Indian Hume Pipe Q2 FY27 Results (NSE: INDIANHUME)
Signal: Revenue declined
The read
The key inflection is sequential rather than YoY: EBITDA margin recovered to 16.3% from 15.4% in Q1FY27, but revenue fell 21.4% YoY and PAT fell 34.4% because the construction segment remains the sole earnings engine and project execution volume has weakened.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹286.76 Cr | -21.4% | -5.3% |
| EBIT | ₹41.83 Cr | -28.1% | |
| Net profit | ₹22.75 Cr | -34.4% | |
| EPS | ₹4.32 | -34.4% | |
| EBIT margin | 16.3% |
P&L walk
Standalone Q2 revenue fell 21.4% YoY to ₹28676.40 lakh; gross margin expanded 133bps to 29.5%, but EBITDA margin declined 97bps to 16.3% as the lower revenue base raised employee-cost intensity and PAT fell 34.4% to ₹2274.88 lakh.
Segments
Construction generated all ₹28676.40 lakh of segment revenue and ₹4182.75 lakh of segment result, both down 21.4% and 28.1% YoY respectively, while Real Estate remained at zero revenue and zero result.
Key positives
- Gross margin increased 133bps YoY to 29.5% and 255bps sequentially, indicating some resilience in direct project economics despite revenue falling 21.4% YoY.
- Depreciation rose 1.6% YoY to ₹499.39 lakh while PPE and CWIP both increased, providing a clean depreciation-to-capex signal rather than an asset-base mismatch.
- Finance costs declined 6.4% YoY to ₹1137.75 lakh, despite the quarter's lower operating profit.
Key concerns
- Revenue from operations fell 21.4% YoY to ₹28676.40 lakh, and construction segment result fell 28.1% to ₹4182.75 lakh.
- EBITDA margin compressed 97bps YoY to 16.3%, while employee costs were nearly flat at ₹3092.04 lakh and therefore rose to 10.8% of revenue.
- Operating cash flow was negative ₹13617.99 lakh in H1FY27 versus negative ₹734.45 lakh in H1FY26, driven chiefly by a ₹18445.56 lakh increase in other receivables and ₹3030.13 lakh inventory absorption.
Research and educational content only. Not investment advice.