JSW Dulux Q2 FY27 Results (NSE: JSWDULUX)
Signal: Margin pressure
The read
The operating recovery is real but not yet thesis-changing: consolidated revenue grew 16.2% YoY to ₹9,619 million, while gross margin compressed 397bps and EBITDA margin fell 271bps to 11.3%; this extends the recent margin-contraction arc after OPM declined in each of the last four quarters, despite the prior-year PAT comparison being distorted by ₹18,742 million of exceptional income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹961.9 Cr | +16.2% | -0.3% |
| EBIT | ₹88.8 Cr | -9.2% | |
| Net profit | ₹71.4 Cr | -95.8% | |
| EPS | ₹15.68 | -95.8% | |
| EBIT margin | 11.3% |
P&L walk
Revenue increased 16.2% YoY to ₹9,619 million, but gross margin contracted 397bps to 36.8% and EBITDA margin fell 271bps to 11.3%; PAT of ₹714 million was 95.8% lower because Q2FY26 included ₹18,742 million of exceptional income.
Segments
The company reports only one operating segment, Paints; the subsidiary contributed just ₹4 million of quarterly revenue and ₹2 million of PAT, leaving consolidated and standalone results nearly identical.
Key positives
- Revenue increased 16.2% YoY to ₹9,619 million, a marked improvement from the 3.0% YoY decline reported in Q1FY27.
- Employee benefits plus other expenses grew 4.9% YoY versus 16.2% revenue growth, providing partial operating-cost support despite gross-margin compression.
- Standalone PAT of ₹712 million and consolidated PAT of ₹714 million were nearly identical, indicating no material drag from the subsidiary.
Key concerns
- Gross margin compressed 397bps YoY to 36.8% as materials consumed rose to 63.3% of revenue from 53.3%; the filing does not disclose the cause.
- EBITDA margin fell 271bps YoY to 11.3%, continuing the recent contraction from 15% in Q3FY26 and 14% in Q4FY26.
- Inventories increased to ₹8,119 million from ₹5,711 million at 31 March 2026, while cash and cash equivalents declined to ₹813 million from ₹2,698 million.
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