Gandhi Spl. Tube Q2 FY27 Results (NSE: GANDHITUBE)
Signal: Growth decelerated
The read
The operating trajectory weakened in Q2FY27: revenue was ₹4809.74 lakh, only 0.2% above last year and 15.9% below Q1FY27, while gross margin compressed 519bps to 61.2%. PAT growth of 12.5% to ₹1989.55 lakh was therefore earnings-quality-sensitive, with a ₹657.81 lakh fair-value investment gain offsetting the absence of operating growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹48.1 Cr | +0.2% | -15.9% |
| Net profit | ₹19.9 Cr | +12.5% | |
| EPS | ₹16.48 | +13.2% |
P&L walk
Revenue was ₹4809.74 lakh, up only 0.2% YoY and down 15.9% QoQ; gross margin compressed to 61.2% from 66.3% as material and inventory costs rose to 38.8% of revenue from 33.7%; PAT nevertheless increased 12.5% to ₹1989.55 lakh, aided by investment fair-value gains rather than operating acceleration.
Key positives
- PAT increased 12.5% YoY to ₹1989.55 lakh despite revenue growth of only 0.2%, and H1 PAT rose 21.7% to ₹4783.22 lakh.
- Employee, power/fuel and other operating expenses declined 1.4% YoY to ₹1246.22 lakh, showing cost containment while revenue was broadly flat.
- EPS rose 13.2% to ₹16.48, slightly ahead of PAT growth, following the buyback and reduced share capital.
Key concerns
- Gross margin compressed 519bps YoY to 61.2% as material and inventory costs rose to 38.8% of revenue from 33.7%; the filing does not disclose the cause.
- Q2 revenue of ₹4809.74 lakh was only 0.2% above ₹4801.38 lakh YoY and fell 15.9% sequentially, indicating no visible operating growth momentum.
- PAT growth was supported by a ₹657.81 lakh fair-value investment gain, making reported profit less representative of core manufacturing earnings.
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