Ellen.Indl.Gas Q2 FY27 Results (NSE: ELLEN)
Signal: Margin pressure
The read
The operating trajectory remains expansionary: Q2FY27 revenue grew 28.1% to ₹114.3 crore and the core gases business grew 27% to ₹112.1 crore as new capacity ramped, but EBITDA margin contracted 220bps to 35.6% and PAT fell 3.0% to ₹35.6 crore because the prior-year ₹4.5 crore deferred-tax credit did not repeat; the East India onsite plant's fuller contribution from Q3FY27 is the next operating inflection to watch.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹114.3 Cr | 28.1% | N/A |
| Net profit | ₹35.6 Cr | -3.0% | |
| EBIT margin | 35.6% |
P&L walk
Standalone revenue rose 28.1% to ₹114.3 crore as commissioned capacities increased contribution, while EBITDA grew 20.8% to ₹40.7 crore and margin fell 220bps to 35.6%; PAT declined 3.0% to ₹35.6 crore because Q2FY26 included a ₹4.5 crore deferred-tax credit.
Key positives
- Revenue grew 28.1% YoY to ₹114.3 crore, with core gases revenue up 27% to ₹112.1 crore as Kurnool and Uluberia II ramped and the East India onsite plant commenced operations.
- The company received a ₹480.7 crore turnkey order for a 1,200 TPD cryogenic ASU in Jharsuguda, to be executed over FY28 and FY29.
- Gas segment margin improved sequentially to 39% from 38% in Q1FY27, while installed capacity reached 915 TPD in bulk and 1,018 TPD onsite.
- Cash and equivalents of ₹424 crore support the planned ₹250 crore FY27 and ₹200 crore FY28 capacity-investment program.
Key concerns
- EBITDA margin declined 220bps YoY to 35.6% even as revenue grew 28.1%, with management specifically flagging freight and power costs.
- PAT declined 3.0% to ₹35.6 crore because the prior-year period included a ₹4.5 crore deferred-tax credit; reported profit therefore understates the 19.8% PBT growth.
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