Fabtech Tech. Q2 FY27 Results (NSE: FABTECH)
Signal: Revenue declined
The read
The quarter shows a sequential execution recovery rather than a clean YoY inflection: revenue rose from ₹749.8 million to ₹920.9 million QoQ and EBITDA margin expanded from 9.5% to 16.0%, but revenue remained down 24.2% YoY, EBITDA margin was 10.8 percentage points below Q2FY26, and management reduced the FY27 operational PAT-margin objective to 8–9% from the prior 9–11% claim.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹92.09 Cr | -24.2% | +22.8% |
| Net profit | ₹15.02 Cr | -46.6% | |
| EPS | ₹3.38 | -61.1% | |
| EBIT margin | 16.0% |
P&L walk
Q2 revenue was ₹920.9 million, down 24.2% YoY but up 22.8% QoQ, while EBITDA margin recovered to 16.0% from 9.5% QoQ but remained 10.8 percentage points below Q2FY26; management attributed the H1 margin pressure to freight, security and raw-material costs.
Key positives
- Q2 revenue recovered 22.8% QoQ to ₹920.9 million and EBITDA margin expanded 650bps QoQ to 16.0%, indicating better execution entering H2FY27.
- The order book is ~900 Cr, with an additional 800-850 Cr of prospective Africa and Saudi opportunities under discussion, providing stated visibility over the next 12 months.
- Management reported no order cancellations despite timing delays, and said most orders are covered by letters of credit, reducing stated receivable risk.
Key concerns
- Revenue fell 24.2% YoY to ₹920.9 million and H1 revenue fell 11.8% YoY to ₹1,670.7 million, showing that project timing remains uneven.
- Q2 EBITDA margin declined 1080bps YoY to 16.0% and H1 EBITDA margin declined 140bps to 13.1%, with freight, security, idle-time, preliminaries and raw-material costs cited as pressure points.
- FY27 operational PAT-margin guidance was lowered to 8–9% from the prior 9–11% objective.
- EPS declined 61.1% YoY to ₹3.38 versus a 46.6% PAT decline, requiring monitoring for dilution or a higher minority-interest share.
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