Crompton Gr. Con Q2 FY27 Results (NSE: CROMPTON)
Signal: Margin expansion
The read
The trajectory improved on revenue, with consolidated growth accelerating to +18.1% YoY from +11.9% in Q1FY27 and PAT up 64.9% to ₹124.39 crore, but the recovery is not yet fully clean: estimated EBITDA margin was 9.0%, down 100bps QoQ, gross margin compressed 180bps YoY, and H1 operating cash flow was negative ₹237.10 crore as inventory rose to ₹1,069.63 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,263.29 Cr | 18.1% | 1.3% |
| EBIT | ₹176.62 Cr | 44.2% | |
| Net profit | ₹124.39 Cr | 64.9% | |
| EPS | ₹1.85 | 66.7% | |
| EBIT margin | 9.0% |
P&L walk
Revenue accelerated to ₹2,263.29 crore, +18.1% YoY and +1.3% QoQ, while estimated EBITDA margin improved to 9.0% YoY but fell 100bps sequentially; PAT rose 64.9% to ₹124.39 crore aided by the absence of the ₹20.36 crore year-ago exceptional charge.
Segments
Electric Consumer Durables drove the group with ₹1,634.49 crore revenue, +19.4% YoY, and ₹189.48 crore segment result, +30.7% YoY; Butterfly Products was the sequential momentum pocket, with revenue up 55.9% QoQ to ₹330.51 crore and result up 174.6% QoQ to ₹24.58 crore.
Key positives
- Consolidated revenue reached ₹2,263.29 crore, +18.1% YoY, accelerating from Q1FY27's +11.9% YoY.
- Estimated EBITDA increased 39.5% YoY to ₹204.63 crore versus revenue growth of 18.1%; employee benefits expense rose only 12.8% YoY.
- Electric Consumer Durables segment result rose 30.7% YoY to ₹189.48 crore, while Butterfly Products result rose 11.4% YoY to ₹24.58 crore.
- Finance costs declined 16.7% YoY to ₹9.69 crore, and EPS rose 66.7% to ₹1.85 in line with PAT.
Key concerns
- Gross margin compressed 180bps YoY to 29.8%; the filing does not disclose whether pricing, input costs or mix caused the deterioration.
- H1 operating cash flow turned negative at ₹237.10 crore versus ₹55.02 crore inflow a year ago, while inventory rose 43.7% to ₹1,069.63 crore from FY26-end.
- Estimated EBITDA margin declined 100bps sequentially to 9.0% despite 1.3% QoQ revenue growth.
- Standalone PAT of ₹110.04 crore was materially below consolidated PAT of ₹124.39 crore, leaving earnings increasingly dependent on subsidiary contribution.
Research and educational content only. Not investment advice.