PPAP Automotive Q2 FY27 Results (NSE: PPAP)
Signal: Loss reversed
The read
The key inflection is revenue recovery without margin recovery: consolidated revenue rose 29.8% YoY to ₹17,782.66 lakh, but gross margin compressed 408bps to 40.1% and operating margin remained around 8.8%; standalone PAT of ₹348.72 lakh was diluted by loss-making subsidiaries, while H1 operating cash flow fell 34.6% to ₹1,514.54 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹177.83 Cr | +29.8% | +13.7% |
| EBIT | ₹6.43 Cr | N/A | |
| Net profit | ₹2.47 Cr | Turned positive from -4.56 lakh | |
| EPS | ₹1.75 | Turned positive from -0.03 | |
| EBIT margin | 8.8% |
P&L walk
Consolidated revenue increased to ₹17,782.66 lakh, +29.8% YoY and +13.7% QoQ, but gross margin contracted to 40.1% from 44.1% as raw-material cost rose to 63.6% of revenue from 55.2%; operating margin was 8.8%, while PAT recovered to ₹247.39 lakh from a ₹4.56 lakh loss.
Segments
The consolidated group lagged the parent: standalone PAT was ₹348.72 lakh versus consolidated PAT of ₹247.39 lakh, implying subsidiary losses diluted the parent's quarter-level earnings.
Key positives
- Consolidated revenue rose 29.8% YoY to ₹17,782.66 lakh and 13.7% QoQ, a clear sequential recovery from ₹15,637.86 lakh.
- Employee plus other expenses grew 10.9% YoY versus 29.8% revenue growth, supporting a sequential 99bps operating-margin improvement.
- Consolidated PAT recovered to ₹247.39 lakh from a ₹4.56 lakh year-ago loss, while basic EPS turned positive at ₹1.75.
- Standalone H1 revenue rose 31.8% YoY to ₹30,931.07 lakh and H1 PAT rose to ₹578.82 lakh from ₹156.85 lakh.
Key concerns
- Gross margin compressed 408bps YoY to 40.1% as raw-material cost increased to 63.6% of revenue from 55.2%, indicating cost absorption or adverse mix; the filing does not disclose the precise driver.
- Consolidated PAT of ₹247.39 lakh was ₹101.33 lakh below standalone PAT of ₹348.72 lakh because subsidiaries diluted group earnings.
- H1 operating cash flow fell to ₹1,514.54 lakh from ₹2,315.86 lakh even as H1 PAT turned positive at ₹333.94 lakh, while inventory increased 19.1% to ₹11,513.57 lakh.
- Borrowings rose to ₹21,636.85 lakh and net debt increased by ₹1,478.72 lakh from March 2026, increasing balance-sheet sensitivity while margins remain below the prior-year level.
Research and educational content only. Not investment advice.