Indo Rama Synth. Q2 FY27 Results (NSE: INDORAMA)
Signal: Margin expansion
The read
The trajectory remains a margin-led recovery: EBITDA margin expanded to 13.2% from 6.6% YoY and marked a third consecutive quarter of expansion from Q4FY26, while revenue growth reaccelerated to 9.8% YoY after Q1FY27's 28.3% decline; the key test is whether the group-level margin can hold despite gross-margin compression and a declining asset base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,340.64 Cr | +9.8% | +43.1% |
| Net profit | ₹74.08 Cr | +201.8% | |
| EPS | ₹2.84 | +202.1% | |
| EBIT margin | 13.2% |
P&L walk
Consolidated revenue increased to ₹1,340.64 Cr, +9.8% YoY and +43.1% QoQ, while EBITDA rose to ₹176.60 Cr, +119.8% YoY, lifting margin to 13.2%; lower finance costs and the operating rebound drove PAT to ₹74.08 Cr, +201.8% YoY.
Segments
There is no segment split, but subsidiaries materially lifted the group: consolidated EBITDA was ₹176.60 Cr versus standalone EBITDA of ₹85.15 Cr, and consolidated PAT was ₹74.08 Cr versus standalone PAT of ₹55.05 Cr.
Key positives
- Consolidated EBITDA grew 119.8% YoY to ₹176.60 Cr versus revenue growth of 9.8%, with EBITDA margin expanding 660bps to 13.2%.
- Employee benefits expense grew only 2.8% YoY and depreciation grew 2.7% YoY, supporting the margin expansion as revenue increased 9.8%.
- Finance costs declined 13.6% YoY to ₹28.99 Cr as borrowings fell to ₹860.13 Cr from ₹1,131.60 Cr at 31 March 2026.
- Operating cash flow rose to ₹328.46 Cr in H1FY27 from ₹91.46 Cr in H1FY26, while borrowings were repaid by ₹271.47 Cr versus 31 March 2026.
Key concerns
- Gross margin compressed approximately 690bps YoY to 22.6%, despite revenue growth of 9.8%; raw material consumed remained high at 70.4% of revenue versus 69.7% YoY, and the filing does not disclose the driver.
- Revenue growth was only 9.8% YoY after 28.3% YoY contraction in Q1FY27, so the margin recovery is currently more advanced than the topline recovery.
- Standalone EBITDA margin was only 6.8% versus consolidated margin of 13.2%, indicating that the stronger group result is materially dependent on subsidiaries.
Research and educational content only. Not investment advice.