Orient Cement Q2 FY27 Results (NSE: ORIENTCEM)
Signal: Revenue declined
The read
The key inflection is negative: Q2 revenue fell 12.1% YoY to ₹565 crore after Q1 revenue had already fallen 30.3% YoY, while gross margin compressed 770bps YoY to 69.0% and EBITDA margin fell to 13.3% from an estimated 25.7%; lower depreciation supported reported profit, but operating momentum deteriorated sequentially with PAT down 58.4% QoQ to ₹32 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹565 Cr | -12.1% | -6.5% |
| EBIT | ₹32 Cr | -50.0% | |
| Net profit | ₹32 Cr | -34.7% | |
| EPS | ₹1.56 | -34.7% | |
| EBIT margin | 13.3% |
P&L walk
Standalone-only results: Q2 revenue fell 12.1% YoY and 6.5% QoQ to ₹565 crore; gross margin compressed 770bps YoY as raw-material intensity rose to 30.8% from 22.7%, while EBITDA margin fell to 13.3% and PAT declined 34.7% to ₹32 crore.
Key positives
- Operating cash flow was ₹533 crore in H1FY27 versus cash usage of ₹74 crore in H1FY26, driven by a ₹529 crore reduction in trade receivables.
- Finance costs fell 50.0% YoY to ₹1 crore, limiting the drag from borrowings despite gross borrowings rising to ₹40 crore.
- PAT-to-EPS conversion was clean: PAT fell 34.7% YoY and EPS also fell 34.7%, with no evidence of material dilution or rising minority interest.
Key concerns
- Revenue fell 12.1% YoY to ₹565 crore and 6.5% QoQ, following Q1FY27 revenue growth of -30.3% YoY, indicating continued contraction in the operating base.
- Gross margin compressed 770bps YoY to 69.0% as raw-material cost rose to 30.8% of revenue from 22.7%; the filing does not disclose the cause, and the cement business absorbed a materially higher cost burden.
- EBITDA margin fell 1,240bps YoY to 13.3% and 1,050bps QoQ, while derived EBITDA declined 54.5% YoY to ₹75 crore.
- Power and fuel costs were ₹201 crore, or 35.6% of revenue, versus 33.0% YoY and 30.6% QoQ, adding to cost intensity.
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