Indian Metals Q2 FY27 Results (NSE: IMFA)
Signal: Growth decelerated
The read
The inflection is operating momentum rather than sequential growth: revenue reached ₹968.17 crore, +34.7% YoY, ferro-alloy result rose 50.5% YoY to ₹220.49 crore, and the gross margin expanded approximately 520bps YoY, marking the fourth consecutive quarter of margin expansion after the Q3FY26 trough; however, higher depreciation and finance costs show the capex cycle is also raising the fixed-cost burden.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹968.17 Cr | +34.7% | +0.8% |
| Net profit | ₹147.3 Cr | +51.1% | |
| EPS | ₹27.37 | +51.4% | |
| EBIT margin | N/A |
P&L walk
Revenue increased to ₹968.17 crore, +34.7% YoY and +0.8% QoQ, with gross margin expanding to approximately 66.1% from 60.9% as inventory movement shifted from a ₹27.06 crore charge to a ₹57.90 crore credit; PAT attributable to owners rose to ₹147.30 crore, +51.1% YoY, despite a 23.4% QoQ decline from the Q1 base.
Segments
Ferro alloys drove the group: segment revenue was ₹943.65 crore and segment result ₹220.49 crore, up 31.5% and 50.5% YoY respectively; mining turned profitable at ₹0.73 crore from a ₹1.92 crore loss, while power remained loss-making at ₹0.65 crore.
Key positives
- Ferro-alloy segment result increased 50.5% YoY to ₹220.49 crore on revenue of ₹943.65 crore, materially outpacing the group's 34.7% revenue growth.
- Gross margin expanded approximately 520bps YoY to 66.1%, with inventory movement improving from a ₹27.06 crore charge to a ₹57.90 crore credit.
- Mining turned profitable at ₹0.73 crore versus a ₹1.92 crore loss a year ago, adding a second improving operating unit alongside power's narrower ₹0.65 crore loss.
- Operating cash flow was ₹326.63 crore in H1FY27 versus ₹310.87 crore in H1FY26 despite ₹391.36 crore of capex investment.
Key concerns
- Finance cost increased to ₹12.46 crore from ₹7.66 crore YoY on a consolidated basis, while borrowings rose to ₹1,169.68 crore from ₹923.69 crore at the balance-sheet dates.
- Power remained loss-making at ₹0.65 crore and the Others segment lost ₹1.91 crore, limiting the breadth of the earnings improvement.
- Sequential PAT declined 23.4% to ₹147.30 crore despite revenue rising 0.8%, indicating that the Q1FY27 profit base was not maintained.
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