Apcotex Industri Q2 FY27 Results (NSE: APCOTEXIND)
Signal: Steady quarter
The read
The trajectory remains growth-positive but the Q2 inflection is margin-led caution: revenue grew 48.2% YoY and H1 revenue 43.8%, yet gross margin fell 372bps YoY to 26.95%, leaving PAT growth at 37.7% below sales growth; H1 PAT remains up 155.9% because the prior-year base was depressed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹498.92 Cr | +48.2% | -5.1% |
| Net profit | ₹34.84 Cr | +37.7% | |
| EPS | ₹6.72 | +37.7% |
P&L walk
Revenue rose 48.2% YoY to ₹49,892.46 lakh, but gross margin fell 372bps to 26.95% and PAT growth at 37.7% lagged sales as the company absorbed a weaker gross-profit conversion; H1 revenue still grew 43.8% and H1 PAT 155.9%.
Key positives
- Revenue reached ₹49,892.46 lakh, up 48.2% YoY, and H1 revenue reached ₹102455.81 lakh, up 43.8% YoY.
- Employee costs rose 14.3% YoY to ₹2,356.74 lakh, well below revenue growth, reducing employee-cost intensity to 4.72% from 6.12%.
- Finance costs declined 13.8% YoY to ₹255.27 lakh, while depreciation rose only 6.5% YoY to ₹1,279.57 lakh despite PPE plus CWIP increasing 11.1%.
- H1 PAT rose 155.9% YoY to ₹11377.58 lakh and H1 EPS increased to ₹21.95 from ₹8.57.
Key concerns
- Gross margin fell 372bps YoY to 26.95% and 852bps QoQ, despite raw material cost declining to 68.31% of revenue from 71.22% YoY; the filing does not disclose the driver.
- PAT growth of 37.7% lagged revenue growth of 48.2%, indicating weaker profit conversion in Q2FY27.
- Operating cash flow fell to ₹2,788.17 lakh in H1FY27 from ₹10,727.92 lakh, a 74.0% YoY decline, while inventory and trade receivables stood at ₹17,218.07 lakh and ₹32,144.78 lakh at September 2026.
- Revenue declined 5.1% QoQ to ₹49,892.46 lakh after ₹52,563.35 lakh in Q1FY27, while EPS fell 55.9% QoQ to ₹6.72.
Research and educational content only. Not investment advice.