Rajoo Engineers Q2 FY27 Results (NSE: RAJOOENG)
Signal: Margin pressure
The read
The key inflection is a reversal in the margin arc: after OPM expanded through Q3FY26 and rebounded to 17.65% in Q1FY27, Q2FY27 consolidated EBITDA margin fell to 13.3% from 23.7% a year earlier as raw material cost rose to 86.8% of revenue; revenue still grew 10.5% YoY, but PAT fell 41.4% to 826.29 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹101.91 Cr | +10.5% | -17.2% |
| EBIT | ₹11.31 Cr | -45.6% | |
| Net profit | ₹8.26 Cr | -41.4% | |
| EPS | ₹0.49 | -39.5% | |
| EBIT margin | 13.3% |
P&L walk
Consolidated revenue grew 10.5% YoY to 10,191.45 lakh, but gross margin contracted to 30.3% and EBITDA margin to 13.3% as raw material cost reached 86.8% of revenue; PAT fell 41.4% to 826.29 lakh.
Segments
No segment table is disclosed; standalone PAT of 906.30 lakh exceeded consolidated PAT of 826.29 lakh because the subsidiary reported a quarterly loss of 122.30 lakh and non-controlling interest was negative 48.92 lakh.
Key positives
- Consolidated revenue reached 10,191.45 lakh, up 10.5% YoY despite a 17.2% sequential decline.
- Employee plus other expenses grew 5.9% YoY, below revenue growth of 10.5%, while finance costs declined 6.0% YoY to 64.52 lakh.
- Property, plant and equipment increased 9.8% to 10,293.00 lakh, and H1FY27 operating cash flow remained positive at 1,886.18 lakh.
- Standalone EPS of ₹0.51 and PAT of 906.30 lakh remained above consolidated EPS of ₹0.49 and PAT of 826.29 lakh.
Key concerns
- Consolidated gross margin compressed 999bps YoY to 30.3% as raw material cost rose to 86.8% of revenue from 48.5%; the filing does not disclose a mitigation driver.
- EBITDA margin fell 1047bps YoY to 13.3%, and PAT declined 41.4% to 826.29 lakh despite 10.5% revenue growth.
- H1FY27 operating cash flow fell to 1,886.18 lakh from 6,680.95 lakh while inventory increased to 29,191.81 lakh from 20,485.73 lakh.
- The subsidiary reported a quarterly loss of 122.30 lakh, dragging consolidated PAT below standalone PAT of 906.30 lakh.
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