Asahi India Glas Q2 FY27 Results (NSE: ASAHIINDIA)
Signal: Margin expansion
The read
The trajectory remains strongly positive: Q2FY27 revenue grew 36.9% YoY and EBITDA grew 76.4%, producing a 500bps margin expansion to 22.1% and the fourth consecutive quarter of YoY margin expansion; however, the 120bps sequential margin decline shows automotive cost inflation and new-capacity ramp-up remain near-term constraints.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,591 Cr | 36.9% | 12.1% |
| EBIT | ₹271.1 Cr | 108.2% | |
| Net profit | ₹167.3 Cr | 187.5% | |
| EPS | ₹6.56 | 195.5% | |
| EBIT margin | 22.1% |
P&L walk
Total income increased 36.9% YoY to ₹1,591.0 Cr, while EBITDA grew 76.4% to ₹351.4 Cr and margin expanded 500bps to 22.1%; lower finance cost and operating profit growth drove PAT up 187.5% to ₹167.3 Cr.
Segments
Float Glass was the main incremental driver: revenue grew 58.4% YoY to ₹608.1 Cr and segment PBT rose 246.6% to ₹137.2 Cr, while Automotive Glass also grew 30.8% to ₹1,065.9 Cr and PBT rose 69.2% to ₹131.4 Cr; Others dragged with PBT down 91.2% to ₹0.6 Cr.
Key positives
- Revenue rose 36.9% YoY to ₹1,591.0 Cr, led by higher automotive volumes and Float Glass realization improvement from mix, full F2 capacity and operating efficiencies.
- EBITDA grew 76.4% YoY to ₹351.4 Cr versus revenue growth of 36.9%, a 39.5 percentage-point growth gap; employee costs grew 25.1%, depreciation 16.5% and finance cost declined 24.9%, supporting operating leverage and margin expansion of 500bps to 22.1%.
- Float Glass revenue grew 58.4% YoY to ₹608.1 Cr and segment PBT grew 246.6% to ₹137.2 Cr, making it the strongest disclosed growth engine.
- New Phase III tempered capacity at Patan and laminated capacity at Chennai were commissioned, while 12 new automotive models were stabilized during the quarter.
Key concerns
- Sequential EBITDA margin declined 120bps to 22.1% from 23.3%, with management citing inflation in logistics, manpower and consumables and the natural ramp-up of new capacity.
- COGS and energy costs remained elevated; gross margin was flat YoY at 56.3% despite revenue growth, indicating that margin expansion came primarily below gross profit rather than from input-cost relief.
- Others segment PBT fell 91.2% YoY to ₹0.6 Cr despite revenue growth of 29.8% to ₹244.3 Cr.
Research and educational content only. Not investment advice.