Mangalam World. Q2 FY27 Results (NSE: MWL)
Signal: Steady quarter
The read
The trajectory remains margin-positive but balance-sheet-intensive: operating margin reached 10.16% versus 8.63% QoQ and PAT rose 31.3% YoY to ₹1,382.94 lakh, yet finance cost climbed 92.9% YoY, net debt increased by ₹24,519.74 lakh since March, and H1 operating cash flow turned negative at ₹(3,721.96) lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹360.4 Cr | +13.6% | +14.0% |
| Net profit | ₹13.83 Cr | +31.3% | |
| EPS | ₹0.47 | +17.5% | |
| EBIT margin | 10.16% |
P&L walk
Standalone revenue increased to ₹36,039.97 lakh, +13.6% YoY and +14.0% QoQ, while the operating margin ratio rose to 10.16% from 8.63% QoQ; PAT reached ₹1,382.94 lakh, +31.3% YoY, but finance cost rose 92.9% YoY to ₹1,788.66 lakh and working-capital investment weakened cash generation.
Segments
The company reports a single operating segment, so no segment-level driver is disclosed; the key divergence is between improved operating profit and weaker cash conversion, with H1 operating cash flow of ₹(3,721.96) lakh despite PAT of ₹2,558.48 lakh.
Key positives
- Revenue rose to ₹36,039.97 lakh, +13.6% YoY and +14.0% QoQ, reaccelerating from the ₹31,621.65 lakh Q1FY27 base.
- Operating margin ratio expanded to 10.16% from 8.63% QoQ, extending the recent margin recovery from 7% in Q2FY26 and 9% in Q1FY27.
- PAT rose 31.3% YoY to ₹1,382.94 lakh despite finance costs increasing 92.9% YoY to ₹1,788.66 lakh.
- PPE increased to ₹10,489.94 lakh from ₹7,755.27 lakh while CWIP reduced to ₹601.57 lakh from ₹1,636.27 lakh, indicating commissioning of recently funded capacity.
Key concerns
- Finance cost rose 92.9% YoY to ₹1,788.66 lakh and debt-equity reached 1.19x versus 0.81x at FY26-end.
- H1 operating cash flow was negative at ₹(3,721.96) lakh versus positive ₹2,962.55 lakh in H1FY26, driven by ₹13,461.24 lakh absorbed into inventories and ₹8,424.07 lakh into receivables.
- Net debt increased to ₹48,041.46 lakh from ₹23,521.72 lakh at 31-Mar-2026, increasing sensitivity to steel-cycle volatility and financing costs.
- EPS growth of 17.5% materially lagged PAT growth of 31.3%; the filing attributes comparatives to the July 2026 share split, requiring per-share growth to be normalized carefully.
Research and educational content only. Not investment advice.