Karamtara Engg. H1FY27 Results (NSE: KARAMTARA)
Signal: Margin pressure
The read
The trajectory is high growth with weaker operating conversion: H1 revenue grew 66.87% and US revenue 141.37%, but EBITDA grew only 26.15%, pulling margin down 374bps to 11.60%; the next test is whether this margin compression reverses as the export-led scale matures.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,227.67 Cr | +66.87% | N/A |
| Net profit | ₹181.99 Cr | +40.93% | |
| EPS | ₹6.16 | +39.37% | |
| EBIT margin | 11.60% |
P&L walk
Revenue grew 66.87% to ₹322,766.56 lakh, led by US revenue growth of 141.37%, while EBITDA margin compressed 374bps to 11.60% and PAT growth lagged operating growth at 40.93%.
Segments
The US geography drove the consolidated acceleration with revenue of ₹205,936.29 lakh, up 141.37% YoY, while India grew 8.82% to ₹97,331.45 lakh and the rest of the world grew 4.63% to ₹19,498.82 lakh.
Key positives
- Revenue reached ₹322,766.56 lakh, up 66.87% YoY, with US revenue up 141.37% to ₹205,936.29 lakh.
- Gross margin expanded 475bps to 45.78% as raw-material consumption declined to 47.83% of revenue from 58.09%.
- Net debt fell ₹23,060.08 lakh to ₹72,467.84 lakh following the IPO, while finance costs grew 45.65%, below revenue growth of 66.87%.
- PPE increased ₹36,521.46 lakh to ₹152,948.34 lakh and depreciation rose 88.72%, indicating assets are being placed into the operating base.
Key concerns
- EBITDA margin fell 374bps to 11.60% because derived EBITDA grew 26.15%, 40.72 percentage points below revenue growth of 66.87%.
- Other expenses rose 132.19% to ₹105,148.18 lakh, almost twice the rate of revenue growth.
- Operating cash flow declined to ₹11,398.83 lakh from ₹29,268.44 lakh despite PAT rising 40.93%, mainly as trade receivables increased to ₹193,452.25 lakh from ₹131,609.48 lakh.
- PAT growth of 40.93% materially lagged revenue growth of 66.87%, showing incomplete conversion of export-led scale into earnings.
Research and educational content only. Not investment advice.