Meghmani Organi. Q2 FY27 Results (NSE: MOL)
Signal: Growth reaccelerated
The read
Q2FY27 marks a revenue recovery to ₹65,820.88 lakh, up 25.9% YoY, but the margin arc has weakened: raw-material cost rose 533bps as a share of revenue and gross margin fell to 33.4%; the 5.6% PAT growth to ₹4,532.16 lakh was supported by other income of ₹2,068.90 lakh and lower finance cost rather than operating-margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹658.21 Cr | 25.9% | 18.0% |
| Net profit | ₹45.32 Cr | 5.6% | |
| EPS | ₹1.78 | 5.3% |
P&L walk
Revenue increased to ₹65,820.88 lakh, +25.9% YoY and +18.0% QoQ, but raw-material cost rose to 66.6% of revenue from 61.3% YoY, compressing gross margin to 33.4% from 38.7%; PAT still rose 5.6% to ₹4,532.16 lakh, supported partly by other income of ₹2,068.90 lakh, up 69.2% YoY.
Key positives
- Revenue from operations increased 25.9% YoY to ₹65,820.88 lakh and 18.0% QoQ, reversing the recent standalone sequential slowdown.
- Employee benefits rose 12.2% YoY and other expenses rose 16.7%, both below the 25.9% revenue growth rate.
- Finance costs declined 40.7% YoY to ₹1,115.14 lakh, supporting pre-tax profitability.
- EPS rose 5.3% YoY to ₹1.78, broadly tracking the 5.6% PAT growth without a disclosed dilution signal.
Key concerns
- Gross margin fell 533bps YoY to 33.4% as material cost increased to 66.6% of revenue from 61.3%; the filing does not disclose a pricing, mix or input-cost explanation.
- PAT rose only 5.6% despite 25.9% revenue growth, indicating that gross-margin deterioration absorbed much of the operating benefit from higher sales.
- PAT declined 21.3% QoQ to ₹4,532.16 lakh after the previous quarter's ₹5,759.90 lakh, showing that the margin-led earnings surge has not yet been sustained.
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