Linde India Q2 FY27 Results (NSE: LINDEINDIA)
Signal: Growth decelerated
The read
The trajectory has inflected from growth-led margin expansion to growth with earnings compression: revenue rose 12.3% YoY to ₹7,231.97 million, but derived EBITDA margin fell 1,240bps to 32.0% and PAT declined 30.5% to ₹1,188.12 million. This is the third consecutive quarter of margin contraction after the prior margin expansion run, with power and fuel at ₹1,283.24 million and finance costs at ₹158.14 million the key disclosed pressures.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹723.2 Cr | +12.3% | +4.2% |
| Net profit | ₹118.81 Cr | -30.5% | |
| EPS | ₹13.93 | -30.5% | |
| EBIT margin | 32.0% |
P&L walk
Revenue increased to ₹7,231.97 million, +12.3% YoY and +4.2% QoQ, but derived EBITDA fell 19.0% YoY and margin contracted to 32.0% from 44.4%; higher finance costs and lower operating profit reduced PAT to ₹1,188.12 million, -30.5% YoY.
Segments
Gases remained the earnings driver with ₹5,627.57 million revenue and ₹1,600.77 million result, but its result fell 25.9% YoY despite broadly flat revenue; project engineering also weakened, with revenue down 0.5% and result down 13.7%, so both segments dragged consolidated profitability.
Key positives
- Revenue recovered to ₹7,231.97 million, up 12.3% YoY and 4.2% QoQ, while H1FY27 revenue reached ₹14,175.60 million versus ₹12,152.73 million, up 16.6%.
- Operating cash flow was positive at ₹7,111.81 million in H1FY27, providing internal cash generation despite ₹13,580.70 million of investment in property, plant, equipment, capital work-in-progress and intangibles.
- The asset build is visible in property, plant and equipment rising to ₹34,322.96 million from ₹19,859.20 million, and depreciation rising 19.6% YoY to ₹674.51 million.
- Joint-venture profit increased 94.3% YoY to ₹38.58 million, partially offsetting the standalone-to-consolidated earnings gap.
Key concerns
- Derived EBITDA declined 19.0% YoY to ₹2,315.77 million despite 12.3% revenue growth, and derived EBITDA margin compressed to 32.0% from 44.4%.
- Power and fuel expense increased to ₹1,283.24 million from ₹414.68 million, rising much faster than revenue and representing the clearest disclosed operating cost pressure.
- Finance costs increased 402.3% YoY to ₹158.14 million as borrowings reached ₹9,500.00 million, reversing the balance sheet from net cash of ₹315.30 million at March 2026 to net debt of ₹7,454.19 million.
- Gases result declined 25.9% YoY to ₹1,600.77 million despite 0.4% revenue growth, indicating significant margin pressure in the core segment.
- Gross margin compressed by approximately 150bps to 78.0%; the filing does not disclose whether the cause was input inflation, pricing or mix.
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