Alkyl Amines Q2 FY27 Results (NSE: ALKYLAMINE)
Signal: Margin expansion
The read
The key inflection is operating conversion rather than demand: Q2 revenue grew 26.1% YoY, EBITDA grew 39.7% with margin expanding 217bps YoY to 22.1%, and PAT grew 51.8%; however, gross margin compressed 389bps as materials reached 53.1% of revenue, while the sequential margin fell 500bps from Q1FY27's 27.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹490.95 Cr | +26.1% | -7.0% |
| EBIT | ₹90.53 Cr | +52.3% | |
| Net profit | ₹65.17 Cr | +51.8% | |
| EPS | ₹12.74 | +51.7% | |
| EBIT margin | 22.1% |
P&L walk
Standalone Q2FY27 revenue rose 26.1% YoY, while EBITDA increased 39.7% and PAT increased 51.8%; margin expansion versus last year came from lower relative other expenses and depreciation, despite a 389bps gross-margin compression from higher material intensity.
Key positives
- Revenue from operations increased 26.1% YoY to ₹490.95 Cr despite a 7.0% sequential decline.
- EBITDA grew 39.7% YoY to ₹108.46 Cr versus revenue growth of 26.1%, with EBITDA margin expanding 217bps YoY to 22.1%.
- Other expenses grew only 4.1% YoY and depreciation declined 1.4% YoY, supporting operating conversion.
- PAT rose 51.8% YoY to ₹65.17 Cr and EPS rose 51.7% to ₹12.74, with no exceptional items.
Key concerns
- Gross margin compressed 389bps YoY to 46.9% as cost of materials increased to 53.1% of revenue from 49.2%; the filing does not disclose the driver or the extent of pass-through.
- EBITDA margin declined 500bps sequentially from 27.1% in Q1FY27 to 22.1% in Q2FY27.
- H1 operating cash flow of ₹48.25 Cr was below H1 PAT of ₹159.80 Cr, with inventories up ₹84.17 Cr and trade receivables up ₹77.45 Cr during the period.
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