Leapfrog Engg. H2FY26 Results (BSE: 544797)
Signal: Margin expansion
The read
Leapfrog Engineering's H2FY26 revenue surged 74% YoY to ₹52.27 Cr and operating margin expanded 169bps to 23.4%, marking a sharp inflection from its tepid <11% revenue growth in FY25, driven by execution of two large E-house orders won in July 2026. PAT for the half year jumped 685% to ₹7.52 Cr. Full-year revenue of ₹113.97 Cr and PAT of ₹13.49 Cr came in at the high end of the 13% 3-yr CAGR trajectory. The new listing (Jan 2026) means no H2 comparatives exist, but the underlying operating leverage story is clean — employee cost grew only 11% and other expenses 28% versus revenue growth of 74%. The stock trades at 15.98x P/E, a discount to industry P/E of 18x; the momentum from these orders should sustain near-term revenue visibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹52.27 Cr | 74.45% | N/A |
| EBIT | ₹12.25 Cr | N/A | |
| Net profit | ₹7.52 Cr | 685% | |
| EPS | ₹37.59 | N/A | |
| EBIT margin | 23.4% |
P&L walk
H2 revenue continued the strong growth from H1 (₹61.70 cr) albeit at a lower absolute, with operating margin of 23.4% vs 20.7% prior same period, driven by revenue growth outpacing fixed costs (employee cost +11%, other expenses +28% vs revenue +74%)
Key positives
- H2 revenue growth of 74.45% YoY driven by large E-house order from Oman (₹67.44 cr) and Cotmac order
- EBITDA margin improved 169bps YoY to 23.4% — strong operating leverage as employee cost grew only 11% vs revenue +74%
- Full-year PAT of ₹13.49 Cr (+13.65% YoY) outpaced revenue growth — margin expansion sustained
- Net profit for H2 at ₹7.52 Cr — a 685% YoY surge — reflects the inflection in scale
Key concerns
- No prior period comparatives for H2 figures (new listing) — trend reliability will depend on next half
- Revenue concentration risk: the two orders (Oman ₹67.44 cr, Cotmac ₹4.55 cr) together exceed H2 revenue — future order wins critical for sustainability
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