Admach Systems H1FY27 Results (BSE: 544669)
Signal: Steady quarter
The read
The operating trajectory remains strong, with H1FY27 revenue up 48.34% to ₹4,220.27 lakh and PAT up 45.91% to ₹653.05 lakh, but the quality of per-share compounding weakened: EBITDA margin slipped 12bps to 23.57% as raw material intensity rose 11.71pp, while EPS growth of 7.47% materially lagged PAT because the equity base expanded by 35.73%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹42.2 Cr | +48.34% | N/A |
| EBIT | ₹8.83 Cr | +39.26% | |
| Net profit | ₹6.53 Cr | +45.91% | |
| EPS | ₹9.64 | +7.47% | |
| EBIT margin | 23.57% |
P&L walk
H1FY27 revenue increased 48.34% YoY to ₹4,220.27 lakh, while gross margin slipped 30bps to 32.64% as raw material cost rose to 71.14% of revenue; EBITDA margin was broadly stable at 23.57%, and PAT rose 45.91% to ₹653.05 lakh, but EPS increased only 7.47% because the share count expanded.
Key positives
- Revenue rose 48.34% YoY to ₹4,220.27 lakh, materially above the FY26 annual growth rate of 29.15%.
- PAT increased 45.91% YoY to ₹653.05 lakh despite other income declining 8.81% to ₹6.11 lakh, showing that the improvement was primarily operating-led.
- Operating cash flow was positive at ₹1,205.24 lakh in H1FY27 versus ₹452.89 lakh used in FY26, while trade receivables declined to ₹1,490.43 lakh from ₹3,132.15 lakh.
- Tangible PPE and CWIP increased to ₹3,124.91 lakh combined from ₹1,638.10 lakh, alongside depreciation rising 180.71% to ₹111.67 lakh, indicating substantial capacity and execution investment.
Key concerns
- Gross margin declined 30bps to 32.64% as raw material cost rose to 71.14% of revenue from 59.43%; the filing does not disclose a compensating pricing or mix driver.
- EPS rose only 7.47% to ₹9.64 versus PAT growth of 45.91% because paid-up shares increased from 49,90,200 to 67,72,800.
- Short-term borrowings increased from nil to ₹259.52 lakh and net cash reduced by ₹242.50 lakh despite cash increasing to ₹469.17 lakh, reflecting a more leveraged working-capital and investment profile.
- Short-term loans and advances rose to ₹2,214.47 lakh from ₹415.20 lakh, a ₹1,799.27 lakh increase that requires monitoring against reported profit and operating cash flow.
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