K P R Mill Ltd Q2 FY27 Results (NSE: KPRMILL)

28 Oct 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The key inflection is the second consecutive quarter of reported margin expansion after Q3FY26's flat margin: consolidated EBITDA margin rose 641bps YoY to 25.7%, supported by materials at 40.7% of revenue versus 47.3% and fixed-cost growth below revenue growth, while sugar delivered the fastest segment growth.

P&L walk

Consolidated revenue increased 18.9% YoY to ₹193974 lakh while EBITDA rose 58.4% to ₹49768 lakh; the margin lift came alongside materials cost falling to 40.7% of revenue from 47.3% and employee cost growing 9.7% versus revenue growth of 18.9%.

Segments

Sugar was the main incremental growth driver: revenue rose 26.9% YoY to ₹43608 lakh and segment result jumped 260.1% to ₹7310 lakh, while textile revenue increased 16.6% to ₹147868 lakh and textile result rose 54.1% to ₹36826 lakh.

Key positives

• Consolidated revenue reached ₹193974 lakh, up 18.9% YoY, while EBITDA grew 58.4% to ₹49768 lakh; the ₹39.5 percentage-point growth gap and 641bps margin expansion satisfy the operating-leverage test.
• Materials cost fell to 40.7% of revenue from 47.3% YoY, producing a 660bps gross-margin tailwind; the filing does not identify whether this was input-cost, pricing or mix-led.
• Sugar segment result rose 260.1% YoY to ₹7310 lakh on 26.9% revenue growth, making it the fastest-growing reported business.
• EPS rose 58.2% YoY to ₹10.09, tracking PAT growth and providing no dilution signal.

Key concerns

• The filing does not disclose volume, realisation or capacity-utilisation data, so the 18.9% revenue growth cannot be separated into volume versus price/mix.
• Gross-margin expansion is significant at 660bps YoY, but management does not state whether the benefit is structural or temporary.

View original filing

Research and educational content only. Not investment advice.