Hi-Tech Pipes Q2 FY27 Results (NSE: HITECH)
Signal: Margin pressure
The read
The topline trajectory remains the strongest part of the thesis: consolidated revenue grew 70.7% YoY to ₹1,46,623.08 lakh after 78.6% growth in Q1FY27, but EBITDA margin fell about 140bps YoY to 3.9% and EBITDA growth of roughly 25.9% lagged revenue by about 44.8 percentage points; the key inflection to monitor is whether the expanding CWIP base converts capacity growth into margin recovery rather than another quarter of high growth with weak conversion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,466.23 Cr | +70.7% | +3.8% |
| Net profit | ₹27.25 Cr | +34.5% | |
| EPS | ₹1.34 | +32.7% | |
| EBIT margin | 3.90% |
P&L walk
Revenue rose 70.7% YoY to ₹1,46,623.08 lakh, but EBITDA increased only about 25.9% to roughly ₹5,725.06 lakh and margin declined to about 3.9%; PAT still rose 34.5% to ₹2,725.36 lakh as finance costs increased only 8.4% and there were no exceptional items.
Key positives
- Consolidated revenue reached ₹1,46,623.08 lakh, up 70.7% YoY and 3.8% sequentially, extending the sharp growth trajectory from 78.6% YoY in Q1FY27.
- Consolidated PAT rose 34.5% YoY to ₹2,725.36 lakh despite margin pressure, while finance costs increased only 8.4% YoY to ₹1,275.96 lakh.
- CWIP rose 95.6% to ₹20,124.97 lakh from ₹10,288.80 lakh at March 2026, supporting the stated capacity-expansion trajectory.
- Basic EPS rose 32.7% YoY to ₹1.34 with paid-up equity share capital unchanged at ₹2,031.08 lakh.
Key concerns
- EBITDA grew only about 25.9% YoY to roughly ₹5,725.06 lakh against 70.7% revenue growth, resulting in an estimated 140bps YoY margin contraction to about 3.9%.
- Standalone PAT grew only 11.6% YoY to ₹1,843.69 lakh versus 34.5% consolidated PAT growth, making subsidiary contribution increasingly material to group earnings.
- The filing does not disclose quarterly sales volume, realization or capacity utilization, limiting the ability to separate volume-led growth from price, mix and consolidation effects.
- Inventory increased to ₹67,649.90 lakh and trade receivables to ₹57,996.77 lakh at September 2026 from ₹56,558.11 lakh and ₹44,896.42 lakh respectively at March 2026, alongside the rapid revenue ramp-up.
Research and educational content only. Not investment advice.