Mazda Q2 FY27 Results (NSE: MAZDA)
Signal: Margin expansion
The read
The key inflection is operating margin: EBITDA margin expanded to 27.3% from 21.7% a year ago and 13.4% in Q1FY27, as revenue grew 63.6% YoY while employee costs rose 14.9% and depreciation rose 8.4%; however, the 320bps gross-margin compression and decline in Engineering segment result warrant confirmation in subsequent quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹83.17 Cr | 63.6% | 3.5% |
| EBIT | ₹21.61 Cr | 116.2% | |
| Net profit | ₹16.17 Cr | 113.3% | |
| EPS | ₹8.07 | 112.9% | |
| EBIT margin | 27.3% |
P&L walk
Revenue rose 63.6% YoY to ₹8,317.21 lakh, while gross margin compressed 320bps to 56.7%; EBITDA increased 106.0% to ₹2,273.09 lakh and margin expanded 563bps to 27.3% as employee and depreciation costs grew far slower than revenue, lifting PAT 113.3% to ₹1,616.94 lakh.
Segments
Engineering drove the group with ₹7,039.25 lakh of revenue, up 65.5% YoY, but its reported segment result fell 41.9% to ₹2,447.93 lakh; Food revenue rose 54.1% to ₹1,277.96 lakh while segment result increased 10.1% to ₹159.14 lakh.
Key positives
- Revenue reached ₹8,317.21 lakh, up 63.6% YoY and 3.5% QoQ, with Engineering revenue up 65.5% YoY to ₹7,039.25 lakh.
- EBITDA grew 106.0% to ₹2,273.09 lakh versus revenue growth of 63.6%, a 42.4pp gap; employee costs rose 14.9% and depreciation 8.4%, supporting a 563bps EBITDA-margin expansion to 27.3%.
- Raw material cost increased 20.9% YoY versus revenue growth of 63.6%, indicating substantial revenue growth ahead of material-cost growth despite gross-margin compression.
- Operating cash flow turned positive at ₹2,315.68 lakh in H1FY27 from negative ₹340.33 lakh in H1FY26.
- The company remained debt-free, with borrowings shown as nil and finance cost down 23.1% YoY to ₹19.30 lakh.
Key concerns
- Gross margin compressed 320bps YoY to 56.7% despite 63.6% revenue growth; the filing does not disclose whether the movement reflects pricing, mix or input-cost dynamics.
- Engineering segment result declined 41.9% YoY to ₹2,447.93 lakh even as Engineering revenue rose 65.5%, creating a material segment-profitability disconnect.
- Food segment result rose only 10.1% YoY to ₹159.14 lakh against 54.1% revenue growth, indicating weaker incremental profitability.
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