Gateway Distri Q2 FY27 Results (NSE: GATEWAY)
Signal: Steady quarter
The read
The operating trajectory improved from Q1FY27's flat YoY revenue, with Q2 revenue up 2.3% to 58,012.67 lakh and profit before tax up 15.1% to 7,902.44 lakh, but the earnings conversion weakened because tax expense jumped to 2,049.59 lakh and owner PAT fell 13.5% to 5,794.47 lakh; H1 operating cash flow also declined 12.8% to 17,492.22 lakh while trade receivables rose.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹580.13 Cr | +2.3% | +5.6% |
| Net profit | ₹57.94 Cr | -13.5% | |
| EPS | ₹1.16 | -13.4% |
P&L walk
Revenue increased 2.3% YoY and profit before tax rose 15.1% to 7,902.44 lakh, while owner PAT declined 13.5% to 5,794.47 lakh because total tax expense rose to 2,049.59 lakh from 236.25 lakh.
Key positives
- Revenue from operations grew 2.3% YoY to 58,012.67 lakh and 5.6% sequentially, improving from the -0.2% YoY trend in Q1FY27.
- Profit before tax rose 15.1% YoY to 7,902.44 lakh, supported by a 16.6% decline in finance costs to 1,323.51 lakh.
- Property, plant and equipment increased 1.4% from March 31, 2026 to 1,87,364.59 lakh while depreciation rose only 0.9% YoY to 3,925.40 lakh, a clean depreciation-to-asset-base signal.
Key concerns
- Owner PAT declined 13.5% YoY to 5,794.47 lakh despite 15.1% growth in profit before tax because total tax expense rose to 2,049.59 lakh from 236.25 lakh.
- H1 operating cash flow fell 12.8% YoY to 17,492.22 lakh while trade receivables increased to 31,612.28 lakh from 26,561.01 lakh at March 31, 2026.
- Revenue growth remains modest at 2.3% YoY after -0.2% in Q1FY27, leaving the post-expansion growth trajectory unproven.
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