GNA Axles Q2 FY27 Results (NSE: GNA)
Signal: Margin pressure
The read
The trajectory is a sharp revenue recovery, with Q2 revenue growth accelerating to 49.8% YoY from 36.6% in Q1FY27, but the margin arc has weakened: EBITDA margin fell 188bps YoY to 15.8% after two quarters around 18%, as other expenses rose 74.0% versus revenue growth of 49.8%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹521.15 Cr | +49.8% | +10.8% |
| Net profit | ₹44.07 Cr | +41.3% | |
| EPS | ₹10.26 | +41.1% | |
| EBIT margin | 15.8% |
P&L walk
Revenue accelerated to ₹52115.01 lakh, +49.8% YoY and +10.8% QoQ, but EBITDA margin fell to 15.8% from 17.7% as other expenses increased 74.0% YoY; PAT still rose 41.3% to ₹4406.78 lakh.
Key positives
- Consolidated revenue rose 49.8% YoY to ₹52115.01 lakh and 10.8% QoQ, extending the recovery from ₹34794.09 lakh in Q2FY26.
- PAT rose 41.3% YoY to ₹4406.78 lakh and EPS rose 41.1% to ₹10.26, broadly tracking profit growth without dilution.
- PPE plus CWIP increased 14.2% YoY to ₹51564.86 lakh while depreciation rose 13.7% YoY to ₹1827.77 lakh, a clean asset-base cross-check.
Key concerns
- EBITDA margin contracted 188bps YoY to 15.8% and gross margin declined 78bps to 60.5%, interrupting the recent margin expansion trend.
- Other expenses rose 74.0% YoY to ₹9318.44 lakh, 24.2 percentage points faster than revenue growth, while employee expenses rose 55.6% to ₹3132.96 lakh.
- Operating cash flow was ₹6115.03 lakh against H1 PAT of ₹8233.90 lakh, while receivables rose 19.9% YoY to ₹69827.38 lakh and inventories rose 42.7% to ₹31264.02 lakh.
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