I G Petrochems Q2 FY27 Results (NSE: IGPL)
Signal: Loss reversed
The read
The key inflection is a third consecutive quarter of margin expansion: consolidated EBITDA margin reached a derived 17.4%, up 1,310bps YoY, as revenue accelerated to +62.0% and raw material cost fell to 60.5% of revenue; the thesis now depends on whether the 602bps gross-margin tailwind persists because management did not disclose its cause.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹758.96 Cr | +62.0% | +22.8% |
| Net profit | ₹85.01 Cr | N/M | |
| EPS | ₹27.6 | N/M | |
| EBIT margin | 17.4% |
P&L walk
Revenue rose to 75,896.34 lakh, +62.0% YoY and +22.8% QoQ, while gross margin expanded to 29.2% from 23.2% YoY and EBITDA margin reached 17.4% from 4.3%; lower finance cost and the operating recovery drove PAT to 8,500.67 lakh from a year-ago loss.
Segments
The company remains a single-reportable-segment organic chemicals business; standalone PAT of 9,039.49 lakh exceeded consolidated PAT of 8,500.67 lakh by 538.82 lakh, indicating a modest subsidiary drag.
Key positives
- Consolidated revenue rose 62.0% YoY to 75,896.34 lakh, accelerating from 31.5% YoY growth in Q1FY27.
- Gross margin expanded 602bps YoY to 29.2% as raw material cost declined to 60.5% of revenue from 87.5%; the company held the benefit through to a derived EBITDA margin of 17.4%.
- Derived EBITDA margin expanded 1,310bps YoY as revenue grew 62.0% while employee benefits grew 16.0%, other expenses grew 3.5% and depreciation grew 10.1%.
- Operating cash flow turned positive at 17,411.00 lakh in the half-year versus an outflow of 3,858.61 lakh in the year-ago period.
- Consolidated finance cost declined 16.9% YoY to 929.69 lakh as borrowings fell to 30,704.26 lakh from 35,571.54 lakh at 31 March 2026.
Key concerns
- The 602bps YoY gross-margin expansion has no stated driver in the filing, leaving the durability of the input-cost tailwind unconfirmed.
- Gross margin declined 1,450bps QoQ and derived EBITDA margin eased 72bps QoQ despite revenue rising 22.8%, indicating that the sequential recovery may be moderating.
- Standalone PAT of 9,039.49 lakh exceeded consolidated PAT of 8,500.67 lakh by 538.82 lakh, showing that subsidiaries were a modest drag on group earnings.
Research and educational content only. Not investment advice.