Radhika Jeweltec Q2 FY27 Results (NSE: RADHIKAJWE)
Signal: Growth decelerated
The read
The key inflection is gross-margin recovery: raw-material intensity fell to 69.26% from 89.70% YoY, lifting PAT 20.37% on 11.71% revenue growth; however, Q2 PAT declined 3.05% QoQ after Q1 revenue growth of 53.87%, so the sustainability of the margin recovery is the central issue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹148.63 Cr | +11.71% | +2.72% |
| Net profit | ₹22.16 Cr | +20.37% | |
| EPS | ₹1.88 | +21.29% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue increased to ₹14,862.92 lakh, +11.71% YoY and +2.72% QoQ, while gross margin expanded to 30.74% from 10.30% YoY as material cost fell to 69.26% of revenue from 89.70%; PAT rose 20.37% to ₹2,216.34 lakh despite a 3.05% sequential decline.
Key positives
- Gross margin expanded to 30.74% from 10.30% YoY as raw-material cost declined to 69.26% of revenue from 89.70%.
- PAT rose 20.37% YoY to ₹2,216.34 lakh, outpacing 11.71% revenue growth to ₹14,862.92 lakh.
- Finance costs fell 33.63% YoY to ₹49.65 lakh, providing an additional earnings tailwind.
- EPS increased 21.29% YoY to ₹1.88, tracking PAT without evidence of dilution.
Key concerns
- Q2 revenue growth of 11.71% YoY is materially below Q1FY27 growth of 53.87%, indicating a sharp sequential deceleration in topline momentum.
- PAT declined 3.05% QoQ to ₹2,216.34 lakh and EPS declined from ₹1.94 to ₹1.88.
- The filing does not disclose the reason for the 20.44 percentage-point gross-margin expansion, so persistence of the improvement remains unconfirmed.
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