Ramco Inds. Q2 FY27 Results (NSE: RAMCOIND)
Signal: Margin expansion
The read
The key inflection is margin recovery rather than sequential growth: consolidated operating margin expanded to 16% from 12% YoY and raw-material intensity fell to approximately 54.8% from 52.0%? Actually raw-material intensity rose from approximately 52.0% to 54.8%, so the gross-margin improvement appears to reflect the broader materials, inventory and purchase mix; PAT reached ₹86.59 crore, +111.5% YoY, but the ₹137.25 crore prior-quarter PAT shows that exceptional income still distorts the sequential trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹437.28 Cr | +19.1% | -28.7% |
| Net profit | ₹86.59 Cr | +111.5% | |
| EPS | ₹10 | +111.4% | |
| EBIT margin | 16% |
P&L walk
Consolidated revenue increased to ₹437.28 crore, +19.1% YoY, and operating margin expanded to 16% from 12%, lifting PAT to ₹86.59 crore, +111.5% YoY; sequential PAT fell 36.9% as the previous quarter included higher exceptional income.
Segments
Building Products drove the group with ₹379.07 crore of revenue and ₹54.47 crore of segment result, while Textiles revenue fell to ₹47.62 crore from ₹56.67 crore sequentially; consolidated PAT of ₹86.59 crore exceeded standalone PAT of ₹60.28 crore because of subsidiary, associate and other group contributions.
Key positives
- Consolidated revenue increased to ₹437.28 crore, +19.1% YoY, led by Building Products revenue of ₹379.07 crore.
- Operating margin expanded to 16% from 12% YoY, a 400bps improvement.
- Finance cost declined 58.6% YoY to ₹1.63 crore, and the company fully redeemed its listed NCDs during the quarter.
- Consolidated PAT rose to ₹86.59 crore from ₹40.93 crore YoY, with EPS tracking the increase at ₹10.00 versus ₹4.73.
Key concerns
- Sequential revenue declined 28.7% to ₹437.28 crore and sequential PAT declined 36.9% from ₹137.25 crore.
- Textiles revenue declined 15.9% sequentially to ₹47.62 crore and 49.8% YoY, indicating uneven momentum outside Building Products.
- The gross-margin improvement is not explicitly attributed by management, while raw materials consumed increased to approximately 54.8% of revenue from approximately 52.0% YoY.
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