Control Print Q2 FY27 Results (NSE: CONTROLPR)
Signal: Margin pressure
The read
The trajectory improved sequentially but remains earnings-challenged: consolidated EBITDA margin recovered to 21.1% from 16.8% in Q1FY27, yet gross margin compressed 446bps YoY to 56.1%, finance costs rose 130.0%, and overseas subsidiaries generated a ₹633.13 lakh loss that drove PAT down 29.4% despite 28.8% revenue growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹144.22 Cr | +28.8% | +24.8% |
| EBIT | ₹25.54 Cr | +14.7% | |
| Net profit | ₹13.13 Cr | -29.4% | |
| EPS | ₹8.21 | -29.3% | |
| EBIT margin | 21.1% |
P&L walk
Consolidated revenue increased 28.8% YoY to ₹14422.39 lakh, but gross margin fell 446bps to 56.1%; EBITDA margin recovered sequentially to 21.1%, while ₹633.13 lakh of overseas subsidiary losses and higher finance costs pulled PAT down 29.4% to ₹1312.79 lakh.
Segments
The group is materially dragged by overseas subsidiaries: foreign subsidiaries contributed ₹944.96 lakh of revenue but reported a ₹633.13 lakh loss, leaving consolidated PAT at ₹1312.79 lakh versus standalone PAT of ₹1863.84 lakh.
Key positives
- Consolidated revenue rose 28.8% YoY to ₹14422.39 lakh and 24.8% QoQ, reversing the recent Q1FY27 growth slowdown of 3.8% YoY.
- Consolidated EBITDA margin recovered 430bps QoQ to 21.1% from 16.8%, while depreciation rose only 4.2% YoY to ₹484.39 lakh.
- Standalone PAT of ₹1863.84 lakh was 41.9% above consolidated PAT of ₹1312.79 lakh, indicating the core parent business remains materially stronger than the overseas group operations.
Key concerns
- Gross margin compressed 446bps YoY to 56.1% as raw material and stock-in-trade costs rose to 43.8% of revenue from 39.4%; revenue grew but the company absorbed the cost pressure.
- EBITDA grew only 8.3% YoY to ₹3038.07 lakh versus 28.8% revenue growth, and EBITDA margin remained 200bps below the year-ago 23.2%.
- Finance costs rose 130.0% YoY to ₹146.32 lakh, while consolidated PAT fell 29.4% to ₹1312.79 lakh despite strong revenue growth.
- Operating cash flow fell to ₹2491.55 lakh in H1FY27 from ₹4961.65 lakh in the comparable cash-flow statement as inventories and receivables increased.
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