Bhatia Communic. Q2 FY27 Results (BSE: 540956)
Signal: Margin expansion
The read
The trajectory remains growth-positive but is decelerating: revenue growth moderated to +51.7% YoY from +70.3% in Q1FY27, while gross margin expanded 264bps and EBITDA margin recovered to 5.97% from 4.65% a year earlier; PAT growth accelerated to +101.4%, supported by operating margin and slower finance-cost growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹203.72 Cr | 51.7% | 7.2% |
| Net profit | ₹7.51 Cr | 101.4% | |
| EPS | ₹0.53 | 96.3% | |
| EBIT margin | 5.97% |
P&L walk
Standalone revenue increased to ₹20,372.33 lakh, +51.7% YoY and +7.2% QoQ, while gross margin expanded 264bps YoY and EBITDA margin rose 132bps to 5.97%; PAT growth of 101.4% was supported by operating improvement rather than a material finance-cost increase.
Segments
The company reports a single operating segment, so the filing provides no segment-level evidence to locate the revenue or margin momentum.
Key positives
- Revenue reached ₹20,372.33 lakh, +51.7% YoY and +7.2% QoQ, sustaining rapid expansion despite deceleration from Q1FY27's +70.3% YoY.
- Gross margin expanded 264bps YoY to 12.85% as cost of sales fell to 87.15% of revenue from 89.79%, although the filing does not identify the cause.
- EBITDA rose 94.6% YoY to ₹1,216.22 lakh and EBITDA margin expanded 132bps to 5.97%; employee and other operating expenses grew only 7.9% YoY versus revenue growth of 51.7%.
- Operating cash flow was positive at ₹3,270.44 lakh in H1FY27, while PPE increased 15.9% to ₹2,612.07 lakh.
Key concerns
- Inventory increased 53.8% from 31 March 2026 to ₹14,801.55 lakh, materially tying up capital as the business scales.
- Net debt increased by ₹770.33 lakh to ₹2,105.63 lakh from 31 March 2026, despite cash rising to ₹1,674.54 lakh.
- Revenue growth moderated to +51.7% YoY from +70.3% in Q1FY27, and the filing does not disclose volume, ASP or product-mix data to validate the growth quality.
Research and educational content only. Not investment advice.