CCL Products Q2 FY27 Results (NSE: CCL)
Signal: Growth decelerated
The read
The quarter marks a margin recovery after Q1FY27: consolidated gross margin expanded 532bps YoY to 37.9% and EBITDA margin rose to 18.0%, lifting PAT 29.0% to 13010.97 lakh, but revenue growth decelerated to 7.5% from 13.6% in Q1 and EPS growth lagged PAT at 21.6%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,210.76 Cr | +7.5% | +0.9% |
| EBIT | ₹176.84 Cr | +10.7% | |
| Net profit | ₹130.11 Cr | +29.0% | |
| EPS | ₹9.17 | +22.1% | |
| EBIT margin | 18.0% |
P&L walk
Revenue rose 7.5% YoY to 121076.24 lakh, gross margin expanded 532bps to 37.9% as raw-material intensity fell to 63.7%, EBITDA rose 9.4% to 21731.61 lakh, finance costs fell 20.4% to 2598.08 lakh and PAT rose 29.0% to 13010.97 lakh.
Segments
The group is materially stronger than the parent: consolidated revenue was 121076.24 lakh and PAT 13010.97 lakh versus standalone revenue of 68505.45 lakh and PAT of 4306.19 lakh; the filing identifies one consolidated reportable segment, so the earnings uplift sits in subsidiaries rather than a disclosed segment split.
Key positives
- Consolidated revenue reached 121076.24 lakh, up 7.5% YoY, while gross margin expanded 532bps to 37.9% as raw-material intensity fell to 63.7% from 65.4%.
- PAT rose 29.0% to 13010.97 lakh, supported by finance costs falling 20.4% to 2598.08 lakh and consolidated other income remaining modest at 523.01 lakh.
- H1 operating cash flow was 43876.97 lakh and net debt declined 30.9% to 74257.01 lakh from 107423.20 lakh at March 2026.
- Consolidated EBITDA margin recovered to 18.0% from 16.4% sequentially, although EBITDA growth of 9.4% remained only 1.9 percentage points ahead of revenue growth.
Key concerns
- Revenue growth decelerated to 7.5% YoY from 13.6% in Q1FY27 and sequential growth was only 0.9%, weakening the volume-growth trajectory.
- Standalone PAT fell 61.6% YoY to 4306.19 lakh because other income dropped from 7295.34 lakh to 574.43 lakh, showing that parent-level earnings remain dependent on subsidiary income flows.
- EPS growth of 21.6% lagged consolidated PAT growth of 29.0%, and basic EPS was ₹9.17 versus ₹7.51 a year ago.
- Employee and other operating expenses rose 11.6% YoY to 24713.64 lakh, faster than consolidated revenue growth.
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