Adroit Industries Q2 FY27 Results (NSE: ADROITIND)
Signal: Margin expansion
The read
The key inflection is a sharp consolidated margin recovery to 30.7%, up 978bps YoY and following the prior quarter's 30.96% margin, but the quality is mixed: standalone revenue fell 19.5% and operating cash flow was negative 186.49 million as receivables and inventory absorbed cash.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹42.67 Cr | +18.5% | +25.1% |
| EBIT | ₹11.97 Cr | +82.8% | |
| Net profit | ₹8.55 Cr | +71.8% | |
| EPS | ₹1.91 | +72.1% | |
| EBIT margin | 30.7% |
P&L walk
Consolidated revenue increased to 426.73 million, +18.5% YoY and +25.1% QoQ, while EBITDA rose to 130.73 million and PAT to 85.47 million; margin expansion was supported by the reported inventory-change benefit, whereas standalone operations contracted.
Segments
There is no reportable segment split, but the standalone-versus-consolidated gap is material: consolidated revenue grew 18.5% YoY to 426.73 million while standalone revenue fell 19.5% to 126.13 million, indicating subsidiaries drove group momentum.
Key positives
- Consolidated revenue reached 426.73 million, +18.5% YoY and +25.1% QoQ, accelerating from 341.14 million in Q1FY27.
- Consolidated EBITDA increased 74.0% YoY to 130.73 million versus revenue growth of 18.5%, while EBITDA margin expanded 978bps to 30.7%; employee costs declined 7.0% YoY.
- PAT rose 71.8% YoY to 85.47 million and EPS rose 72.1% to ₹1.91, with EPS tracking PAT.
- IPO proceeds lifted cash and cash equivalents to 1301.86 million against borrowings of 96.32 million, creating net cash of 1205.54 million.
Key concerns
- Standalone revenue declined 19.5% YoY to 126.13 million and standalone PAT declined 6.0% to 8.50 million, showing that the group result is subsidiary-led.
- Operating cash flow was negative 186.49 million in H1FY27 despite 201.30 million of consolidated profit before tax, with 186.26 million absorbed by receivables and 51.45 million by inventories.
- Gross margin expansion to 69.7% from 34.7% YoY was unusually large and the filing does not disclose the driver; reported inventory changes materially affected the cost base.
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