Paramount Comm. Q2 FY27 Results (NSE: PARACABLES)
Signal: Margin expansion
The read
The operating recovery is becoming visible: EBITDA margin expanded to 7.3% from 1.4% in the comparable filing period as revenue grew 30.9% and other expenses fell 10.4%, but gross margin compressed 162bps because raw-material cost rose to 77.1% of revenue, while finance costs rose 92.0% and dilution caused EPS growth to trail PAT growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹560.4 Cr | +30.9% | +5.9% |
| EBIT | ₹40.28 Cr | +83.8% | |
| Net profit | ₹24.24 Cr | +82.0% | |
| EPS | ₹0.74 | +72.1% | |
| EBIT margin | 7.3% |
P&L walk
Revenue accelerated to ₹560.40 crore, +30.9% YoY and +5.9% QoQ, while EBITDA rose to ₹40.91 crore from ₹6.20 crore as other expenses fell 10.4% YoY; gross margin nevertheless contracted 162bps because material costs rose faster than revenue.
Segments
No reportable segments were disclosed; consolidated and standalone revenue were both ₹560.40 crore and PAT was ₹24.24 crore, confirming that subsidiaries did not materially alter the group result.
Key positives
- Revenue reached ₹560.40 crore, +30.9% YoY and +5.9% QoQ, accelerating from the recent Q1FY27 growth rate of 17.3%.
- EBITDA margin expanded 585bps YoY to 7.3%; EBITDA grew approximately 560% to ₹40.91 crore versus revenue growth of 30.9%, a +529 percentage-point growth gap, supported by employee-cost growth of 22.1%, depreciation growth of 12.7% and a 10.4% decline in other expenses.
- PAT rose 82.0% YoY to ₹24.24 crore even though other income fell to ₹3.80 crore from ₹19.64 crore, indicating that the profit rebound was mainly operational.
- H1 operating cash outflow improved to -₹31.89 crore from -₹57.96 crore, although it remained negative.
Key concerns
- Gross margin compressed 162bps YoY to 25.3% as raw-material cost increased to 77.1% of revenue from 73.1%; revenue grew 30.9% while material cost grew about 38.1%, indicating cost absorption rather than full pass-through.
- Finance costs increased 92.0% YoY to ₹7.89 crore, while borrowings reached ₹131.96 crore at 30 September 2026.
- EPS growth of 72.1% lagged PAT growth of 82.0% after the preferential allotment, warrants and employee option issuance expanded the equity base.
- Operating cash flow remained negative at -₹31.89 crore in H1FY27 as inventory absorbed ₹44.55 crore and other financial and non-financial assets absorbed ₹29.72 crore.
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