Lohia Corp Q2 FY27 Results (NSE: LCL)
Signal: Steady quarter
The read
The trajectory remains growth-positive, with consolidated revenue up 42.0% YoY and PAT up 48.2%, but the key inflection is gross-margin compression of 385bps to 41.4%; EBITDA margin has now eased 27bps YoY to 20.4% after the prior quarter's 20.0%, so the next results must show whether input-cost pressure is transient or structural.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹594.33 Cr | +42.0% | +18.1% |
| EBIT | ₹108.41 Cr | +44.6% | |
| Net profit | ₹77.75 Cr | +48.2% | |
| EPS | ₹7.36 | +48.4% | |
| EBIT margin | 20.4% |
P&L walk
Revenue grew 42.0% YoY and 18.1% QoQ, but gross margin compressed 385bps YoY to 41.4% as material costs remained elevated; EBITDA margin eased 27bps to 20.4%, while lower finance costs and higher operating profit lifted PAT 48.2%.
Segments
The Group reports one operating segment, but six subsidiaries disclosed in the audit review generated ₹222.99 million of quarterly revenue and a ₹52.56 million net loss, dragging consolidated earnings relative to the parent-led standalone operation.
Key positives
- Consolidated revenue reached ₹5,943.33 million, up 42.0% YoY and 18.1% QoQ, maintaining growth well above the company's 3-year sales CAGR of 24.7%.
- PAT increased 48.2% YoY to ₹777.47 million and EPS increased 48.4% to ₹7.36, with EPS tracking PAT closely.
- Finance costs declined 28.7% YoY to ₹27.29 million, while H1 operating cash flow was ₹1,320.72 million versus ₹1,214.24 million a year earlier.
- Borrowings less cash declined to net debt of ₹865.66 million from ₹1,235.30 million at 31 March 2026.
Key concerns
- Gross margin compressed 385bps YoY to 41.4% as material and trading costs remained a larger burden, and the filing does not disclose the cause or the volume/mix split.
- EBITDA grew 40.2% YoY to ₹1,214.73 million, slower than 42.0% revenue growth, while EBITDA margin declined 27bps YoY to 20.4%; this is not an operating-leverage quarter.
- Inventories rose 40.2% to ₹5,556.66 million and trade receivables rose 37.2% to ₹1,898.50 million from 31 March 2026, increasing working-capital intensity despite positive operating cash flow.
Research and educational content only. Not investment advice.