Emmvee Photovol. Q2 FY27 Results (NSE: EMMVEE)
Signal: Growth decelerated
The read
The trajectory remains expansionary: Q2FY27 revenue grew 39% YoY to ₹15,764 million and the 35% EBITDA margin held, but gross margin contracted to 42% from 47%; the next thesis inflection is execution of the 6 GW expansion, with the module line targeted for December 2026 and the cell line for March 2027.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,576.4 Cr | 39% | 1% |
| Net profit | ₹382 Cr | 61% | |
| EBIT margin | 35% |
P&L walk
Revenue increased 39% YoY to ₹15,764 million and EBITDA increased 39% to ₹5,569 million, but gross margin fell to 42% from 47%; lower finance costs supported 61% PAT growth to ₹3,820 million.
Key positives
- Revenue grew 39% YoY to ₹15,764 million while EBITDA grew 39% to ₹5,569 million and EBITDA margin held at 35%.
- Solar cell production rose 61% YoY to 513 MW and cell utilisation reached 89%, versus 44% module utilisation, leaving module capacity headroom.
- The order book reached 10.4 GW after approximately 1.5 GW of Q2 order inflows, providing revenue visibility.
- Finance costs fell 82.8% YoY to ₹95 million, helping PAT grow 61% YoY to ₹3,820 million.
- Operating cash generation was ₹409.9 million in H1FY27 versus ₹120.7 million in H1FY26, while net debt to equity was 0.12x.
Key concerns
- Gross margin compressed 5pp YoY to 42% and 2pp QoQ, despite revenue growth of 39% YoY; the filing does not disclose the specific driver.
- Module utilisation was 44%, below cell utilisation of 89%, so the near-term return on the expanded module footprint depends on progressive ramp-up.
- The planned 6 GW integrated expansion carries approximately ₹5,500 crore of capex and approximately ₹3,300 crore of debt, increasing execution and funding dependence as capacity scales.
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