Igarashi Motors Q2 FY27 Results (NSE: IGARASHI)
Signal: Steady quarter
The read
The trajectory is a mixed operating recovery: automotive revenue accelerated the group to 16.56% YoY growth, but gross margin compressed 279bps as raw-material cost reached 67.62% of revenue and non-automotive slipped into a ₹52.53 lakh loss; PAT growth to ₹639.13 lakh was helped by a lower tax burden and does not yet show broad-based margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹255.43 Cr | 16.56% | 1.82% |
| EBIT | ₹10.52 Cr | 13.19% | |
| Net profit | ₹6.39 Cr | 40.83% | |
| EPS | ₹2.03 | 40.97% | |
| EBIT margin | 10.35% |
P&L walk
Revenue increased 16.56% YoY to ₹25,543.10 lakh, but gross margin compressed 279bps as raw-material cost rose to 67.62% of revenue; EBITDA margin fell 36bps to 10.35%, while PAT still rose 40.83% to ₹639.13 lakh aided partly by a lower effective tax burden.
Segments
Automotive drove the quarter with revenue up 22.19% YoY to ₹23,280.20 lakh and segment result up 8.77% to ₹3,042.63 lakh, while non-automotive revenue fell 20.92% to ₹2,262.90 lakh and its result turned to a ₹52.53 lakh loss from a ₹21.26 lakh profit.
Key positives
- Automotive revenue rose 22.19% YoY to ₹23,280.20 lakh, outpacing total company revenue growth of 16.56%.
- Automotive segment result increased 8.77% YoY to ₹3,042.63 lakh despite group gross-margin compression.
- PAT rose 40.83% YoY to ₹639.13 lakh and EPS rose 40.97% to ₹2.03, with EPS tracking PAT.
- H1 operating cash flow remained positive at ₹3,870.08 lakh, while depreciation of ₹1,592.85 lakh rose alongside the ₹85,880.98 lakh asset base.
Key concerns
- Gross margin compressed 279bps YoY to 33.46% as raw-material cost increased to 67.62% of revenue from 64.43%, indicating cost absorption because revenue grew slower than raw-material cost.
- Non-automotive revenue declined 20.92% YoY to ₹2,262.90 lakh and segment result turned from a ₹21.26 lakh profit to a ₹52.53 lakh loss.
- EBITDA grew 12.69% YoY, slower than revenue growth of 16.56%, and EBITDA margin declined 36bps to 10.35%.
- H1 operating cash flow fell 16.15% YoY to ₹3,870.08 lakh despite H1 PAT rising 86.70% to ₹1,315.82 lakh.
Research and educational content only. Not investment advice.