Vikram Thermo Q2 FY27 Results (BSE: 530477)
Signal: Margin pressure
The read
The trajectory remains growth-positive, with Q2 revenue up 28.1% YoY to ₹4436.87 lakh and PAT up 22.7% to ₹1358.92 lakh, but the Q1FY27 margin peak did not hold: EBITDA margin fell from 52.5% sequentially to 43.4% as other expenditure rose 39.7% YoY despite a 593bps gross-margin tailwind; the key question is whether the cost pressure is transient or structural.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹44.37 Cr | +28.1% | +17.1% |
| EBIT | ₹18.36 Cr | +22.7% | |
| Net profit | ₹13.59 Cr | +22.7% | |
| EPS | ₹4.33 | +22.7% | |
| EBIT margin | 43.4% |
P&L walk
Revenue grew 28.1% YoY to ₹4436.87 lakh and gross margin expanded 593bps to 61.4%, but EBITDA margin fell 196bps to 43.4% because other expenditure rose 39.7% YoY; PAT still increased 22.7% to ₹1358.92 lakh.
Key positives
- Revenue rose 28.1% YoY to ₹4436.87 lakh and 17.1% QoQ, maintaining double-digit growth momentum after Q1FY27 revenue growth of 32.4%.
- Gross margin expanded 593bps YoY to 61.4% as raw material cost declined to 38.6% of revenue from 44.2%; the filing does not disclose the driver.
- H1 operating cash flow increased 19.6% YoY to ₹2508.80 lakh, while the company ended September with net cash of ₹108.39 lakh versus ₹25.83 lakh at March 2026.
- PAT of ₹1358.92 lakh and EPS of ₹4.33 each grew 22.7% YoY, with EPS tracking PAT and no share-capital change.
Key concerns
- EBITDA margin compressed 196bps YoY to 43.4% and 915bps QoQ, as derived EBITDA growth of 22.6% lagged revenue growth of 28.1%.
- Other expenditure increased 39.7% YoY to ₹644.61 lakh, absorbing much of the 593bps gross-margin expansion.
- PPE declined to ₹5582.78 lakh while H1 depreciation rose 22.7% YoY to ₹177.37 lakh, requiring monitoring of the capital base and future capacity growth.
Research and educational content only. Not investment advice.