GHCL Textiles Q2 FY27 Results (NSE: GHCLTEXTIL)
Signal: Margin expansion
The read
The operating inflection remains intact: EBITDA margin expanded to 20.59% from 11.26% YoY and 17.06% in Q1FY27 as revenue grew 31.8% YoY, with operating costs growing only 10.1%; however, the ₹26.78 crore fire loss reduced reported PAT margin to 8.04%, while the ₹415.25 crore FY27 capex plan shifts the thesis toward execution and asset productivity.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹445.53 Cr | +31.8% | +8.9% |
| EBIT | ₹76 Cr | +227.6% | |
| Net profit | ₹35.84 Cr | +123.9% | |
| EPS | ₹3.75 | +123.2% | |
| EBIT margin | 20.59% |
P&L walk
Revenue increased to ₹445.53 crore, +31.8% YoY and +8.9% QoQ, while gross margin expanded to 37.96% from 31.59% and EBITDA margin reached 20.59% from 11.26% YoY; operating profit rose 227.6%, but a ₹26.78 crore fire loss reduced PAT growth to 123.9%.
Key positives
- Revenue reached ₹445.53 crore, +31.8% YoY and +8.9% QoQ, sustaining growth after ₹408.94 crore in Q1FY27.
- EBITDA rose 140.9% YoY to ₹91.72 crore and margin expanded 933bps to 20.59%; revenue grew +31.8% while employee cost grew only +6.2%, depreciation +5.8% and finance cost +2.7%.
- Gross margin expanded 637bps YoY to 37.96% as raw-material and related input costs declined to 62.04% of revenue from 68.41%; the filing does not disclose the precise driver.
- H1FY27 operating cash flow was ₹130.36 crore versus ₹58.95 crore in H1FY26, while borrowings declined by ₹74.42 crore from March 2026 levels.
- The company approved an additional ₹415.25 crore FY27 capital budget for a 58,368-spindle spinning unit at Manaparai, Tamil Nadu.
Key concerns
- A ₹26.78 crore exceptional loss reduced Q2FY27 PAT to ₹35.84 crore despite ₹74.48 crore profit before exceptional items; insurance recovery remains pending assessment.
- PPE declined to ₹1,164.72 crore from ₹1,189.88 crore even as depreciation rose 5.8% YoY to ₹15.72 crore, making the conversion of planned capex into productive assets a key execution issue.
- Trade receivables increased to ₹201.69 crore from ₹170.59 crore at March 2026, and H1 cash-flow adjustments show a ₹30.99 crore receivables use of cash.
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