Bharat Bijlee Q2 FY27 Results (NSE: BBL)
Signal: Steady quarter
The read
The quarter marks a sharp volume or execution inflection versus Q1FY27: revenue growth accelerated to 55.5% YoY from 17.7% and PAT swung to 63.1% growth from a 29.6% decline, but gross margin compressed for the second consecutive reported quarter to 23.6% from 26.9% a year ago, making margin recovery the key thesis variable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹736.16 Cr | +55.5% | +34.5% |
| EBIT | ₹52.57 Cr | +77.5% | |
| Net profit | ₹46.04 Cr | +63.1% | |
| EPS | ₹40.73 | +63.1% | |
| EBIT margin | 8.0% |
P&L walk
Standalone-only Q2FY27 revenue rose 55.5% YoY to ₹736.16 crore and EBITDA increased 68.7% to ₹58.74 crore, but gross margin fell 332bps to 23.6%; PAT rose 63.1% to ₹46.04 crore with ₹15.98 crore of other income supporting the bottom line.
Segments
Power systems was the main accelerator, with revenue up 69.4% YoY to ₹440.11 crore and segment result up 29.3% to ₹49.18 crore; Industrial systems revenue grew 38.5% to ₹296.05 crore while its result more than doubled to ₹30.00 crore.
Key positives
- Revenue reached ₹736.16 crore, up 55.5% YoY and 34.5% QoQ, with Power systems revenue up 69.4% YoY to ₹440.11 crore.
- Derived EBITDA rose 68.7% YoY to ₹58.74 crore, ahead of revenue growth by 13.2 percentage points, while employee benefits plus other expenses grew 24.0% YoY.
- Both segments improved YoY profitability: Power systems result rose 29.3% to ₹49.18 crore and Industrial systems result rose 115.8% to ₹30.00 crore.
- H1 operating cash flow turned positive at ₹10.02 crore from negative ₹37.45 crore, despite continued investment in PPE and CWIP.
Key concerns
- Gross margin compressed 332bps YoY to 23.6% as material-related costs rose to 76.4% of revenue from 73.2%, with no driver disclosed in the filing.
- Finance costs increased 95.6% YoY to ₹7.55 crore, limiting the conversion of strong revenue growth into operating profit.
- Inventory rose to ₹719.17 crore from ₹474.29 crore at 31 March 2026, a ₹244.88 crore increase during H1, which absorbed operating cash.
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