Orient Ceratech Q2 FY27 Results (NSE: ORIENTCER)
Signal: Margin pressure
The read
Q2FY27 shows a revenue recovery to ₹12,687.65 lakh, up 13.8% YoY, but the margin trajectory reversed sharply: approximate EBITDA margin fell to 9.1% from 10.3% YoY and 16.1% in Q1FY27, while PAT declined 9.4% to ₹678.11 lakh; the gross-margin tailwind was outweighed by operating-cost inflation and weak cash conversion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹126.88 Cr | +13.8% | +26.1% |
| EBIT | ₹8.27 Cr | -2.8% | |
| Net profit | ₹6.78 Cr | -9.4% | |
| EPS | ₹0.57 | -8.1% | |
| EBIT margin | 9.1% |
P&L walk
Consolidated revenue increased 13.8% YoY to ₹12,687.65 lakh, but EBITDA declined 7.4% to approximately ₹1,155.71 lakh as employee, power and other expenses rose faster than sales; PAT fell 9.4% to ₹678.11 lakh.
Segments
The company has only one reportable segment, Manufacturing & Trading of Ceramic and related products; the consolidated PAT of ₹678.11 lakh was ₹246.43 lakh above standalone PAT of ₹431.68 lakh, indicating a material subsidiary contribution, including Orient Advanced Materials FZE's reported ₹47.31 lakh quarterly profit.
Key positives
- Revenue from operations increased 13.8% YoY to ₹12,687.65 lakh and 26.1% QoQ, reversing the 4.6% growth rate recorded in Q1FY27.
- Gross margin expanded 1,266bps YoY to 62.7%, while raw material cost declined to 33.1% of revenue from 34.7%.
- Consolidated subsidiary contribution lifted PAT to ₹678.11 lakh versus standalone PAT of ₹431.68 lakh; the UAE subsidiary reported ₹47.31 lakh quarterly profit.
Key concerns
- Approximate EBITDA fell 7.4% YoY to ₹1,155.71 lakh despite 13.8% revenue growth, with EBITDA margin contracting 120bps YoY to 9.1%.
- Other expenses increased 98.2% YoY to ₹3,784.00 lakh and power and fuel rose 23.6% to ₹1,737.49 lakh, offsetting the gross-margin improvement.
- H1FY27 operating cash flow was negative ₹4,451.25 lakh versus positive ₹2,914.45 lakh in H1FY26, driven by ₹4,243.21 lakh receivables and ₹3,320.02 lakh inventory absorption.
Research and educational content only. Not investment advice.