Graphite India Q2 FY27 Results (NSE: GRAPHITE)
Signal: Growth decelerated
The read
The operating recovery is not yet translating cleanly into group earnings: revenue reached ₹826 crore, +8.0% YoY, but pre-exceptional profit fell 29.1% to ₹100 crore and PAT fell 42.7% to ₹98 crore after a ₹22 crore exceptional charge; the consolidated subsidiary loss and rising CWIP are the key trajectory markers.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹826 Cr | +8.0% | -1.9% |
| EBIT | ₹100 Cr | -29.1% | |
| Net profit | ₹98 Cr | -42.7% | |
| EPS | ₹4.89 | -44.6% | |
| EBIT margin | 12.1% |
P&L walk
Consolidated revenue was ₹826 crore, +8.0% YoY and -1.9% QoQ; segment operating result before group allocations was ₹100 crore, but ₹67 crore of other unallocable expenditure/income and a ₹22 crore exceptional charge reduced PBT to ₹117 crore and PAT to ₹98 crore.
Segments
Graphite and Carbon Steel drove the group with ₹707 crore revenue and ₹82 crore segment result, while Others contributed ₹119 crore revenue and ₹18 crore result; the larger drag was subsidiaries, which reported a ₹39.06 crore quarterly net loss and pulled consolidated earnings below the parent operation.
Key positives
- Consolidated revenue rose to ₹826 crore, +8.0% YoY, with Graphite and Carbon Steel segment result increasing to ₹82 crore from ₹56 crore.
- Standalone operating profit before exceptional item and tax was ₹106 crore, indicating the parent manufacturing business remained profitable despite the weaker consolidated result.
- Cash flow from standalone operating activities was ₹163 crore in H1FY27 versus ₹34 crore in H1FY26, providing a positive cash-conversion signal.
Key concerns
- Consolidated PAT fell to ₹98 crore, -42.7% YoY, despite revenue growth, because pre-exceptional profit fell to ₹100 crore from ₹141 crore and a ₹22 crore exceptional charge was recognized.
- Subsidiaries reported a quarterly net loss of ₹39.06 crore, creating a material standalone-to-consolidated earnings drag.
- Cost of materials was ₹417 crore, or about 50.5% of consolidated revenue; the filing does not identify the reason for the gross-margin movement.
- CWIP increased to ₹148 crore from ₹61 crore while PP&E remained broadly flat, so the return and commissioning timeline of the investment cycle remain unproven.
Research and educational content only. Not investment advice.