Balaji Amines Q2 FY27 Results (NSE: BALAMINES)
Signal: Margin expansion
The read
The trajectory remains a sharp earnings recovery: consolidated revenue grew 37.3% YoY and owner PAT 94.7%, with EBITDA margin at 21.7% versus 17.6% YoY; however, this is the first margin setback after five straight quarters of expansion because gross margin compressed 231bps as raw-material intensity rose to 54.9%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹467.6 Cr | 37.3% | 2.6% |
| EBIT | ₹89.3 Cr | 73.0% | |
| Net profit | ₹67.27 Cr | 94.7% | |
| EPS | ₹20.76 | 94.6% | |
| EBIT margin | 21.7% |
P&L walk
Revenue accelerated to ₹46,759.93 lakh, +37.3% YoY and +2.6% QoQ, while gross margin fell to 43.3% from 45.7% as raw-material intensity rose to 54.9%; EBITDA margin nevertheless expanded to 21.7% from 17.6%, lifting owner PAT to ₹6,727.05 lakh, +94.7%.
Segments
Amines & Speciality Chemicals drove the group with ₹46,420.26 lakh revenue and ₹8,925.94 lakh result, while its result rose 76.6% YoY; the Hotel Division slipped to ₹48.86 lakh result from ₹92.63 lakh and consolidated owner PAT of ₹6,727.05 lakh remained below standalone PAT of ₹6,872.97 lakh, indicating subsidiary drag.
Key positives
- Consolidated revenue reached ₹46,759.93 lakh, +37.3% YoY, accelerating from ₹34,055.21 lakh.
- Amines & Speciality Chemicals generated ₹8,925.94 lakh segment result, +76.6% YoY, and remained the dominant earnings engine.
- EBITDA margin expanded to 21.7% from 17.6% YoY as employee benefits and other expenses grew only 2.4% combined versus 37.3% revenue growth.
- Standalone gross margin expanded 194bps to 44.9%, while standalone EBITDA margin rose 648bps to 22.7%.
- Operating cash flow improved to ₹5,446.30 lakh from ₹2,220.51 lakh in H1FY26.
Key concerns
- Consolidated gross margin compressed 231bps to 43.3% as raw-material consumption increased to 54.9% of revenue from 51.4%, indicating cost absorption; the filing does not disclose the driver.
- Hotel Division result fell 47.2% YoY to ₹48.86 lakh on revenue of ₹716.74 lakh, and consolidated owner PAT of ₹6,727.05 lakh was below standalone PAT of ₹6,872.97 lakh.
- Trade receivables increased to ₹38,880.12 lakh from ₹34,585.86 lakh and inventories to ₹28,182.01 lakh from ₹24,711.71 lakh.
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