Guj Inds. Power Q2 FY27 Results (NSE: GIPCL)
Signal: Margin expansion
The read
The key inflection is a sharp sequential earnings reset: Q2 revenue declined 13.6% QoQ and EBITDA margin dropped 2,540bps to 45.4% from 70.8%, although the 677bps YoY gross-margin expansion and 84.3% YoY PAT growth keep the H1 trajectory strong at ₹19,713.25 lakh PAT, up 150.0% YoY. The main watchpoint is financing intensity, with finance costs up 181.6% YoY and net debt higher by ₹58,709.78 lakh since March.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹431.16 Cr | 34.1% | -13.6% |
| EBIT | ₹103.23 Cr | 60.2% | |
| Net profit | ₹39.24 Cr | 84.3% | |
| EPS | ₹2.53 | 84.7% | |
| EBIT margin | 45.4% |
P&L walk
Q2 revenue was ₹43,115.52 lakh, up 34.1% YoY but down 13.6% QoQ; lower raw-material intensity lifted gross margin to 69.2%, but EBITDA margin fell to 45.4% from 70.8% in Q1 as generation, employee, finance and depreciation costs remained elevated; PAT was ₹3,923.55 lakh, up 84.3% YoY but down 75.1% QoQ.
Key positives
- Revenue from operations reached ₹43,115.52 lakh, up 34.1% YoY, while H1 revenue rose 34.3% YoY to ₹93,043.29 lakh.
- Gross margin expanded 677bps YoY to 69.2% as raw-material cost declined to 30.8% of revenue from 37.6%.
- H1 PAT increased 150.0% YoY to ₹19,713.25 lakh and operating cash flow rose to ₹38,171.83 lakh from ₹30,892.96 lakh.
Key concerns
- EBITDA margin declined 2,540bps QoQ to 45.4% from 70.8%, showing substantial sequential earnings volatility.
- Finance costs increased 181.6% YoY to ₹5,121.91 lakh, well ahead of 34.1% revenue growth.
- Net debt increased by ₹58,709.78 lakh since 31 March 2026 while H1 PPE, CWIP and capital-advance acquisition reached ₹78,476.27 lakh.
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