KRBL Q2 FY27 Results (NSE: KRBL)
Signal: Margin expansion
The read
The trajectory remains margin-led rather than volume-led: revenue rose 14.3% YoY as domestic agri revenue grew 33.8%, but export agri revenue declined 31.5%; gross margin expanded 510bps to 32.9% and estimated EBITDA margin reached 19.2%, extending the recent margin recovery, although the sequential margin eased from an estimated 20.6%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,727.36 Cr | +14.3% | +15.5% |
| Net profit | ₹258.99 Cr | +50.6% | |
| EPS | ₹11.31 | +50.4% | |
| EBIT margin | 19.2% |
P&L walk
Revenue increased to ₹172736 lakh, +14.3% YoY and +15.5% QoQ, with gross margin expanding to 32.9% from 27.8% as raw-material intensity fell to 32.4% from 41.6%; estimated EBITDA margin reached 19.2%, while PAT rose to ₹25899 lakh, +50.6% YoY, helped by lower input intensity and ₹4103 lakh of other income.
Segments
Agri drove the result with revenue of ₹171534 lakh, +14.9% YoY, and segment result of ₹33074 lakh, +53.3% YoY; Energy revenue grew 28.4% but its result declined 0.5% to ₹2268 lakh, while domestic agri revenue rose 33.8% and overseas agri revenue fell 31.5%.
Key positives
- Domestic agri revenue reached ₹141814 lakh, +33.8% YoY, more than offsetting the 31.5% decline in agri rest-of-world revenue.
- Gross margin expanded 510bps YoY to 32.9% as raw-material and inventory-related costs declined to 67.1% of revenue from 72.2%.
- Employee cost rose only 3.2% YoY to ₹5537 lakh against 14.3% revenue growth, supporting estimated EBITDA margin expansion to 19.2% from 15.0%.
- H1 operating cash flow was ₹221796 lakh versus H1 profit before tax of ₹69667 lakh, supported by a ₹151043 lakh reduction in inventories.
Key concerns
- Export weakness remains significant: agri rest-of-world revenue fell to ₹29720 lakh, -31.5% YoY, despite domestic agri revenue growth of 33.8%.
- Estimated EBITDA margin declined sequentially from approximately 20.6% to 19.2%, so the latest margin peak is not yet clearly sustained.
- Energy segment result declined 0.5% YoY to ₹2268 lakh despite revenue growth of 28.4%.
Research and educational content only. Not investment advice.