Pricol Ltd Q2 FY27 Results (NSE: PRICOLLTD)

4 Nov 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The trajectory remains volume or content-led growth with consolidated revenue up 34.7% YoY to ₹1,356.32 crore, but the key inflection is a return to gross-margin pressure: margin compressed 213bps as raw-material cost reached 70.0% of revenue, offsetting employee-cost operating leverage and holding EBITDA margin to 10.6%.

P&L walk

Consolidated revenue increased 34.7% YoY to ₹1,356.32 crore, but gross margin fell to 28.4% from 30.5% as raw-material cost rose to 70.0% of revenue from 68.3%; EBITDA grew 21.5% to ₹143.40 crore and margin declined to 10.6%, while PAT still rose 33.2% to ₹85.21 crore.

Key positives

• Consolidated revenue rose 34.7% YoY to ₹1,356.32 crore, while standalone revenue grew 37.4% to ₹1,040.53 crore.
• Employee costs grew 22.5% YoY on a consolidated basis versus revenue growth of 34.7%, reducing employee-cost intensity to 10.4% of revenue from 11.0%.
• PAT increased 33.2% YoY to ₹85.21 crore and EPS increased 33.1% to ₹6.99 without a material PAT-to-EPS divergence.
• Property, plant and equipment increased to ₹996.51 crore from ₹860.08 crore, with H1 capex of ₹174.27 crore supporting the higher depreciation base.

Key concerns

• Gross margin compressed 213bps YoY to 28.4% as raw-material cost increased to 70.0% of revenue from 68.3%; the filing does not disclose the cause or the extent of pass-through.
• EBITDA margin fell 115bps YoY to 10.6% despite 34.7% revenue growth, showing that material-cost pressure outweighed employee-cost savings.
• Consolidated operating cash flow was ₹71.83 crore in H1FY27 versus ₹146.30 crore in H1FY26, while receivables and inventories consumed ₹265.59 crore and ₹137.34 crore respectively.
• Finance costs rose 42.9% YoY to ₹9.70 crore, faster than revenue growth.

View original filing

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