The Hi-Tech Gear Q2 FY27 Results (NSE: HITECHGEAR)

4 Nov 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The trajectory inflected positively in Q2FY27: consolidated revenue grew 18.4% YoY after 10.3% in Q1FY27, EBITDA margin recovered to 12.64% from 11.55% QoQ, and PAT rose 77.8% to 106.97 million, led by Canada's turnaround; however, margin remains below the 14.28%-15.46% range seen in Q2FY25-Q4FY25.

P&L walk

Consolidated revenue increased to 2,849.85 million, +18.4% YoY and +19.3% QoQ, while gross margin improved 123bps YoY and EBITDA margin rose 23bps YoY to 12.64%; the main earnings inflection was Canada's turnaround to a 28.77 million segment profit from 4.94 million, supporting PAT growth of 77.8% to 106.97 million.

Segments

India remained the main profit contributor at 171.77 million on 2,127.04 million revenue, while Canada was the key incremental driver as its segment result rose to 28.77 million from 4.94 million; Others continued to drag with an 11.44 million loss.

Key positives

• Consolidated revenue rose 18.4% YoY to 2,849.85 million, accelerating from 10.3% YoY growth in Q1FY27.
• EBITDA grew 20.6% YoY to 363.89 million versus revenue growth of 18.4%, while EBITDA margin expanded 23bps YoY to 12.64%.
• Canada segment profit increased to 28.77 million from 4.94 million YoY, materially improving the overseas earnings contribution.
• Operating cash flow rose 91.3% YoY to 587.75 million in H1FY27, versus PAT of 154.55 million.

Key concerns

• EBITDA margin at 12.64% remains below the 14.28% reported in Q2FY25 and 15.46% in Q4FY25 despite the quarterly recovery.
• Other segment remained loss-making at 11.44 million, compared with a 1.68 million loss in the year-ago quarter.
• Standalone PAT of 115.68 million exceeded consolidated PAT of 106.97 million, showing that overseas subsidiaries still dilute parent earnings despite Canada's turnaround.

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