Lux Industries Q2 FY27 Results (NSE: LUXIND)
Signal: Revenue declined
The read
The trajectory improved at the margin but not yet at the top line: consolidated revenue fell 7.3% YoY to ₹718.47 Cr, while EBITDA margin expanded 83bps to 7.1% and PAT rose 3.9% to ₹23.95 Cr; this is the second consecutive quarter of YoY margin expansion after three quarters of contraction, but Q2 margin at 7.1% remained below Q1FY27's 8.2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹718.47 Cr | -7.3% | +18.0% |
| EBIT | ₹43.08 Cr | +3.2% | |
| Net profit | ₹23.95 Cr | +3.9% | |
| EPS | ₹7.94 | +1.8% | |
| EBIT margin | 7.1% |
P&L walk
Revenue from operations declined to ₹718.47 Cr, -7.3% YoY but +18.0% QoQ; gross margin compressed 80bps YoY, while EBITDA rose 6.7% YoY to ₹51.37 Cr and margin expanded 83bps to 7.1%, supporting PAT growth of 3.9% to ₹23.95 Cr.
Segments
There is no segment table; consolidated PAT of ₹23.95 Cr was only ₹0.02 Cr above standalone PAT of ₹23.93 Cr, so subsidiaries had no material effect on group earnings in Q2FY27.
Key positives
- Consolidated EBITDA increased 6.7% YoY to ₹51.37 Cr while revenue declined 7.3%, and EBITDA margin expanded 83bps to 7.1%.
- Operating cash flow turned positive at ₹53.78 Cr in H1FY27 versus negative ₹228.33 Cr in H1FY26.
- Consolidated net debt declined to approximately ₹483.69 Cr from ₹489.23 Cr at March 31, 2026.
- EPS rose 1.8% YoY to ₹7.94, broadly tracking the 1.9% increase in shareholder-attributable profit.
Key concerns
- Revenue from operations declined 7.3% YoY to ₹718.47 Cr after Q1FY27 growth of only 0.8%, indicating a sharp sequential recovery but weak year-on-year demand momentum.
- Gross margin compressed 80bps YoY to 53.6% as raw-material and purchase costs rose to 54.2% of revenue from 49.1%; the filing does not disclose the cause.
- Finance costs rose 11.7% YoY to ₹11.47 Cr despite the 7.3% revenue decline.
- Inventory increased to ₹1,101.88 Cr from ₹993.67 Cr at March 31, 2026, keeping working-capital intensity elevated.
Research and educational content only. Not investment advice.