Plastiblends (I) Q2 FY27 Results (NSE: PLASTIBLEN)
Signal: Steady quarter
The read
The trajectory remains positive on demand and mix: Q2 revenue growth accelerated to 18.81% YoY from Q1's 11.01%, while exports and engineering plastics supported realisations. The near-term inflection is sequential margin pressure, with EBITDA margin falling 280bps QoQ to 8.18% as the company absorbed elevated costs; management expects to pass some costs through in ensuing quarters, while the 5.2 MW solar project should help offset higher Gujarat fuel surcharges.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹228.84 Cr | 18.81% | 3.26% |
| Net profit | ₹10.65 Cr | 43.28% | |
| EPS | ₹4.1 | 43.36% | |
| EBIT margin | 8.18% |
P&L walk
Standalone Q2 revenue grew 18.81% YoY and 3.26% QoQ, while EBITDA grew 30.29% YoY but fell 23.10% QoQ as elevated input, freight and energy costs were partly absorbed; PAT rose 43.28% YoY but declined 28.74% QoQ.
Key positives
- Revenue from operations reached 22,883.85 lakh, up 18.81% YoY and 3.26% QoQ, with management attributing growth to improved price realisations, exports, new markets and better product mix.
- EBITDA increased 30.29% YoY to 1,872 lakh and EBITDA margin expanded 72bps YoY to 8.18% despite elevated costs.
- H1 revenue rose 14.84% YoY to 45,044.74 lakh and H1 EBITDA rose 41.82% YoY to 4,306 lakh, taking H1 EBITDA margin to 9.56%, up 182bps.
- The 5.2 MW Gujarat solar open access project was commissioned in September 2026 and is intended to offset higher fuel surcharges.
- Engineering plastics is growing and management expects its momentum to remain strong; exports benefited from new markets and a better product mix.
Key concerns
- EBITDA margin fell 280bps QoQ to 8.18% and PAT fell 28.74% QoQ to 1,065.44 lakh as raw-material, freight, power and fuel-surcharge costs remained elevated.
- The company explicitly absorbed part of elevated costs to protect customer relationships and market share, creating a risk that pass-through in ensuing quarters may be delayed or incomplete.
- Operating cash flow was only 115.46 lakh in H1FY27 against H1 PAT of 2,560.46 lakh, while inventories increased to 18,278.85 lakh from 15,369.76 lakh.
- Other income declined 26.53% YoY to 257.74 lakh, so the 43.28% PAT growth was not driven by higher treasury or non-operating income.
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