N R Agarwal Inds Q2 FY27 Results (NSE: NRAIL)
Signal: Loss reversed
The read
The operating inflection remains intact: Q2 revenue grew 27.47% YoY and EBITDA margin expanded 332bps to 10.91%, helped by a 186bps gross-margin expansion and operating costs growing 20.23%, but the trajectory softened sequentially as PAT fell 11.54% and EBITDA margin declined 57bps from Q1FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹668.81 Cr | +27.47% | +3.38% |
| Net profit | ₹30.94 Cr | N/M from a year-ago loss | |
| EPS | ₹18.18 | N/M from a year-ago loss | |
| EBIT margin | 10.91% |
P&L walk
Revenue rose to 66,880.96 lakh, +27.47% YoY and +3.38% QoQ, while gross margin expanded 186bps YoY and EBITDA margin widened 332bps to 10.91%; PAT recovered to 3,094.08 lakh from a year-ago loss but fell 11.54% QoQ as the operating base softened sequentially.
Key positives
- Revenue reached 66,880.96 lakh, up 27.47% YoY and 3.38% QoQ, sustaining positive sequential growth.
- Gross margin expanded 186bps YoY to 34.85%; cost of materials consumed fell to 66.72% of revenue from 67.76% a year ago, although the filing does not disclose the driver.
- EBITDA margin expanded 332bps YoY to 10.91%; derived EBITDA grew 83.21% versus revenue growth of 27.47%, while employee costs grew 14.18% and finance costs declined 8.29%.
- H1 operating cash flow remained positive at 7,805.84 lakh and net debt was broadly stable at 78,527.66 lakh versus 78,396.70 lakh at 31 March 2026.
Key concerns
- PAT declined 11.54% QoQ to 3,094.08 lakh and EBITDA margin fell 57bps sequentially to 10.91%, indicating the Q2 profit run-rate was below Q1FY27.
- Working capital absorbed cash in H1FY27, with inventory increasing by 4,959.38 lakh and trade receivables increasing by 3,628.12 lakh; H1 operating cash flow fell 17.71% YoY.
- Depreciation rose 66.37% YoY to 1,820.69 lakh in Q2, warranting monitoring of asset productivity as PPE declined while CWIP increased.
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