Granules India Q2 FY27 Results (NSE: GRANULES)
Signal: Steady quarter
The read
The trajectory remains constructive on the top line, with the sixth consecutive quarter of YoY revenue growth and consolidated revenue up 20.3% to ₹15,599.74 million, but the key inflection is a widening parent-versus-group gap: consolidated PAT rose 39.2% while standalone PAT fell 10.0%; warrant conversion also means EPS growth at 34.2% trails PAT growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,559.97 Cr | +20.3% | +5.6% |
| EBIT | ₹253.71 Cr | +23.0% | |
| Net profit | ₹181.84 Cr | +39.2% | |
| EPS | ₹7.22 | +34.2% | |
| EBIT margin | 21.6% |
P&L walk
Consolidated revenue increased 20.3% YoY to ₹15,599.74 million, EBIT rose 23.0% to ₹2,537.12 million and PAT rose 39.2% to ₹1,818.37 million, with other income and the lower finance-cost burden supporting earnings while sequential EBIT margin contracted 130bps.
Segments
The consolidated group materially outperformed the parent: consolidated revenue grew 20.3% YoY to ₹15,599.74 million and PAT 39.2% to ₹1,818.37 million, versus standalone revenue growth of 6.3% and PAT decline of 10.0%, indicating subsidiaries drove the earnings uplift.
Key positives
- Consolidated revenue grew 20.3% YoY to ₹15,599.74 million, extending the company's YoY growth streak to six quarters.
- Consolidated PAT grew 39.2% YoY to ₹1,818.37 million, materially ahead of revenue growth, while finance costs declined 28.2% to ₹209.74 million.
- Operating cash flow remained positive at ₹4,524.43 million in H1FY27 and the balance sheet moved to net cash of ₹289.41 million from net debt of ₹1,607.44 million at March 2026.
- Consolidated employee benefits and other expenses grew 18.0% YoY, below the 20.3% revenue growth rate, while derived EBITDA increased 21.3% to ₹3,375.77 million.
Key concerns
- Standalone PAT declined 10.0% YoY to ₹1,085.16 million and standalone EBIT declined 22.1% to ₹1,329.38 million, showing that the parent business was materially weaker than the consolidated group.
- Basic EPS growth of 34.2% lagged PAT growth of 39.2% because paid-up equity capital rose to ₹272.78 million after conversion of 24,982,906 warrants.
- Consolidated sequential EBIT margin fell 130bps to a derived 16.3%, while consolidated gross margin was 64.4%, down 134bps YoY.
- H1 operating cash flow declined 4.6% YoY to ₹4,524.43 million despite H1 PAT rising 48.8% to ₹3,618.00 million.
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