Aditya Bir. Fas. Q2 FY27 Results (NSE: ABFRL)
Signal: Loss widened
The read
The quarter reverses the prior recovery: revenue grew 10.7% YoY in Q1FY27 but declined 0.4% YoY in Q2FY27, while operating margin fell 607bps YoY to -9.75% and the net loss widened 63.0% to 180.44 crore. The key issue is cost absorption, with employee costs up 9.6% and depreciation up 7.3% despite lower PPE and CWIP.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,511.04 Cr | -0.4% | -3.0% |
| Net profit | ₹-180.44 Cr | -63.0% | |
| EPS | ₹-1.48 | -62.6% | |
| EBIT margin | -9.75% |
P&L walk
Standalone revenue declined 0.4% YoY and 3.0% QoQ to 1,511.04 crore; operating margin contracted to -9.75% from -3.68% a year ago, while the net loss widened to 180.44 crore as depreciation and finance costs increased.
Key positives
- Six-month operating cash flow remained positive at 123.23 crore despite a reported six-month net loss of 286.79 crore.
- Revenue from operations remained broadly stable YoY at 1,511.04 crore despite operating margin pressure.
Key concerns
- Operating margin fell to -9.75%, down 607bps YoY and 491bps QoQ, reversing the margin improvement recorded in Q4FY26 and Q1FY27.
- Net loss widened to 180.44 crore from 110.66 crore a year ago and 106.35 crore in the previous quarter.
- Employee costs increased 9.6% YoY while revenue declined 0.4%, raising employee-cost intensity to 15.3% of revenue.
- Depreciation increased 7.3% YoY to 281.67 crore even as PPE and CWIP declined, creating an earnings-quality and asset-utilisation concern.
- Inventory increased to 2,123.58 crore from 1,989.04 crore at March 31, 2026, while six-month operating cash flow declined 26.9% YoY.
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