Gravita India Q2 FY27 Results (NSE: GRAVITA)
Signal: Growth decelerated
The read
The key inflection is sequential consolidated margin recovery: revenue rose to ₹1,421.39 Cr, +3.4% QoQ, and EBITDA margin recovered to 10.6% from approximately 7.0% in Q1, but standalone PAT fell 45.7% YoY to ₹47.34 Cr and finance costs surged to ₹13.35 Cr, leaving the trajectory increasingly dependent on subsidiaries and scale-up investments.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,421.39 Cr | +35.3% | +3.4% |
| EBIT | ₹137.56 Cr | +10.7% | |
| Net profit | ₹102.03 Cr | +6.3% | |
| EPS | ₹13.82 | +6.2% | |
| EBIT margin | 10.6% |
P&L walk
Consolidated revenue reached ₹1,421.39 Cr, +35.3% YoY and +3.4% QoQ, while EBITDA rose to ₹151.16 Cr, +10.7% YoY, and PAT was ₹102.03 Cr, +6.3% YoY; the group recovered sequentially from Q1's margin pressure but earnings growth remained well below revenue growth.
Segments
The consolidated group materially outperformed the parent: consolidated PAT was ₹102.03 Cr versus standalone PAT of ₹47.34 Cr, while subsidiaries contributed ₹771.84 Cr of quarterly revenue and ₹52.06 Cr of net profit before consolidation adjustments.
Key positives
- Consolidated revenue increased to ₹1,421.39 Cr, +35.3% YoY, with subsidiaries accounting for ₹771.84 Cr of quarterly revenue.
- Consolidated EBITDA increased to ₹151.16 Cr, +10.7% YoY, and EBITDA margin recovered sequentially to 10.6% from approximately 7.0% in Q1FY27.
- Standalone H1 operating cash flow improved to ₹107.00 Cr from negative ₹91.47 Cr in H1FY26.
- PPE increased to ₹331.38 Cr and CWIP to ₹55.90 Cr, while depreciation rose 22.5% YoY, indicating that capacity investment is entering the asset base.
- The Board declared an interim dividend of ₹7.70 per share, amounting to ₹56.83 Cr.
Key concerns
- Consolidated PAT of ₹102.03 Cr grew only 6.3% YoY against 35.3% revenue growth, indicating significant margin dilution.
- Standalone revenue declined 7.7% YoY to ₹786.91 Cr and standalone PAT fell 45.7% to ₹47.34 Cr.
- Consolidated finance costs increased to ₹13.35 Cr from ₹1.52 Cr a year earlier, while standalone borrowings rose to ₹443.97 Cr from ₹332.52 Cr at March 31, 2026.
- The consolidated result is materially more dependent on subsidiaries: group PAT of ₹102.03 Cr was more than twice standalone PAT of ₹47.34 Cr.
- The filing does not disclose the volume, realisation or mix bridge behind the 35.3% consolidated revenue growth.
Research and educational content only. Not investment advice.