Kronox Lab H1FY27 Results (NSE: KRONOX)
Signal: Margin pressure
The read
The trajectory is steady revenue growth but weaker operating conversion: H1FY27 revenue rose 10.8% to ₹5,522.06 lakh while EBITDA grew only 4.0% and margin contracted 204bps to 35.3%; cash generation improved to ₹1,604.13 lakh and borrowings fell to nil, supporting the capacity-expansion setup despite the margin setback.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹55.22 Cr | 10.8% | N/A |
| EBIT | ₹18.54 Cr | 4.6% | |
| Net profit | ₹13.74 Cr | 5.2% | |
| EPS | ₹3.7 | 5.1% | |
| EBIT margin | 35.3% |
P&L walk
H1FY27 revenue increased 10.8% to ₹5,522.06 lakh, but gross margin declined to 52.6% from 53.8% and EBITDA margin to 35.3% from 37.3%; PAT still rose 5.2% to ₹1,374.33 lakh as finance costs remained small despite increasing to ₹11.15 lakh.
Key positives
- Revenue rose 10.8% YoY to ₹5,522.06 lakh, sustaining growth despite the prior-quarter revenue base of ₹2,838.64 lakh.
- Operating cash flow increased 52.8% YoY to ₹1,604.13 lakh, exceeding H1 PAT of ₹1,374.33 lakh.
- Borrowings reduced from ₹160.69 lakh at 31 March 2026 to nil by 30 September 2026, while cash and bank balances reached ₹7,952.05 lakh.
- CWIP increased to ₹180.80 lakh from ₹87.56 lakh, indicating an expanding capacity-investment pipeline.
Key concerns
- EBITDA grew only 4.0% YoY to ₹1,949.01 lakh versus 10.8% revenue growth, and EBITDA margin compressed 204bps to 35.3%.
- Gross margin declined 124bps to 52.6% as material and inventory-related costs reached ₹2,618.29 lakh, although management did not disclose the driver.
- Employee plus other expenses rose 15.0% YoY to ₹1,160.14 lakh, faster than revenue growth of 10.8%.
- Finance costs rose 184.4% YoY to ₹11.15 lakh, though they remain only 0.2% of revenue.
Research and educational content only. Not investment advice.