Rajratan Global Q2 FY27 Results (NSE: RAJRATAN)
Signal: Margin pressure
The read
The trajectory is revenue-positive but margin-sensitive: consolidated revenue accelerated to ₹37,083 lakh, +26.1% YoY, led by international growth of 37.2%, while gross margin compressed 368bps and EBITDA margin fell 126bps to 12.3%; PAT still rose 17.5% because finance cost declined 9.2% and subsidiaries added ₹738 lakh above standalone profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹370.83 Cr | +26.1% | +16.5% |
| EBIT | ₹38.18 Cr | +15.3% | |
| Net profit | ₹24.14 Cr | +17.5% | |
| EPS | ₹4.75 | +17.3% | |
| EBIT margin | 12.3% |
P&L walk
Consolidated revenue increased to ₹37,083 lakh, +26.1% YoY and +16.5% QoQ, while gross margin fell to 39.0% from 42.6% as material costs rose to 61.4% of revenue; EBITDA margin consequently declined to 12.3%, though lower finance cost and operating growth lifted PAT to ₹2,414 lakh, +17.5% YoY.
Segments
The business reports one operating segment, but subsidiaries materially lifted the group: consolidated PAT of ₹2,414 lakh was ₹738 lakh above standalone PAT of ₹1,676 lakh, including ₹547 lakh from Rajratan Thai Wire and ₹193 lakh from Rajratan Wire USA.
Key positives
- Consolidated revenue reached ₹37,083 lakh, +26.1% YoY and +16.5% QoQ, with international revenue growing 37.2% YoY to ₹16,763 lakh.
- Subsidiaries contributed ₹740 lakh of consolidated PAT, lifting group PAT to ₹2,414 lakh versus standalone PAT of ₹1,676 lakh.
- Finance cost declined 9.2% YoY to ₹700 lakh despite consolidated borrowings of ₹41,389 lakh.
- EPS grew 17.3% YoY to ₹4.75, tracking PAT growth without evidence of equity dilution.
Key concerns
- Gross margin compressed 368bps YoY to 39.0% as material costs rose to 61.4% of revenue from 59.8%; revenue growth did not prevent cost absorption.
- EBITDA grew 14.4% YoY to ₹4,579 lakh, 11.7 percentage points below revenue growth of 26.1%, and EBITDA margin declined 126bps to 12.3%.
- Consolidated inventory increased to ₹14,037 lakh from ₹10,419 lakh at March 2026 while net debt rose ₹7,911 lakh to ₹36,592 lakh.
Research and educational content only. Not investment advice.