Maithan Alloys Q2 FY27 Results (NSE: MAITHANALL)
Signal: Loss reversed
The read
The operating inflection is real but profit quality is weak: revenue reached ₹611.73 crore, +23.8% YoY, gross margin expanded 330bps to 43.3% and operating EBITDA margin rose 980bps to 12.6%, yet PAT of ₹64.90 crore came against a ₹3.16 crore PBT loss because of a ₹68.06 crore tax credit. This follows the prior quarter's ₹394.26 crore PAT and shows earnings remain highly volatile and investment/tax-accounting dependent.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹611.73 Cr | +23.8% | +7.2% |
| Net profit | ₹64.9 Cr | N/M from -116.47 Cr loss | |
| EPS | ₹22.29 | N/M from negative EPS | |
| EBIT margin | 12.6% |
P&L walk
Revenue increased to ₹611.73 crore, +23.8% YoY and +7.2% QoQ, with gross margin expanding to 43.3%; operating profit improved, but the ₹64.90 crore PAT was entirely tax-led because PBT was a ₹3.16 crore loss.
Segments
Ferro Alloys is the operating driver, contributing ₹611.73 crore of revenue and ₹75.17 crore of segment result; Real Estate had ₹235.07 crore of assets but no current-period revenue or result disclosed.
Key positives
- Revenue from operations rose to ₹611.73 crore, +23.8% YoY and +7.2% QoQ, indicating a sequential recovery after ₹570.56 crore in Q1FY27.
- Gross margin expanded to 43.3%, +330bps YoY, while raw-material-related costs declined to 56.7% of revenue from 60.0%.
- Operating EBITDA margin improved to 12.6% from approximately 2.8% YoY; employee costs fell 38.5% and depreciation fell 4.9%.
Key concerns
- PAT of ₹64.90 crore was tax-led: PBT was a ₹3.16 crore loss and tax expense was a ₹68.06 crore credit.
- Other income was negative ₹54.23 crore in the quarter, highlighting the volatility of the investment portfolio and the disconnect between operating earnings and reported PAT.
- H1FY27 operating cash flow fell to ₹100.68 crore from ₹777.19 crore despite H1FY27 PBT of ₹488.47 crore, indicating weak cash conversion.
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