Organic Recyclin H1FY27 Results (BSE: 543997)
Signal: Margin pressure
The read
The trajectory remains strong on execution and order intake, with revenue up 151.82% to ₹7,700.12 lakh and five BPCL contracts representing a ₹350–500 crore order-book range, but the quality of growth is weaker than the headline because EBITDA margin compressed 2308bps to 25.01%, operating cash flow was negative ₹923.54 lakh, and diluted EPS fell 12.90% after equity issuance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹770.01 Cr | 151.82% | N/A |
| EBIT | ₹165.75 Cr | 29.80% | |
| Net profit | ₹157.97 Cr | 30.57% | |
| EPS | ₹10.13 | -12.90% | |
| EBIT margin | 25.01% |
P&L walk
Consolidated revenue increased 151.82% to ₹7,700.12 lakh, but stock-in-trade and inventory costs compressed gross margin to 40.20% from 80.41%; EBITDA grew 30.97% to ₹1,926.00 lakh while margin fell to 25.01%, and PAT rose 30.57% to ₹1,579.74 lakh.
Segments
The company reports a single segment, but the ₹1,579.74 lakh consolidated PAT versus ₹242.21 lakh standalone PAT indicates that group entities contributed ₹1,337.53 lakh, making subsidiaries the primary source of reported earnings.
Key positives
- Consolidated revenue rose 151.82% to ₹7,700.12 lakh, with management citing product sales and consulting and service contributions.
- Five BPCL EPCOM contract wins represent a reported ₹350–500 crore order-book range and proposed combined CBG capacity of 24.6 TPD.
- PAT increased 30.57% to ₹1,579.74 lakh despite a 2308bps EBITDA-margin contraction, indicating that operating profitability remained positive at ₹1,926.00 lakh.
- The Gorakhpur O&M mandate was renewed, supporting recurring service revenue in addition to project execution.
Key concerns
- Gross margin compressed to 40.20% from 80.41% as stock-in-trade and inventory costs rose to 59.80% of revenue from 19.59%; revenue grew 151.82% while the associated cost base grew 668.72%, indicating cost absorption rather than clear pricing power.
- EBITDA grew 30.97% to ₹1,926.00 lakh, materially below revenue growth of 151.82%, and EBITDA margin fell from 48.09% to 25.01%.
- Operating cash flow was negative ₹923.54 lakh while consolidated PBT was ₹1,681.61 lakh, with trade receivables rising 35.20% to ₹9,420.94 lakh from March 31, 2026.
- Diluted EPS fell 12.90% to ₹10.13 despite PAT growth of 30.57% because warrant conversion and the bonus issue increased paid-up equity capital by ₹693.96 lakh.
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