Kabra Extrusion Q2 FY27 Results (NSE: KABRAEXTRU)
Signal: Margin expansion
The read
The quarter marks an operating inflection after three consecutive quarters of consolidated OPM contraction: EBITDA margin recovered to 9.52%, up 207bps YoY and 419bps QoQ, on a battery-led 64.2% revenue increase and fixed-cost absorption; however, gross margin fell 467bps to 31.70%, finance cost rose 112.0%, and H1 operating cash flow was negative 13,112.70 lakh, so the recovery is not yet cash-backed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹220.96 Cr | +64.2% | +77.5% |
| EBIT | ₹12.85 Cr | +532.3% | |
| Net profit | ₹3.97 Cr | +1095.7% | |
| EPS | ₹1.13 | +1155.6% | |
| EBIT margin | 9.52% |
P&L walk
Revenue accelerated to 22,096.19 lakh, +64.2% YoY and +77.5% QoQ, led by batteries; EBITDA margin recovered to 9.52% from 7.45% YoY and 5.33% QoQ, but gross margin compressed to 31.70% from 36.37% as material costs outpaced revenue, while PAT was boosted by higher other income.
Segments
The Battery Division is driving the group: revenue rose 252.9% YoY to 16,594.93 lakh and segment result turned positive at 1,320.13 lakh from a 1,219.80 lakh loss, while Extrusion Machinery revenue fell 38.0% to 5,501.26 lakh and slipped to a 12.36 lakh loss.
Key positives
- Battery Division revenue rose 252.9% YoY to 16,594.93 lakh and its segment result turned around from a 1,219.80 lakh loss to a 1,320.13 lakh profit.
- EBITDA grew 109.9% YoY to approximately 2,102.73 lakh versus revenue growth of 64.2%, a 45.7 percentage-point growth gap; employee cost grew 37.9% and depreciation 2.4%, while EBITDA margin expanded 207bps to 9.52%.
- Consolidated PAT recovered to 396.91 lakh from 33.21 lakh YoY and a 173.87 lakh QoQ loss, with EPS rising to ₹1.13 from ₹0.09.
Key concerns
- Gross margin compressed 467bps YoY to 31.70% as raw-material cost rose to 72.58% of revenue from 65.45%; revenue grew 64.2% while material cost grew approximately 81.4%, indicating cost absorption rather than full pass-through.
- H1 operating cash flow was negative 13,112.70 lakh despite H1 PAT of 223.04 lakh, mainly due to inventory and receivable increases of 6,791.50 lakh and 9,280.21 lakh respectively.
- Extrusion Machinery revenue fell 38.0% YoY to 5,501.26 lakh and the division moved to a 12.36 lakh loss from a 1,512.65 lakh profit.
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