Jay Bharat Maru. Q2 FY27 Results (NSE: JAYBARMARU)
Signal: Margin pressure
The read
Q2FY27 marks a sharp revenue acceleration to ₹82,342.40 lakh, up 41.4% YoY versus 12.6% in Q1FY27, while operating margin expanded to 16.4%; however, gross margin fell 230bps as material costs rose 50.1% YoY, making the margin improvement dependent on slower opex growth rather than input-cost tailwinds.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹823.42 Cr | +41.4% | +31.4% |
| EBIT | ₹52.59 Cr | +35.1% | |
| Net profit | ₹37.2 Cr | +101.9% | |
| EPS | ₹2.96 | +74.1% | |
| EBIT margin | 16.4% |
P&L walk
Consolidated revenue rose 41.4% YoY to ₹82,342.40 lakh, while gross margin compressed 230bps to 24.0% as raw material costs rose to 78.5% of revenue; lower relative opex and finance-cost intensity supported EBITDA margin of 16.4% and PAT growth of 101.9% to ₹3,720.11 lakh.
Segments
The company reports a single operating segment, so the consolidated uplift is group-wide; the consolidated PAT of ₹3,720.11 lakh exceeded standalone PAT of ₹3,011.62 lakh, with the joint venture contributing ₹111.50 lakh to pre-tax profit.
Key positives
- Consolidated revenue rose 41.4% YoY to ₹82,342.40 lakh, accelerating from 12.6% YoY in Q1FY27.
- Operating profit increased to ₹13,484.61 lakh and operating margin expanded 290bps YoY to 16.4%, as employee and other expenses grew 32.4% versus revenue growth of 41.4%.
- Consolidated PAT doubled 101.9% YoY to ₹3,720.11 lakh, while finance-cost intensity remained contained at 1.3% of revenue.
- PPE of ₹1,19,670.59 lakh and CWIP of ₹17,730.41 lakh rose alongside depreciation of ₹2,736.29 lakh, indicating an active investment cycle rather than depreciation without asset-base growth.
Key concerns
- Gross margin compressed 230bps YoY to 24.0% as raw material cost rose to 78.5% of revenue from 73.9%, with material cost growth of 50.1% exceeding revenue growth of 41.4%.
- Inventory increased to ₹38,953.96 lakh and inventory days rose to 98.0 from 38.4 at 31-Mar-26, while receivable days increased to 24.8 from 16.7.
- Consolidated EPS grew 74.1% to ₹2.96, materially below PAT growth of 101.9%, creating an earnings-per-share reconciliation issue.
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