HCP Plastene Q2 FY27 Results (BSE: 526717)
Signal: Margin expansion
The read
The key inflection is a consolidated gross-margin recovery to 26.6%, up 424bps YoY as raw-material intensity fell to 71.8% of revenue from 76.1%; this lifted EBIT 60.0% to ₹1,821.00 lakh and PAT 95.5% to ₹976.33 lakh, but the 988bps sequential EBITDA-margin contraction and 33.0% finance-cost increase show that quarterly momentum remains uneven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹217.25 Cr | +9.9% | +24.7% |
| EBIT | ₹18.21 Cr | +60.0% | |
| Net profit | ₹9.76 Cr | +95.5% | |
| EPS | ₹9.24 | +97.9% | |
| EBIT margin | 9.4% |
P&L walk
Consolidated revenue rose to ₹21,725.37 lakh, +9.9% YoY and +24.7% QoQ; gross margin expanded to 26.6% from 22.3% as raw-material cost fell to 71.8% of revenue from 76.1%, lifting EBIT to ₹1,821.00 lakh, +60.0% YoY, while finance cost rose 33.0% and PAT increased to ₹976.33 lakh, +95.5%.
Segments
Woven Sacks drove the group with ₹21,667.57 lakh of revenue and ₹1,814.58 lakh of segment result, up 10.0% and 65.1% YoY respectively; Label Division revenue fell 13.7% to ₹57.80 lakh and result fell 83.6% to ₹6.42 lakh.
Key positives
- Consolidated gross margin expanded 424bps YoY to 26.6%, with raw-material cost declining to 71.8% of revenue from 76.1%; the filing does not disclose whether this reflects pricing, mix or input-cost changes.
- Consolidated EBIT rose 60.0% YoY to ₹1,821.00 lakh and EBITDA rose 54.5% to ₹2,040.73 lakh despite revenue growth of 9.9%.
- Operating cash flow improved to ₹3,790.13 lakh in H1FY27 from ₹67.38 lakh in H1FY26, while net debt declined ₹410.31 lakh from March 2026.
- Woven Sacks segment result increased 65.1% YoY to ₹1,814.58 lakh and remains the clear earnings engine.
Key concerns
- Consolidated EBITDA margin fell 988bps QoQ to 9.4%, and PAT fell 46.8% QoQ to ₹976.33 lakh from ₹1,834.64 lakh.
- Finance cost rose 33.0% YoY to ₹604.09 lakh, while consolidated borrowings remained ₹23,250.77 lakh at September 2026.
- Receivables increased to ₹16,355.63 lakh from ₹11,399.61 lakh and inventories to ₹10,290.01 lakh from ₹8,051.45 lakh, creating working-capital intensity despite stronger H1 operating cash flow.
- Label Division result declined 83.6% YoY to ₹6.42 lakh on revenue down 13.7% to ₹57.80 lakh.
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