Jai Balaji Inds. Q2 FY27 Results (NSE: JAIBALAJI)
Signal: Margin expansion
The read
The important inflection is gross-margin recovery: gross margin expanded 245bps YoY to 30.0% and EBITDA margin rose 254bps to 8.9%, lifting EBITDA 71.2% despite revenue growth of 22.1%; however, sequential revenue fell 1.8%, PAT fell 9.4% QoQ, operating cash flow declined 31.4% in H1 and the balance sheet shows higher net debt alongside rising CWIP.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,652.12 Cr | 22.1% | -1.8% |
| EBIT | ₹114.26 Cr | 110.4% | |
| Net profit | ₹77.22 Cr | 191.5% | |
| EPS | ₹0.85 | 193.1% | |
| EBIT margin | 8.9% |
P&L walk
Standalone revenue was ₹1,652.12 crore, up 22.1% YoY but down 1.8% QoQ; gross margin expanded 245bps YoY to 30.0% as raw-material cost fell to 70.1% of revenue, lifting EBITDA 71.2% to ₹146.27 crore, while PAT growth to ₹77.22 crore was further aided by a lower effective tax rate and higher other income.
Key positives
- Revenue reached ₹1,652.12 crore, up 22.1% YoY, despite a 1.8% QoQ decline.
- Gross margin expanded 245bps YoY to 30.0%, with raw-material cost falling to 70.1% of revenue from 70.5% YoY.
- EBITDA increased 71.2% YoY to ₹146.27 crore and EBITDA margin expanded 254bps to 8.9%; employee cost grew only 20.1% and depreciation 2.9% YoY.
- EPS rose 193.1% YoY to ₹0.85, broadly tracking 191.5% PAT growth, with no change in paid-up equity share capital.
Key concerns
- Revenue declined 1.8% QoQ and PAT declined 9.4% QoQ, indicating sequential moderation after the strong Q1FY27 base.
- Operating cash flow fell to ₹92.61 crore in H1FY27 from ₹134.80 crore, despite H1 PAT of ₹162.45 crore.
- Net debt increased to approximately ₹426.82 crore while CWIP rose to ₹429.86 crore, increasing execution and capital-allocation sensitivity.
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