Gujarat Alkalies Q2 FY27 Results (NSE: GUJALKALI)
Signal: Growth reaccelerated
The read
Q2FY27 confirms a second consecutive quarter of positive PAT after the Q1FY27 inflection: revenue accelerated to ₹1,35,750 lakh, +25.3% YoY, while gross margin expanded 456bps as raw-material intensity fell to 35.4% of revenue; however, the input-cost driver is undisclosed and operating cash flow declined 51.6% YoY to ₹14,453 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,357.5 Cr | +25.3% | +9.0% |
| Net profit | ₹82.57 Cr | +405.3% | |
| EPS | ₹11.24 | +404.0% |
P&L walk
Revenue increased to ₹1,35,750 lakh, +25.3% YoY and +9.0% QoQ; gross margin expanded 456bps YoY as raw-material intensity fell, while PAT rose to ₹8,257 lakh from ₹1,634 lakh, helped by ₹333 lakh of joint-venture and associate profit.
Segments
The company reports a single Chemicals segment; consolidated PAT of ₹8,257 lakh exceeded standalone PAT of ₹7,924 lakh by ₹333 lakh because joint ventures and associates contributed ₹333 lakh, versus ₹6 lakh a year earlier.
Key positives
- Revenue reached ₹1,35,750 lakh, up 25.3% YoY and 9.0% QoQ, improving from the 1.5% YoY growth reported in Q3FY26 and 4.7% in Q4FY26.
- Gross margin expanded 456bps YoY to 64.6% as raw-material cost fell to 35.4% of revenue from 40.0%; this is the first identifiable input-cost tailwind in the available filing series and requires confirmation.
- Consolidated PAT increased 405.3% YoY to ₹8,257 lakh and 50.2% QoQ, extending the recent earnings recovery.
- EPS grew 404.0% to ₹11.24, broadly tracking PAT growth from ₹1,634 lakh to ₹8,257 lakh.
Key concerns
- The filing does not disclose whether the 25.3% revenue growth was volume- or realisation-led, limiting visibility on the durability of the recovery.
- Operating cash flow declined 51.6% YoY to ₹14,453 lakh while receivables increased to ₹57,804 lakh from ₹40,727 lakh and inventories to ₹58,541 lakh from ₹45,014 lakh.
- Gross margin declined 231bps sequentially from 66.9%, so the YoY input-cost tailwind has not yet translated into sequential margin expansion.
- Capital work-in-progress increased to ₹23,375 lakh while depreciation remained broadly flat at ₹10,441 lakh, requiring monitoring as projects are commissioned.
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