Lloyds Metals Q2 FY27 Results (NSE: LLOYDSME)
Signal: Margin expansion
The read
The trajectory remains expansionary but more capital-intensive: Q2FY27 revenue rose 62.2% YoY and EBITDA margin expanded 418bps to 37.22%, led by steel and value-added products, while gross borrowings reached ₹9,581.26 crore and sequential revenue and margin declined 23.7% and 195bps respectively.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,132.03 Cr | +62.2% | -23.7% |
| EBIT | ₹1,418.73 Cr | +80.2% | |
| Net profit | ₹1,111.9 Cr | +83.6% | |
| EPS | ₹19.75 | +82.9% | |
| EBIT margin | 37.22% |
P&L walk
Q2FY27 revenue rose 62.2% YoY but fell 23.7% QoQ, with steel and value-added products driving growth; EBITDA margin expanded 418bps YoY to 37.22% but contracted 195bps sequentially, while PAT rose 83.6% YoY to ₹1,111.90 crore.
Segments
Steel and related value-added products drove the quarter, with revenue up 144.5% YoY to ₹2,934.95 crore and segment result up 150.4% to ₹956.75 crore, while mining revenue declined 4.0% to ₹1,531.49 crore and mining result rose 14.1% to ₹461.98 crore.
Key positives
- Steel and related value-added products revenue increased 144.5% YoY to ₹2,934.95 crore and segment result increased 150.4% to ₹956.75 crore, making steel the principal growth engine.
- Q2FY27 operating EBITDA margin expanded 418bps YoY to 37.22%, while EBIT increased 80.2% YoY to ₹1,418.73 crore.
- H1FY27 operating cash flow increased to ₹3,212.17 crore from ₹1,135.40 crore, covering part of the ₹6,052.32 crore property, plant and equipment outlay.
Key concerns
- Gross borrowings rose to ₹9,581.26 crore from ₹5,419.39 crore at 31 March 2026, lifting the debt-equity ratio to 0.66 from 0.46.
- Sequential revenue fell 23.7% and operating EBITDA margin contracted 195bps to 37.22%, interrupting the prior margin expansion seen in Q1FY27.
- H1 inventory days increased to 36.33 from 24.30 YoY, while finance costs increased 416.5% YoY to ₹209.55 crore.
- EPS growth of 98.2% in H1FY27 lagged PAT growth of 112.8%, indicating dilution or a larger equity base.
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