Indef Manufactur Q2 FY27 Results (NSE: BAJAJINDEF)
Signal: Growth reaccelerated
The read
The trajectory remains margin- and earnings-fragile: consolidated revenue recovered 50.1% QoQ and grew 4.9% YoY to ₹5,171.12 lakh, but gross margin contracted 167bps YoY to 46.4% and attributable PAT fell 51.9% to ₹301.05 lakh; the sequential revenue rebound has not yet translated into a durable profit recovery, while H1 operating cash flow was negative ₹774.86 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹51.71 Cr | +4.9% | +50.1% |
| Net profit | ₹3.01 Cr | -51.9% | |
| EPS | ₹0.94 | -52.0% | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue increased to ₹5,171.12 lakh, +4.9% YoY and +50.1% QoQ, but gross margin compressed 167bps YoY to 46.4% as materials consumed rose to 56.1% of revenue; attributable PAT fell 51.9% to ₹301.05 lakh, with the year-ago quarter benefiting from ₹269.73 lakh of other income versus a current-quarter loss of ₹6.51 lakh.
Segments
The company reports a single primary segment, Material Handling Equipments; the key divergence is at the group level, where consolidated attributable PAT of ₹301.05 lakh was 21.7% below standalone PAT of ₹384.54 lakh despite consolidated revenue of ₹5,171.12 lakh exceeding standalone revenue of ₹4,816.48 lakh.
Key positives
- Consolidated revenue recovered to ₹5,171.12 lakh, +50.1% QoQ, after ₹3,446.31 lakh in Q1FY27.
- Finance costs remained contained at ₹11.03 lakh, down 1.5% YoY, against consolidated revenue growth of 4.9%.
- EPS declined 52.0% YoY to ₹0.94, broadly tracking the 51.9% fall in attributable PAT, with no material dilution signal.
- Consolidated PPE declined 1.5% while depreciation declined 1.2% YoY, providing no indication of a depreciation spike from newly commissioned assets.
Key concerns
- Gross margin compressed 167bps YoY to approximately 46.4% as materials consumed increased to 56.1% of revenue from 53.7%; the filing does not identify the driver.
- Attributable PAT fell 51.9% YoY to ₹301.05 lakh despite 4.9% revenue growth, showing weak conversion of revenue into earnings.
- H1 operating cash flow was negative ₹774.86 lakh versus positive ₹1,213.16 lakh in H1FY26, while inventory rose to ₹3,754.51 lakh from ₹3,151.70 lakh.
- Employee costs rose 10.2% YoY to ₹791.56 lakh, faster than consolidated revenue growth, increasing employee-cost intensity to 15.3% of revenue.
- Consolidated attributable PAT of ₹301.05 lakh was materially below standalone PAT of ₹384.54 lakh, indicating a drag from subsidiaries and consolidation adjustments.
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