Systematic Inds. H1FY26 Results (BSE: 544541)
Signal: Growth reaccelerated
The read
The operating inflection is positive but not yet cash-backed: H1FY26 revenue grew 22.7% and PAT 37.4%, while EBITDA margin contracted 17bps to 6.9%, operating cash flow turned negative at ₹3,715.97 lakh and net debt increased by ₹6,539.22 lakh to ₹6,241.67 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹311.36 Cr | 22.7% | N/A |
| EBIT | ₹18.04 Cr | 0.6% | |
| Net profit | ₹12.75 Cr | 37.4% | |
| EPS | ₹5.71 | 3.4% | |
| EBIT margin | 6.9% |
P&L walk
Standalone H1FY26 revenue rose 22.7% YoY to ₹31,136.30 lakh and PAT rose 37.4% to ₹1,275.43 lakh, helped by finance-cost reduction, while EBITDA margin slipped 17bps to 6.9% and operating cash flow turned negative at ₹3,715.97 lakh.
Key positives
- Revenue from operations rose 22.7% YoY to ₹31,136.30 lakh, with gross margin broadly stable at 18.8% versus 18.6% despite the higher-cost base.
- PAT increased 37.4% to ₹1,275.43 lakh as finance costs fell 56.4% to ₹198.07 lakh.
- PPE plus CWIP rose 29.2% to ₹7,715.98 lakh, supporting the company's disclosed capacity-expansion trajectory.
- The company completed a preferential allotment of 14,57,400 shares at ₹228 each, raising ₹33,22,87,200 and acquiring 9,996 WBIPL shares through share swap consideration.
Key concerns
- Operating profit grew 19.7% to ₹2,146.06 lakh, below 22.7% revenue growth, resulting in a 17bps EBITDA-margin contraction to 6.9%.
- Operating cash flow was negative at ₹3,715.97 lakh as inventories rose to ₹8,625.58 lakh and trade receivables to ₹8,790.27 lakh.
- Net debt increased by ₹6,539.22 lakh to ₹6,241.67 lakh while cash fell to ₹175.66 lakh.
- EPS rose only 3.4% to ₹5.71 versus 37.4% PAT growth, creating a clear PAT-to-EPS divergence.
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