Cemindia Project Q2 FY27 Results (NSE: CEMPRO)
Signal: Growth reaccelerated
The read
The trajectory is volume or execution-led revenue acceleration to +25.2% YoY, but this is a margin-quality test: materials grew 33.1% and gross margin contracted 207bps, while negative H1 operating cash flow of ₹116.65 crore highlights working-capital absorption despite 21.3% PAT growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,748.65 Cr | +25.2% | +1.0% |
| Net profit | ₹130.59 Cr | +21.3% | |
| EPS | ₹7.6 | +21.2% | |
| EBIT margin | 10.2% |
P&L walk
Revenue accelerated to ₹2,748.65 crore, +25.2% YoY and +1.0% QoQ, but materials grew 33.1% and compressed gross margin to 65.18%; derived EBITDA margin was 10.2%, while PAT rose 21.3% to ₹130.59 crore.
Segments
The group is single-segment Engineering and Construction; consolidation lifted Q2 revenue to ₹2,748.65 crore versus standalone ₹2,582.65 crore and PAT to ₹130.59 crore versus ₹127.57 crore, with the associate contributing a ₹0.26 crore loss.
Key positives
- Consolidated revenue reached ₹2,748.65 crore, +25.2% YoY and +1.0% QoQ, accelerating from the +2.0% YoY growth recorded in Q3FY26 and +5.6% in Q1FY27.
- Employee benefits plus other expenses grew 17.8% YoY, below revenue growth of 25.2%, providing partial operating-cost absorption despite the gross-margin headwind.
- Consolidated PAT rose 21.3% YoY to ₹130.59 crore and EPS rose 21.2% to ₹7.60, with the PAT-to-EPS cross-check clean.
- Property, plant and equipment increased to ₹1,170.84 crore and CWIP to ₹42.56 crore, indicating continued asset investment.
Key concerns
- Gross margin compressed 207bps YoY to 65.18% as raw materials rose to 34.82% of revenue from 32.76%; revenue grew but input costs grew 33.1%, indicating cost absorption rather than full pass-through.
- H1 standalone operating cash flow was negative ₹116.65 crore versus positive ₹296.46 crore a year earlier, with contract assets at ₹2,737.79 crore and trade receivables at ₹1,365.67 crore.
- Consolidated derived EBITDA margin fell to 10.17% from 10.69% YoY, so the 25.2% revenue increase did not translate into margin expansion.
- Finance costs rose 8.0% YoY to ₹57.69 crore and 15.4% QoQ, while standalone net debt moved from net cash of ₹72.16 crore at March 2026 to net debt of ₹369.83 crore at September 2026.
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