Primo Chemicals Q2 FY27 Results (NSE: PRIMO)
Signal: Margin expansion
The read
The operating trajectory is mixed: consolidated revenue from operations was 13484.47 lakh, only +0.1% YoY, and EBITDA margin improved to 14.1% from 11.4%, but the parent alone lost 199.65 lakh while 141.05 lakh of associate profit and 163.92 lakh from 15 days of Flow Tech supported group PAT of 416.38 lakh; acquisition integration, not organic demand, is now the key inflection to track.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹134.84 Cr | +0.1% | -3.9% |
| EBIT | ₹6.52 Cr | +28.9% | |
| Net profit | ₹4.16 Cr | -2.5% | |
| EPS | ₹0.17 | 0% | |
| EBIT margin | 14.1% |
P&L walk
Consolidated revenue from operations was 13484.47 lakh, +0.1% YoY and -3.9% QoQ; EBITDA margin improved to 14.1% from 11.4% YoY, but net profit fell 2.5% to 416.38 lakh as associate and acquisition contributions offset a weak parent result.
Segments
The group result is being lifted outside the standalone parent: Flow Tech contributed 1267.17 lakh of revenue and 163.92 lakh of profit in its first 15 consolidated days, while the standalone parent posted a 199.65 lakh loss and the associate contributed 141.05 lakh.
Key positives
- Consolidated EBITDA margin increased to 14.1% from 11.4% YoY, a 276bps improvement, despite revenue from operations being only 0.1% higher YoY.
- Flow Tech contributed 1267.17 lakh of revenue and 163.92 lakh of net profit in only 15 days after becoming wholly owned.
- Finance cost declined 53.1% YoY to 481.99 lakh, supporting the consolidated operating-to-profit conversion.
Key concerns
- Standalone revenue from operations fell 12.2% YoY to 12217.30 lakh and the parent reported a 199.65 lakh loss after tax.
- Raw materials rose to 65.2% of consolidated revenue from approximately 61.6% a year earlier, compressing gross margin by about 360bps; the filing does not disclose the driver.
- Consolidated PAT declined 2.5% YoY to 416.38 lakh despite a 276bps EBITDA-margin expansion, because the earnings base is materially affected by associate and acquisition contributions.
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