Everest Inds. Q2 FY27 Results (NSE: EVERESTIND)
Signal: Loss reversed
The read
The operating inflection is real but uneven: Q2FY27 revenue grew 4.5% YoY while gross margin expanded 621bps to 48.58% and EBITDA margin recovered to 9.19%, yet QoQ revenue fell 28.0% and Steel buildings revenue declined 21.1% YoY. PAT of ₹821.16 lakh was not inflated by exceptional income, unlike the prior quarter's ₹9,125.42 lakh exceptional gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹301.51 Cr | +4.5% | -28.0% |
| EBIT | ₹19.72 Cr | +318.8% | |
| Net profit | ₹8.21 Cr | +168.1% | |
| EPS | ₹5.18 | +168.1% | |
| EBIT margin | 9.19% |
P&L walk
Standalone revenue increased 4.5% YoY but fell 28.0% QoQ; lower material intensity lifted gross margin to 48.58%, enabling EBITDA margin recovery to 9.19%, while PAT of ₹821.16 lakh was operational rather than exceptional-item driven.
Segments
Building products drove the quarter with ₹24,203.80 lakh revenue and ₹3,013.99 lakh segment result, while Steel buildings generated ₹5,947.32 lakh revenue and only ₹133.34 lakh result; Building products revenue grew 13.5% YoY as Steel buildings revenue declined 21.1%.
Key positives
- Gross margin expanded 621bps YoY to 48.58% as raw materials and purchases fell to 55.13% of revenue from 57.76%.
- EBITDA margin recovered to 9.19% from a negative year-ago base, with employee benefits expense down 9.3% YoY and other expenses broadly flat at -0.2% YoY.
- PAT turned positive at ₹821.16 lakh from a ₹1,205.14 lakh loss YoY without any exceptional item in the quarter.
- Operating cash flow reached ₹9,616.61 lakh in H1FY27 versus ₹1,306.58 lakh in H1FY26.
Key concerns
- Revenue declined 28.0% QoQ to ₹30,151.12 lakh, indicating that the margin recovery has not yet been accompanied by sequential demand momentum.
- Steel buildings revenue fell 21.1% YoY to ₹5,947.32 lakh and contributed only ₹133.34 lakh of segment result.
- The EBITDA margin comparison benefits from a negative year-ago EBITDA base of ₹370.50 lakh loss, so the reported margin expansion is not a valid operating-leverage signal under the stated four-gate test.
- Property, plant and equipment declined to ₹28,296.16 lakh from ₹29,319.80 lakh at March 31, 2026, while the company withdrew the new PEB capex plan and recognised related impairment in H1FY27.
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