Arrow Greentech H1FY27 Results (NSE: ARROWGREEN)
Signal: Margin expansion
The read
H1FY27 confirms the Q1FY27 rebound: revenue reached ₹1,733 million, up 68.8% YoY, while EBITDA margin expanded to 40.0% from 34.1% and PAT nearly doubled to ₹525 million; the key thesis variable is whether High-Tech growth and the 586bps margin expansion persist into H2.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹173.3 Cr | 68.8% | N/A |
| Net profit | ₹52.5 Cr | 97.1% | |
| EBIT margin | 40.0% |
P&L walk
H1FY27 revenue increased 68.8% to ₹1,733 million, led by High-Tech segment growth of 87.8%; EBITDA grew faster at 97.8% to ₹692 million as margin expanded 586bps to 40.0%, and PAT rose 97.1% to ₹525 million.
Segments
The High-Tech Product segment was the disclosed growth engine, with H1 revenue rising 87.8% to ₹1,563 million versus consolidated revenue growth of 68.8% to ₹1,733 million.
Key positives
- High-Tech Product revenue grew 87.8% to ₹1,563 million, outpacing consolidated revenue growth of 68.8% to ₹1,733 million.
- EBITDA grew 97.8% to ₹692 million versus revenue growth of 68.8%, while EBITDA margin expanded 586bps to 40.0%.
- PAT increased 97.1% to ₹525 million and PAT margin expanded 451bps to 29.5%.
- Four patents were granted during H1FY27, supporting the company's stated strategy of expanding technology-led products across international markets.
Key concerns
- Sequential momentum softened in Q2FY27: revenue declined 2.7% from ₹878 million in Q1FY27 to ₹855 million, EBITDA declined 7.3% from ₹359 million to ₹333 million, and PAT declined 8.5% from ₹274 million to ₹251 million.
- The filing gives no quantified H2 revenue, margin, capacity, order-book, or cash-flow guidance, leaving the durability of the 40.0% H1 EBITDA margin untested.
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