M & B Engineer. Q2 FY27 Results (NSE: MBEL)
Signal: Growth reaccelerated
The read
The trajectory improved on growth but not on margins: Q2FY27 revenue growth accelerated to 25.4% YoY from 22.3% in Q1FY27, while EBITDA margin fell 74bps YoY to 11.26% and 102bps sequentially; PAT growth of 32.9% was aided by finance costs falling 28.2% YoY rather than by operating-margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹384.67 Cr | 25.4% | 32.1% |
| Net profit | ₹29.49 Cr | 32.9% | |
| EPS | ₹5.12 | 25.8% | |
| EBIT margin | 11.26% |
P&L walk
Revenue increased to ₹38,467.47 lakh, +25.4% YoY and +32.1% QoQ, but EBITDA margin eased to 11.26% from 12.00% YoY as raw-material intensity rose to 70.45% from 69.61%; PAT nevertheless grew 32.9% to ₹2,949.40 lakh, helped by lower finance costs and limited other-income growth.
Key positives
- Revenue reached ₹38,467.47 lakh, growing 25.4% YoY and accelerating from 22.3% YoY in Q1FY27.
- PAT rose 32.9% YoY to ₹2,949.40 lakh, with finance costs down 28.2% YoY to ₹313.20 lakh.
- Employee benefits and other expenses grew 11.4% YoY versus revenue growth of 25.4%, providing partial fixed-cost absorption despite lower gross margin.
Key concerns
- EBITDA margin declined 74bps YoY to 11.26% and 102bps QoQ, extending the recent pattern of inconsistent margin performance.
- Raw-material intensity increased to 70.45% of revenue from 69.61% YoY, while gross margin fell 84bps to 31.13%; the filing does not disclose the cause.
- H1 operating cash flow was only ₹452.45 lakh against H1 PAT of ₹5,139.64 lakh, with working-capital movements including ₹929.33 lakh absorbed by inventories and ₹4,654.83 lakh by trade payables.
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