Panama Petrochem Q2 FY27 Results (NSE: PANAMAPET)
Signal: Revenue declined
The read
The quarter marks a profit rebound without revenue momentum: consolidated revenue fell 0.7% YoY to ₹1,722.84 crore while PAT rose 303.3% to ₹213.71 crore, gross margin expanded by approximately 1,610bps on lower raw-material intensity, and EPS growth of 16.7% materially lagged PAT growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,722.84 Cr | -0.7% | -0.7% |
| Net profit | ₹213.71 Cr | +303.3% | |
| EPS | ₹10.22 | +16.7% | |
| EBIT margin | N/A |
P&L walk
Revenue of ₹1,722.84 crore declined 0.7% YoY and 0.7% QoQ, while PAT rose 303.3% YoY to ₹213.71 crore; the profit improvement materially outpaced sales and EPS rose only 16.7% to ₹10.22.
Segments
The group subsidiary was material, contributing ₹685.00 crore of revenue and ₹91.75 crore of PAT in the quarter; consolidated PAT of ₹213.71 crore exceeded standalone PAT of ₹151.59 crore, indicating that earnings sit meaningfully outside the parent.
Key positives
- Consolidated gross margin expanded approximately 1,610bps YoY to 32.5%, with raw-material consumption declining to 61.6% of revenue from approximately 83.3%; the filing does not disclose the precise driver.
- The subsidiary contributed ₹685.00 crore of revenue and ₹91.75 crore of PAT, providing a substantial earnings contribution beyond the standalone parent.
- Standalone revenue increased 106.1% YoY to ₹1,038.00 crore and standalone PAT increased 382.8% YoY to ₹151.59 crore.
Key concerns
- Consolidated revenue declined 0.7% YoY to ₹1,722.84 crore and 0.7% QoQ, so the large PAT increase was not accompanied by top-line acceleration.
- EPS increased only 16.7% YoY to ₹10.22 while PAT increased 303.3% to ₹213.71 crore, flagging a material PAT-to-EPS divergence.
- Consolidated PAT declined 30.8% QoQ from ₹308.91 crore, indicating that the earnings surge has not yet translated into sequential momentum.
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