Indo SMC H1FY27 Results (BSE: 544681)
Signal: Margin pressure
The read
The trajectory remains high-growth but less profitable: revenue rose 92.0% YoY to ₹21,610.36 lakh and PAT 76.2% to ₹2,018.29 lakh, while gross margin contracted 700bps and EBITDA margin fell 384bps as material costs reached 89.87% of revenue; the next confirmation point is whether this input-cost pressure reverses as CT/PT-led growth continues.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹216.1 Cr | 92.0% | N/A |
| EBIT | ₹24.85 Cr | 45.1% | |
| Net profit | ₹20.18 Cr | 76.2% | |
| EPS | ₹8.83 | 28.5% | |
| EBIT margin | 11.90% |
P&L walk
Revenue increased 92.0% YoY to ₹21,610.36 lakh, led by CT/PT Products at ₹16,602.95 lakh and FRP Products at ₹1,613.79 lakh, but gross margin fell 700bps to 20.66% as material costs rose to 89.87% of revenue; EBITDA margin declined 384bps to 11.90%, while PAT still rose 76.2% to ₹2,018.29 lakh, helped by lower finance cost and a favourable tax comparison.
Segments
CT/PT Products drove the group with ₹16,602.95 lakh of revenue, up 117.1% YoY, and ₹1,626.87 lakh of segment result, while FRP Products grew 96.0% to ₹1,613.79 lakh and SMC Products remained the slowest-growing unit at 22.4%.
Key positives
- CT/PT Products revenue rose 117.1% YoY to ₹16,602.95 lakh and contributed ₹1,626.87 lakh of segment result, making it the principal growth engine.
- FRP Products revenue increased 96.0% YoY to ₹1,613.79 lakh, while segment result rose to ₹188.01 lakh from ₹121.24 lakh.
- Employee and other expenditure increased 41.1% YoY to ₹1,892.70 lakh, materially slower than revenue growth of 92.0%.
- Finance cost declined 28.2% YoY to ₹227.61 lakh and depreciation rose 47.4% alongside a larger asset base, producing a clean depreciation-to-capex cross-check.
Key concerns
- Gross margin fell 700bps YoY to 20.66% as material consumed rose to 89.87% of revenue from 82.12%; the filing does not disclose a specific mitigation or pricing response.
- Operating cash flow was negative at ₹989.20 lakh despite ₹2,451.68 lakh of PBT, driven by ₹2,585.53 lakh absorbed in inventory and ₹1,674.61 lakh in trade receivables.
- EPS rose only 28.5% to ₹8.83 versus PAT growth of 76.2%, with the comparable paid-up capital base rising from ₹1,668.44 lakh to ₹2,285.54 lakh.
- Net debt moved from net cash of ₹660.49 lakh at 31-03-2026 to net debt of ₹730.31 lakh at 30-09-2026.
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