Lords Chloro Q2 FY27 Results (NSE: LORDSCHLO)
Signal: Margin pressure
The read
The trajectory has shifted from Q1FY27's 21.5% EBITDA margin to 16.21% in Q2FY27: revenue accelerated to 17.35% YoY, but gross margin contracted 459bps as raw-material cost reached 31.78% of revenue and power cost grew 31.48% YoY; PAT consequently fell 0.25% YoY and EPS fell 6.25%, making cost absorption and the return on the expanding PPE base the key inflection to monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.4 Cr | +17.35% | +8.51% |
| EBIT | ₹14.41 Cr | -3.36% | |
| Net profit | ₹9.02 Cr | -0.25% | |
| EPS | ₹3.15 | -6.25% | |
| EBIT margin | 16.21% |
P&L walk
Standalone revenue increased 17.35% YoY to ₹11,540.35 lakh, but gross margin contracted 459bps as raw-material cost rose to 31.78% of revenue and power cost reached 32.74%; EBITDA margin fell 731bps to 16.21%, leaving PAT broadly flat at ₹901.52 lakh despite lower depreciation.
Key positives
- Revenue from operations increased 17.35% YoY to ₹11,540.35 lakh and 8.51% QoQ, indicating continued top-line momentum despite the margin setback.
- H1FY27 operating cash flow was ₹4,907.20 lakh versus ₹2,623.04 lakh in FY26, providing internal funding support while the company invested ₹5,704.81 lakh in PPE and CWIP.
- PPE increased to ₹30,460.28 lakh from ₹25,007.55 lakh and CWIP reduced to ₹2,413.35 lakh from ₹4,384.62 lakh, indicating movement of the capex cycle toward commissioned assets.
Key concerns
- Gross margin fell 459bps YoY to 68.22% as raw-material cost increased to 31.78% of revenue from 27.21%; the filing does not disclose the cause or degree of pass-through.
- Power and fuel charges rose 31.48% YoY to ₹3,778.75 lakh, faster than revenue growth, and reached 32.74% of revenue versus 29.20% a year earlier.
- EBITDA declined 19.11% YoY to ₹1,871.16 lakh and EBITDA margin fell 731bps to 16.21%, despite revenue growth of 17.35%; this is a variable-cost absorption issue rather than operating leverage.
- Finance cost increased 166.88% YoY to ₹274.02 lakh and net debt rose to ₹1,4595.42 lakh from ₹1,3250.31 lakh at March 2026.
- EPS fell 6.25% YoY to ₹3.15 while PAT was almost flat, reflecting dilution as paid-up share capital increased to ₹2,865.39 lakh from ₹2,515.39 lakh.
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