BirlaNu Ltd Q2 FY27 Results (NSE: BIRLANU)
Signal: Loss widened
The read
The quarter shows a real operating inflection versus the prior-year loss base: revenue grew 15.7% YoY, EBITDA margin expanded 432bps to 6.8%, gross margin rose 180bps and other expenses grew only 2.9%. However, the recovery is not yet durable because margin fell 504bps sequentially and a 9000 lakh exceptional provision converted 848 lakh pre-exceptional PBT into an 8382 lakh PAT loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹580.77 Cr | +15.7% | -29.5% |
| EBIT | ₹16.59 Cr | +276.1% | |
| Net profit | ₹-83.82 Cr | -583.3% | |
| EPS | ₹-111.15 | -583.3% | |
| EBIT margin | 6.8% |
P&L walk
Standalone operating profit before exceptional items was 848 lakh on revenue of 58077 lakh, but a 9000 lakh exceptional provision turned PBT into an 8152 lakh loss and PAT into an 8382 lakh loss; the operating margin recovery was sequentially weaker despite gross-margin expansion.
Key positives
- Revenue increased 15.7% YoY to 58077 lakh, while other expenses rose only 2.9% to 15388 lakh.
- EBITDA margin expanded 432bps YoY to 6.8%, and gross margin improved 180bps to 42.1%.
- H1 operating cash flow improved 142.7% YoY to 11923 lakh despite H1 PAT of -3413 lakh.
- PPE plus CWIP increased to 83086 lakh from 82250 lakh while depreciation rose only 4.6% YoY to 2270 lakh, a clean depreciation-to-capex signal.
Key concerns
- PAT was -8382 lakh despite 848 lakh pre-exceptional PBT because of a 9000 lakh exceptional provision for diminution in the investment in BirlaNu International GmbH.
- EBITDA margin declined 504bps QoQ from the standalone Q1 level, leaving the recovery uneven.
- Finance costs increased 12.3% YoY to 811 lakh, limiting conversion of operating profit into PBT.
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