Garuda Cons Q2 FY27 Results (NSE: GARUDA)
Signal: Margin expansion
The read
The trajectory remains strong but is decelerating: Q2FY27 revenue grew 47.8% YoY versus 125.8% in Q3FY26, 81.7% in Q4FY26 and 40.0% in Q1FY27, while estimated EBITDA margin expanded to 32.7% from approximately 29.7% a year ago and PAT rose 49.7% to ₹4,061.36 lakh; the key watchpoint is whether working-capital absorption, with H1 operating cash flow at negative ₹3,757.33 lakh, persists as growth moderates.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹171.59 Cr | 47.8% | -2.2% |
| Net profit | ₹40.61 Cr | 49.7% | |
| EPS | ₹4.37 | 49.7% | |
| EBIT margin | 32.7% |
P&L walk
Consolidated revenue of ₹17,158.91 lakh grew 47.8% YoY but fell 2.2% QoQ; EBITDA margin improved to 32.7% from an estimated 29.7% a year ago as material costs grew only 8.0% while employee costs rose 4.9%, supporting PAT growth of 49.7% to ₹4,061.36 lakh.
Key positives
- Revenue from operations reached ₹17,158.91 lakh, up 47.8% YoY despite a 2.2% QoQ decline, sustaining the company's high-growth trajectory.
- Estimated EBITDA margin expanded approximately 305bps YoY to 32.7%; employee costs rose only 4.9% YoY versus revenue growth of 47.8%, providing a fixed-cost benefit.
- PAT increased 49.7% YoY to ₹4,061.36 lakh and EPS rose at the same 49.7% rate to ₹4.37, indicating no material dilution signal.
- Standalone and consolidated PAT differed by only ₹1.00 lakh, so subsidiaries did not materially distort reported earnings.
Key concerns
- H1 operating cash flow was negative ₹3,757.33 lakh despite H1 PAT of ₹8,213.86 lakh, with consolidated trade receivables rising ₹4,846.90 lakh and other current assets rising ₹9,262.11 lakh in the cash-flow bridge.
- Revenue growth has decelerated from 125.8% YoY in Q3FY26 and 81.7% in Q4FY26 to 47.8% in Q2FY27, while revenue also declined 2.2% QoQ.
- Consolidated borrowings increased to ₹5,263.98 lakh from ₹1,203.70 lakh at 31 March 2026, turning net cash of ₹1,083.66 lakh into net debt of ₹3,143.25 lakh.
Research and educational content only. Not investment advice.