Raghuvir Synth Q2 FY27 Results (BSE: 514316)
Signal: Margin pressure
The read
The key inflection is revenue recovery without earnings recovery: revenue rose 32.4% YoY to ₹13,156.48 lakh, but stock-in-trade purchases of ₹7,029.94 lakh compressed gross margin by 476bps to 11.50%, EBITDA margin fell 299bps to 2.44%, and PAT dropped 91.4% to ₹20.02 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹131.56 Cr | +32.4% | +264.7% |
| EBIT | ₹1.52 Cr | -47.3% | |
| Net profit | ₹0.2 Cr | -91.4% | |
| EPS | ₹0.05 | -91.7% | |
| EBIT margin | 2.44% |
P&L walk
Revenue recovered to ₹13,156.48 lakh, +32.4% YoY and +264.7% QoQ, but gross margin compressed to 11.50% from 16.26% as stock-in-trade purchases reached ₹7,029.94 lakh from nil, while EBITDA margin fell to 2.44% from 5.43% and PAT declined 91.4% to ₹20.02 lakh.
Key positives
- Revenue from operations increased 32.4% YoY to ₹13,156.48 lakh and 264.7% QoQ from ₹3,606.86 lakh.
- Employee and other expenses increased 6.8% YoY to ₹1,205.49 lakh, materially slower than revenue growth.
- Basic EPS remained aligned with PAT: EPS declined 91.7% YoY to ₹0.05 versus a 91.4% PAT decline.
Key concerns
- Gross margin compressed 476bps YoY to 11.50% as stock-in-trade purchases rose to ₹7,029.94 lakh from nil in the year-ago quarter.
- EBITDA margin fell 299bps YoY to 2.44% and derived EBITDA declined 40.5% to ₹320.88 lakh despite 32.4% revenue growth.
- Finance costs increased 117.5% YoY to ₹128.77 lakh, further limiting conversion of revenue into profit.
- Trade receivables expanded to ₹10,630.24 lakh from ₹3,107.40 lakh at 31 March 2026, a ₹7,522.84 lakh increase against only ₹20.02 lakh of quarterly PAT.
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