Ratnamani Metals Q2 FY27 Results (NSE: RATNAMANI)
Signal: Margin pressure
The read
Revenue demonstrated a solid turnaround (+38.7% QoQ and +13.1% YoY) after previous contraction quarters, but margins faced severe pressure from a 73.7% surge in other expenses, causing consolidated PAT to decline 14.5% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,347.51 Cr | 13.08% | 38.68% |
| EBIT | ₹151.82 Cr | -15.28% | |
| Net profit | ₹133.34 Cr | -14.55% | |
| EPS | ₹14.49 | -25.42% | |
| EBIT margin | 11.27% |
P&L walk
Top line grew 13.1% YoY with gross margin expanding 294 bps, but a 73.7% increase in other expenses dragged operating profitability.
Key positives
- Gross margin expanded +294 bps YoY to 41.93% (COGS dropped to 58.07% of revenue from 61.01%).
- Revenue rebounded sharply +38.68% QoQ to ₹1,34,750.77 lakh from ₹97,163.25 lakh in Q1FY27.
Key concerns
- Other expenses escalated +73.68% YoY to ₹28,309.66 lakh, compressing EBITDA margin by 342 bps YoY.
- Standalone operating cash flow turned negative at -₹28,722.21 lakh in H1FY27 vs +₹79,452.11 lakh in H1FY26 due to inventory buildup of ₹42,070.12 lakh.
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