61.7% lagged PAT growth of 87.0% because paid-up equity capital rose to ₹1,344.79 lakh after the preferential allotment.
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