Alok Industries Q2 FY27 Results (NSE: ALOKINDS)
Signal: Loss widened
The read
The key inflection is a sequential loss of operating momentum: revenue rose 8.5% QoQ to ₹1,077.76 Cr, but EBITDA was only ₹11.08 Cr versus ₹59.57 Cr in Q1, while materials and power costs increased 16.0% and 32.9% QoQ respectively; the ₹35.73 Cr exceptional loss then took PAT to ₹208.42 Cr negative.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,077.76 Cr | +14.5% | +8.5% |
| Net profit | ₹-208.42 Cr | -28.4% | |
| EPS | ₹-0.42 | -27.3% | |
| EBIT margin | 1.0% |
P&L walk
Revenue increased to ₹1,077.76 Cr, +14.5% YoY and +8.5% QoQ, but materials and power costs rose faster than sales; EBITDA was only ₹11.08 Cr and the ₹35.73 Cr exceptional loss pushed PAT to a ₹208.42 Cr loss.
Key positives
- Consolidated revenue increased 14.5% YoY to ₹1,077.76 Cr and 8.5% QoQ, extending the recovery from ₹941.09 Cr in the year-ago quarter.
- H1 operating cash flow was positive at ₹213.08 Cr despite a reported net loss of ₹346.67 Cr, supported by depreciation and working-capital movements.
- Finance costs declined 3.1% YoY to ₹152.49 Cr, and H1 borrowings were reduced by approximately ₹100.74 Cr from March 31, 2026.
- Standalone revenue grew 15.0% YoY to ₹1,036.03 Cr and standalone loss narrowed 28.0% YoY to ₹145.37 Cr.
Key concerns
- Consolidated EBITDA of ₹11.08 Cr represented only a 1.0% margin despite 14.5% revenue growth, and was materially below the ₹59.57 Cr reported in Q1.
- Materials consumed plus purchases and inventory changes were ₹545.83 Cr, or 50.6% of consolidated revenue, while power and fuel rose 30.9% YoY to ₹230.22 Cr; the company absorbed substantial cost pressure without disclosing the mitigation.
- Finance costs of ₹152.49 Cr were nearly 14 times quarterly EBITDA of ₹11.08 Cr, leaving the business structurally exposed to its high debt load.
- Consolidated loss of ₹208.42 Cr was materially worse than standalone loss of ₹145.37 Cr, reflecting losses and exceptional impacts in subsidiaries and joint ventures.
Research and educational content only. Not investment advice.