Capacit'e Infra. Q2 FY27 Results (NSE: CAPACITE)
Signal: Margin pressure
The read
The execution inflection is visible in revenue, which rose 19.16% YoY to 77003.44 lakh after 6.8% growth in Q1FY27, but the trajectory is not yet clean: EBITDA margin fell 139bps YoY to 16.10%, depreciation rose 43.98%, and PAT declined 6.84% to 4756.36 lakh. H1 operating cash flow also fell 25.12% to 7333.07 lakh while contract assets and receivables remained elevated.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹770.03 Cr | +19.16% | +22.60% |
| EBIT | ₹89.41 Cr | +34.15% | |
| Net profit | ₹47.56 Cr | -6.84% | |
| EBIT margin | 16.10% |
P&L walk
Revenue accelerated to 77003.44 lakh, +19.16% YoY and +22.60% QoQ, led by stronger execution including outside-India revenue growth of 73.80%; EBITDA margin nevertheless contracted 139bps YoY to 16.10%, while PAT fell 6.84% YoY to 4756.36 lakh because depreciation, tax and other below-operating items offset operating growth.
Segments
The group reports a single EPC operating segment, but overseas execution is the momentum pocket: outside-India revenue rose 73.80% YoY to 10013.71 lakh versus 13.99% growth in India revenue.
Key positives
- Revenue increased 19.16% YoY to 77003.44 lakh and 22.60% QoQ, an acceleration from Q1FY27's 6.8% YoY growth.
- Outside-India revenue rose 73.80% YoY to 10013.71 lakh, materially faster than India revenue growth of 13.99%.
- Employee costs grew 16.43% YoY to 5471.23 lakh, slower than revenue growth of 19.16%.
- H1FY27 capex including CWIP increased 88.75% YoY to 12496.24 lakh, supporting the 43.98% YoY rise in depreciation.
Key concerns
- EBITDA margin contracted 139bps YoY to 16.10% as direct construction and material costs rose to 72.09% of revenue from 69.12%.
- PAT fell 6.84% YoY to 4756.36 lakh despite 19.16% revenue growth and 9.71% derived EBITDA growth.
- H1 operating cash flow fell 25.12% YoY to 7333.07 lakh, while contract assets stood at 145866.12 lakh and trade receivables at 118279.50 lakh.
- Depreciation rose 43.98% YoY to 3458.99 lakh, increasing the conversion gap between operating profit and PAT.
Research and educational content only. Not investment advice.