Aditya Vision Q2 FY27 Results (NSE: AVL)
Signal: Margin pressure
The read
The trajectory remains growth-positive but margin momentum has not carried through the seasonal Q2 dip: revenue grew 28.0% YoY and H1 revenue grew 27.3% to ₹1,779 crore, while Q2 EBITDA margin contracted 105bps YoY to 7.7% as employee and operating expenses rose 50.0% to ₹51 crore; H1 PAT still increased 41.2% to ₹96 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹586 Cr | +28.0% | -50.9% |
| EBIT | ₹32 Cr | +28.0% | |
| Net profit | ₹18 Cr | +38.5% | |
| EPS | ₹1.41 | +42.4% | |
| EBIT margin | 7.7% |
P&L walk
Q2 revenue was ₹586 crore, up 28.0% YoY but down 50.9% QoQ due to the company-stated seasonal nature of sales; gross margin expanded 131bps YoY to 16.4%, but EBITDA margin fell 105bps YoY to 7.7% as operating expenses rose faster than revenue, while PAT increased 38.5% to ₹18 crore.
Key positives
- Q2 revenue increased 28.0% YoY to ₹586 crore and H1 revenue increased 27.3% YoY to ₹1,779 crore.
- Q2 PAT rose 38.5% YoY to ₹18 crore and H1 PAT rose 41.2% to ₹96 crore.
- Gross margin expanded 131bps YoY to 16.4%, while borrowings declined 11.5% from March 31, 2026 to ₹293 crore.
- Property, plant and equipment increased to ₹136 crore from ₹131 crore and capital work-in-progress increased to ₹7 crore from ₹6 crore, alongside a 30.0% H1 increase in depreciation.
Key concerns
- Q2 EBITDA margin declined 105bps YoY to 7.7% despite 28.0% revenue growth, with employee and operating expenses increasing 50.0% YoY to ₹51 crore.
- Q2 revenue fell 50.9% QoQ to ₹586 crore and PAT fell 76.6% QoQ to ₹18 crore, highlighting the seasonal earnings swing stated by the company.
- H1 cash flow from operations declined 13.2% YoY to ₹118 crore despite H1 PAT growth of 41.2% to ₹96 crore, while inventory stood at ₹865 crore.
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