Bhagiradha Chem. Q2 FY27 Results (NSE: BHAGCHEM)

3 Nov 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

This is the fourth consecutive quarter of YoY margin expansion, with consolidated EBITDA margin reaching 13.66% from 11.08%, but the trajectory is becoming more capital- and cash-intensive: depreciation rose 127.8%, finance costs 88.1%, net debt 112.9% and H1 operating cash flow was negative ₹9336.39 lakh, leaving PAT down 1.8% despite 21.3% revenue growth.

P&L walk

Revenue rose 21.3% YoY, EBITDA margin expanded to 13.66% from 11.08%, but PAT declined 1.8% as depreciation increased 127.8% and finance costs increased 88.1%.

Segments

The group reports only one segment, Crop Protection Chemicals; the consolidated result materially outperformed standalone, with consolidated revenue growth of 21.3% and EBITDA margin of 13.66% versus standalone growth of 9.1% and margin of 10.77%, indicating the subsidiary lifted group performance.

Key positives

• Consolidated revenue increased 21.3% YoY to ₹16991.59 lakh, while H1 revenue grew 38.3% YoY to ₹36493.48 lakh.
• Consolidated EBITDA margin expanded 258bps YoY to 13.66%, marking the fourth consecutive quarter of YoY margin expansion.
• Consolidated EBITDA increased 49.6% YoY to ₹2321.93 lakh, supported by a 631bps gross-margin expansion to 41.10%.

Key concerns

• PAT declined 1.8% YoY to ₹540.79 lakh despite 21.3% revenue growth because depreciation rose 127.8% and finance costs rose 88.1%.
• Raw-material cost increased to 86.61% of revenue from 61.71% YoY; the gross-margin expansion was accompanied by a ₹4848.47 lakh inventory decrease and its sustainability is not established.
• H1 operating cash flow was negative ₹9336.39 lakh versus negative ₹584.65 lakh, while inventories rose 141.3% and trade receivables rose 30.9% YoY.
• Net debt increased 112.9% YoY to ₹36571.96 lakh, increasing balance-sheet sensitivity as the group expands its asset base.

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