Excel Industries Q2 FY27 Results (NSE: EXCELINDUS)
Signal: Margin expansion
The read
The trajectory has inflected positively on margins for the second consecutive quarter: EBITDA margin rose from 16.7% in Q1FY27 to 17.8% in Q2FY27 and gross margin expanded 660bps YoY, but revenue fell 6.5% QoQ and H1 operating cash flow turned negative at ₹6,342.90 lakh because inventories increased ₹13,299.70 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹274.68 Cr | +1.6% | -6.5% |
| EBIT | ₹38.62 Cr | +36.8% | |
| Net profit | ₹28.9 Cr | +36.4% | |
| EPS | ₹22.99 | +36.4% | |
| EBIT margin | 17.8% |
P&L walk
Revenue was broadly stable YoY at ₹27,467.68 lakh (+1.6%) but declined 6.5% QoQ; gross margin expanded 660bps to 48.1% as raw-material intensity fell to 51.9%, lifting EBITDA 30.9% to ₹4,889.75 lakh and PAT 36.4% to ₹2,889.55 lakh.
Segments
The group reports only one Chemical segment, while subsidiaries lifted consolidated Q2 PAT to ₹2,889.55 lakh versus standalone PAT of ₹2,667.41 lakh, an 8.3% uplift; subsidiary revenue was only ₹26.15 lakh for the quarter but subsidiary comprehensive income included ₹17,025.42 lakh of OCI.
Key positives
- Consolidated EBITDA margin expanded to 17.8% from 13.8% a year earlier, with EBITDA up 30.9% YoY to ₹4,889.75 lakh despite revenue growth of only 1.6%.
- Gross margin improved 660bps YoY to 48.1% as raw-material intensity declined to 51.9% of revenue from 58.5%; the filing does not identify whether this was input-cost, pricing or mix driven.
- PAT rose 36.4% YoY to ₹2,889.55 lakh and EPS rose 36.4% to ₹22.99, showing no PAT-to-EPS dilution divergence.
- PPE increased to ₹43,390.03 lakh and H1 capex was ₹4,509.65 lakh, supporting continued investment in the chemical manufacturing asset base.
Key concerns
- Consolidated revenue declined 6.5% QoQ to ₹27,467.68 lakh after growing 1.6% YoY, indicating that the margin recovery is not yet accompanied by sequential demand momentum.
- Operating cash flow was negative ₹6,342.90 lakh in H1FY27 versus positive ₹1,638.43 lakh a year earlier, while inventory increased ₹13,299.70 lakh.
- Finance cost increased 42.8% QoQ to ₹84.05 lakh and borrowings rose to ₹1,898.77 lakh from ₹9.12 lakh at March 31, 2026.
- Consolidated H1 comprehensive income included ₹36,839.43 lakh of other comprehensive income versus consolidated PAT of ₹5,836.20 lakh, creating a material OCI/PAT divergence even though it does not affect reported PAT.
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