Grauer & Weil Q2 FY27 Results (NSE: GRAUWEIL)
Signal: Margin pressure
The read
The demand trajectory improved, with consolidated revenue up 12.2% YoY to ₹29,047 lakh, but earnings quality weakened: EBIT fell 4.7% to ₹4,758 lakh and PAT fell 30.2% to ₹3,369 lakh after a 530bps sequential EBITDA-margin contraction. The raw-material signal improved, with cost intensity down 230bps YoY, so the next thesis test is whether operating costs and subsidiary losses reverse rather than whether demand recovers.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹290.47 Cr | +12.2% | +7.7% |
| EBIT | ₹47.58 Cr | -4.7% | |
| Net profit | ₹33.69 Cr | -30.2% | |
| EPS | ₹0.74 | -12.9% | |
| EBIT margin | 18.6% |
P&L walk
Revenue rose to ₹29,047 lakh, +12.2% YoY and +7.7% QoQ, while EBIT declined 4.7% YoY to ₹4,758 lakh and PAT fell 30.2% YoY to ₹3,369 lakh; the key deterioration was sequential margin loss rather than demand weakness.
Segments
Surface Finishings remained the group engine at ₹29,047 lakh of revenue and ₹4,758 lakh of segment result, while Engineering and Shoppertainment contributed ₹3,500 lakh and ₹24 lakh of revenue but reported segment losses of ₹42 lakh and ₹358 lakh respectively; consolidated PAT was ₹3,369 lakh versus standalone PAT of ₹3,896 lakh, indicating subsidiary drag.
Key positives
- Consolidated revenue reached ₹29,047 lakh, up 12.2% YoY and 7.7% QoQ, with Surface Finishings contributing ₹29,047 lakh and Engineering ₹3,500 lakh.
- Raw-material and inventory cost intensity declined to 17.8% of revenue from 20.1% a year earlier, expanding gross margin by approximately 230bps; the filing does not identify the cause.
- Finance costs fell 45.0% YoY to ₹55 lakh, reducing below-EBIT pressure.
- Operating cash flow was ₹7,532 lakh for H1FY27 against ₹6,117 lakh of PPE additions, while PPE and CWIP expanded to ₹24,567 lakh and ₹6,558 lakh.
Key concerns
- Consolidated PAT fell 30.2% YoY to ₹3,369 lakh despite 12.2% revenue growth, and declined 37.1% sequentially from ₹5,358 lakh.
- EBITDA margin contracted to approximately 18.6%, down about 315bps YoY and 530bps QoQ, indicating that the raw-material benefit did not translate into operating-profit growth.
- Engineering and Shoppertainment reported segment losses of ₹42 lakh and ₹358 lakh respectively, and consolidated PAT was ₹527 lakh below standalone PAT.
- The Mall operation remains temporarily suspended pursuant to the Maharashtra Pollution Control Board order dated 5 March 2025; the company's special leave petition remains pending and no provision has been made for related claims beyond the stated settlement.
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