Pasupati Acrylon Q2 FY27 Results (NSE: PASUPTAC)
Signal: Margin expansion
The read
The key inflection is margin-led rather than demand-led: Q2 revenue fell 2.0% YoY, but gross margin expanded 433bps to 33.5%, EBITDA margin rose 643bps to 17.2% and PAT increased 78.4% to ₹32.01 Cr. Profit growth also decelerated from Q1FY27's 133.2% YoY, while Distillery remained the principal revenue drag.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹274.74 Cr | -2.0% | +15.3% |
| EBIT | ₹44.12 Cr | +65.6% | |
| Net profit | ₹32.01 Cr | +78.4% | |
| EPS | ₹3.59 | +78.6% | |
| EBIT margin | 17.2% |
P&L walk
Standalone Q2FY27 revenue declined 2.0% YoY to ₹274.74 Cr, but lower material intensity lifted gross margin to 33.5% and EBITDA margin to 17.2%; finance cost and depreciation also fell, taking PAT to ₹32.01 Cr, up 78.4% YoY.
Segments
Fibre drove the group with ₹170.71 Cr revenue and ₹28.78 Cr segment result, up 23.7% and 170.0% YoY respectively; Distillery dragged revenue, falling 39.1% YoY to ₹70.38 Cr, although it still contributed ₹10.92 Cr of segment result.
Key positives
- Fibre revenue rose 23.7% YoY to ₹170.71 Cr and segment result increased 170.0% to ₹28.78 Cr, making it the main earnings driver.
- Gross margin expanded 433bps YoY to 33.5% as raw-material and inventory cost declined to 66.5% of revenue from 71.0%.
- Finance cost fell 66.5% YoY to ₹1.64 Cr, helping EBIT of ₹44.12 Cr convert into PAT of ₹32.01 Cr.
- EPS grew 78.6% YoY to ₹3.59, closely tracking PAT growth and showing no material dilution.
Key concerns
- Consolidated-equivalent standalone revenue declined 2.0% YoY to ₹274.74 Cr, so the profit recovery is not yet supported by broad-based top-line growth.
- Distillery revenue fell 39.1% YoY to ₹70.38 Cr, offsetting stronger Fibre and CPP Film performance.
- Operating cash flow declined 17.9% YoY to ₹22.11 Cr in H1FY27 despite PAT rising to ₹59.40 Cr, warranting monitoring of working-capital conversion.
Research and educational content only. Not investment advice.