Bharat Wire Q2 FY27 Results (NSE: BHARATWIRE)
Signal: Margin pressure
The read
The operating inflection is incomplete: Q2FY27 revenue grew 10.0% YoY after Q1FY27's 7.9% decline, but EBITDA margin fell to 18.5% from 23.8% YoY and 21.5% sequentially as raw-material cost rose to 53.1% of revenue; the key thesis variable is whether material intensity normalises while the large ₹25,713.97 lakh CWIP converts into productive PPE.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹181 Cr | +10.0% | +34.7% |
| EBIT | ₹26.77 Cr | -19.5% | |
| Net profit | ₹17.44 Cr | -21.2% | |
| EPS | ₹2.54 | +5.4% | |
| EBIT margin | 18.5% |
P&L walk
Revenue recovered 10.0% YoY to ₹18,100.01 lakh, but raw-material intensity rose 224bps to 53.1%, compressing gross margin by 224bps and EBITDA margin by 530bps to 18.5%; lower finance cost did not prevent PAT from falling 21.2% to ₹1,744.49 lakh.
Key positives
- Revenue recovered to ₹18,100.01 lakh, up 10.0% YoY and 34.7% QoQ, reversing the prior quarter's 7.9% YoY decline.
- Finance cost declined 7.8% YoY to ₹281.20 lakh, providing some protection to pre-tax earnings.
- Operating cash flow remained positive at ₹3,627.05 lakh in H1FY27 despite a 21.3% YoY decline in H1 PAT.
Key concerns
- Gross margin compressed 224bps YoY as raw-material cost increased to 53.1% of revenue from 50.8%; the filing does not identify a mitigation or pricing response.
- EBITDA margin fell 530bps YoY to 18.5%, with EBITDA declining approximately 14.5% despite 10.0% revenue growth.
- H1FY27 PAT declined 21.3% to ₹2,967.40 lakh even as H1 revenue grew 1.7% to ₹31,139.52 lakh.
- CWIP increased to ₹25,713.97 lakh from ₹9.00 lakh while PPE declined to ₹52,599.00 lakh, leaving execution and commissioning risk around the capex cycle.
Research and educational content only. Not investment advice.