Powerica Ltd H1FY27 Results (NSE: POWERICA)
Signal: Margin expansion
The read
H1FY27 marks a revenue-growth recovery to 21.8% from Q4FY26's 10.9%, with standalone EBITDA margin improving 100bps to 14.93%; however, gross margin contracted 41bps, PAT growth was aided by finance-cost and tax-rate benefits, and EPS growth lagged PAT because of IPO dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,493.26 Cr | +21.8% | N/A |
| Net profit | ₹124.44 Cr | +59.5% | |
| EPS | ₹9.81 | +39.0% | |
| EBIT margin | 14.93% |
P&L walk
Standalone H1FY27 revenue rose 21.8% to ₹1,493.26 Cr, while EBITDA margin expanded 100bps to 14.93%; PAT grew 59.5% to ₹124.44 Cr, helped by lower finance cost and a lower effective tax rate, but EPS growth of 39.0% lagged PAT because the post-IPO share base expanded.
Key positives
- Standalone H1FY27 revenue reached ₹1,493.26 Cr, up 21.8% YoY, accelerating from Q4FY26 revenue growth of 10.9%.
- EBITDA margin expanded 100bps to 14.93%, while employee and other expenses grew 11.8%, below revenue growth of 21.8%.
- Net debt declined ₹448.61 Cr to ₹254.17 Cr as borrowings fell and ₹525.00 Cr of IPO proceeds were used for debt repayment.
- Finance cost fell 80.7% to ₹2.34 Cr, providing a meaningful support to PBT and PAT growth.
Key concerns
- EPS grew 39.0% to ₹9.81, materially below PAT growth of 59.5%, reflecting the increase in paid-up equity capital after the IPO.
- Gross margin contracted 41bps to 28.92% despite revenue growth of 21.8%, indicating limited gross-profit conversion from the top-line increase.
- Operating cash flow declined 4.4% to ₹155.27 Cr even as PAT rose 59.5%, while inventory-related working-capital movements remained a cash drag.
- Depreciation increased 45.7% to ₹77.67 Cr while PPE declined, increasing the need to monitor the conversion of CWIP into productive assets.
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