Hariom Pipe Q2 FY27 Results (NSE: HARIOMPIPE)
Signal: Growth reaccelerated
The read
The operating inflection is the 29.2% QoQ revenue recovery after the Perundurai closure, but the thesis remains margin-sensitive: gross margin fell 248bps YoY as raw-material intensity rose to 81.8%, while consolidated PAT growth to ₹2,527.79 lakh was aided by the low year-ago base and remains below standalone earnings because subsidiaries are loss-making.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹554.6 Cr | +65.1% | +29.2% |
| EBIT | ₹51.97 Cr | +88.6% | |
| Net profit | ₹25.28 Cr | +142.8% | |
| EPS | ₹8.16 | +142.9% | |
| EBIT margin | 12.4% |
P&L walk
Revenue recovered to ₹55,459.56 lakh, up 65.1% YoY and 29.2% QoQ after the prior-quarter Perundurai disruption, but gross margin fell to 20.9% from 23.4% as raw material costs rose to 81.8% of revenue; PAT nevertheless rose 142.8% to ₹2,527.79 lakh on the stronger operating base.
Segments
The group is a single reportable steel-products segment, but standalone PAT of ₹2,852.33 lakh exceeded consolidated PAT of ₹2,527.79 lakh because Hariom Power and Energy reported a ₹58.71 lakh quarterly loss and Metal Mart reported a ₹0.64 lakh loss.
Key positives
- Consolidated revenue reached ₹55,459.56 lakh, up 65.1% YoY and 29.2% QoQ, reflecting recovery after the Perundurai unit resumed operations on July 13, 2026.
- Consolidated PAT rose 142.8% YoY to ₹2,527.79 lakh and basic EPS rose 142.9% to ₹8.16, with the PAT-to-EPS cross-check clean.
- Employee cost grew 22.4% YoY versus revenue growth of 65.1%, lowering employee-cost intensity to 3.0% of revenue.
- The subsidiary commissioned a 5 MW AC solar plant during the quarter, while consolidated PPE plus CWIP increased to ₹52,590.00 lakh from ₹45,742.82 lakh YoY.
Key concerns
- Gross margin compressed 248bps YoY to 20.9% as material costs, purchases and inventory movement reached 79.1% of revenue versus 76.6% YoY; the filing does not identify the cause.
- Finance costs rose 30.0% YoY to ₹1,725.55 lakh while consolidated borrowings increased 32.7% YoY to ₹52,399.33 lakh.
- Subsidiaries dragged consolidated earnings: Hariom Power and Energy reported a ₹58.71 lakh quarterly loss and Metal Mart reported a ₹0.64 lakh loss.
- Standalone H1 operating cash flow fell 18.4% YoY to ₹3,310.58 lakh as inventories rose 14.6% and receivables rose 33.4% YoY.
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