Premier Polyfilm Q2 FY27 Results (NSE: PREMIERPOL)
Signal: Steady quarter
The read
The trajectory is still growth-positive but less profitable: Q2 revenue growth accelerated to 38.3% YoY from Q1's 34.4%, while derived EBITDA margin fell to 12.5% from Q1's 14.0% and gross margin compressed 592bps YoY as raw material intensity rose to 58.9% of total income. The key inflection is growth continuing alongside a renewed input-cost absorption problem, with CWIP rising to ₹397 lakh ahead of depreciation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.06 Cr | +38.3% | +15.0% |
| Net profit | ₹9.81 Cr | +22.5% | |
| EPS | ₹0.94 | +23.7% | |
| EBIT margin | N/A |
P&L walk
Revenue from operations increased to ₹11,506 lakh, up 38.3% YoY and 15.0% QoQ, but material and purchase costs grew faster than revenue, compressing gross margin by 592bps YoY; derived EBITDA rose 18.2% YoY to ₹1,453 lakh while EBITDA margin fell 210bps, and PAT increased 22.5% to ₹981 lakh.
Key positives
- Revenue from operations reached ₹11,506 lakh, up 38.3% YoY and 15.0% QoQ, accelerating from Q1FY27 growth of 34.4%.
- H1FY27 revenue from operations rose 36.6% YoY to ₹21,512 lakh and H1 PAT rose 34.8% to ₹1,889 lakh.
- Employee and other operating expenses grew 21.1% YoY versus 38.1% growth in total income, providing partial cost absorption despite the raw-material headwind.
- Operating cash flow was positive at ₹1,322 lakh in H1FY27, while cash and cash equivalents increased to ₹690 lakh from ₹504 lakh.
Key concerns
- Gross margin compressed 592bps YoY to 39.9% as raw material cost increased to 58.9% of total income from 49.5%; the filing does not identify the cause.
- Revenue grew 38.3% YoY, but raw material consumption grew approximately 64.3% to ₹6,843 lakh, indicating that the company absorbed a meaningful portion of input-cost inflation or mix pressure.
- Derived EBITDA margin declined 210bps YoY to 12.5% despite revenue growth, so the quarter does not meet the required conditions for operating leverage.
- Finance costs rose 84.6% YoY to ₹24 lakh, although interest coverage remained very high at 56.05x.
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