Raj Rayon Inds. Q2 FY27 Results (NSE: RAJRILTD)
Signal: Margin expansion
The read
The key inflection is the Q2 revenue rebound to ₹45,646.96 lakh, +42.95% YoY after Q1 revenue fell 21.42%, with EBITDA margin expanding 166bps to 7.50%; however, H1 operating cash flow was negative ₹9,224.17 lakh and receivables rose to ₹4,838.45 lakh, so the recovery still needs working-capital confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹456.47 Cr | +42.95% | +123.25% |
| Net profit | ₹22.99 Cr | +186.42% | |
| EPS | ₹0.41 | +192.86% | |
| EBIT margin | 7.50% |
P&L walk
Standalone Q2FY27 revenue increased to ₹45,646.96 lakh, +42.95% YoY, and EBITDA rose +83.83% to ₹3,425.52 lakh, expanding margin by 166bps to 7.50%; PAT grew +186.42% to ₹2,298.95 lakh, helped by operating growth and a ₹116.97 lakh deferred-tax credit.
Key positives
- Revenue recovered to ₹45,646.96 lakh in Q2FY27, up 42.95% YoY versus the prior quarter's 21.42% YoY decline.
- EBITDA grew 83.83% YoY to ₹3,425.52 lakh versus revenue growth of 42.95%, with employee costs up 17.57%, depreciation up 14.34% and finance costs up 17.46%; EBITDA margin expanded 166bps to 7.50%.
- Basic EPS increased 192.86% YoY to ₹0.41, broadly tracking the 186.42% PAT increase.
- Borrowings declined to ₹20,936.14 lakh from ₹22,249.27 lakh at 31 March 2026.
Key concerns
- H1FY27 operating cash flow was negative ₹9,224.17 lakh despite PAT of ₹2,984.83 lakh, indicating substantial working-capital absorption.
- Trade receivables increased to ₹4,838.45 lakh from ₹3,019.64 lakh at 31 March 2026, while inventories remained elevated at ₹11,341.20 lakh.
- Gross margin declined 598bps sequentially to 19.47% as material, purchase and inventory costs reached 80.53% of Q2 revenue.
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