Pokarna Q2 FY27 Results (NSE: POKARNA)
Signal: Margin expansion
The read
The key inflection is the end of the recent revenue decline streak: consolidated revenue grew 36.0% YoY after seven consecutive quarters of decline, led by Quartz Surfaces, but the quality of the rebound is mixed because gross margin fell 883bps as raw-material intensity rose to 29.36% and standalone operations remained loss-making at ₹(190.56) lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹161.1 Cr | 36.0% | -15.0% |
| EBIT | ₹52.4 Cr | 177.8% | |
| Net profit | ₹34.27 Cr | 441.1% | |
| EPS | ₹11.05 | 441.7% | |
| EBIT margin | 39.91% |
P&L walk
Consolidated revenue from operations rose to ₹16,109.67 lakh, +36.0% YoY but -15.0% QoQ; EBITDA margin expanded to 39.91% from 26.33% despite gross margin compression to 70.64% from 79.47%, while PAT rose to ₹3,426.71 lakh from ₹633.29 lakh.
Segments
Quartz Surfaces drove the consolidated rebound with revenue of ₹15,288.55 lakh, +34.3% YoY, and segment result of ₹6,505.88 lakh, +89.5%, while Granites remained loss-making at ₹(76.42) lakh despite a 76.0% YoY improvement.
Key positives
- Consolidated revenue from operations rose to ₹16,109.67 lakh, +36.0% YoY, reversing the recent decline trend.
- Quartz Surfaces segment result rose to ₹6,505.88 lakh, +89.5% YoY, materially outpacing segment revenue growth of 34.3%.
- EBITDA margin expanded to 39.91% from 26.33%, with EBITDA growth of approximately 106.1% versus revenue growth of 36.0%; other expenses declined 2.1% and depreciation declined 4.0% YoY.
- Operating cash flow increased to ₹15,068.27 lakh in H1FY27 from ₹8,807.50 lakh in H1FY26.
Key concerns
- Gross margin compressed 883bps YoY to 70.64% as raw-material consumption rose to 29.36% of revenue from operations versus 20.52%; revenue grew 36.0% while material cost rose 94.5%, indicating cost absorption.
- Granites remained loss-making at ₹(76.42) lakh at the segment-result level despite revenue growth of 76.6% YoY.
- Standalone operations reported a ₹(190.56) lakh PAT loss versus a ₹55.36 lakh profit in the preceding quarter, highlighting the consolidated business's dependence on subsidiaries.
- Employee benefits expense rose 55.6% YoY to ₹2,380.08 lakh, faster than revenue growth of 36.0%.
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