JTEKT India Q2 FY27 Results (NSE: JTEKTINDIA)
Signal: Steady quarter
The read
The key inflection is the QoQ margin recovery: EBITDA margin rose to 6.96% from 5.30% in Q1FY27 as revenue grew 16.3% sequentially and employee plus other expenses grew only 1.9% QoQ. However, the underlying YoY trajectory remains pressured, with gross margin down 209bps, finance costs up 196.3%, and PAT down 4.1%; sustained improvement requires material-cost normalisation and better returns on the expanding asset base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹834.74 Cr | +30.6% | +16.3% |
| EBIT | ₹26.72 Cr | -6.8% | |
| Net profit | ₹17.48 Cr | -4.1% | |
| EPS | ₹0.63 | -7.4% | |
| EBIT margin | 6.96% |
P&L walk
Standalone revenue accelerated to ₹83,474.26 lakh, +30.6% YoY and +16.3% QoQ, but gross margin compressed 209bps YoY as material costs rose faster than sales; EBITDA margin recovered 164bps QoQ to 6.96%, while PAT still declined 4.1% YoY to ₹1,748.14 lakh.
Key positives
- Revenue rose 30.6% YoY to ₹83,474.26 lakh, accelerating from 26.9% YoY growth in Q1FY27.
- EBITDA margin recovered 164bps QoQ to 6.96% from 5.30%, with employee plus other expenses growing 1.9% QoQ against 16.3% revenue growth.
- H1 operating cash flow increased to ₹12,616.69 lakh from ₹2,306.21 lakh, despite ₹19,947.24 lakh of capex outflow.
- PPE plus CWIP increased 8.6% from March 2026 and depreciation rose 36.4% YoY, indicating that incremental investment is beginning to enter the depreciating asset base.
Key concerns
- Gross margin compressed 209bps YoY to 25.49% as material cost rose to 73.92% of revenue from 72.41%; revenue growth did not offset the cost increase.
- PAT fell 4.1% YoY to ₹1,748.14 lakh despite 30.6% revenue growth, showing that operating growth is not yet converting into bottom-line growth.
- Finance costs rose 196.3% YoY to ₹562.74 lakh while net debt increased to ₹37,256.14 lakh from ₹26,543.95 lakh at March 2026.
- Depreciation increased 36.4% YoY to ₹3,137.25 lakh, creating a higher fixed-cost burden as the company expands its asset base.
Research and educational content only. Not investment advice.