Raghav Product. H1FY27 Results (NSE: RPEL)
Signal: Margin expansion
The read
H1FY27 marks a continuation of the margin inflection: consolidated operating margin expanded about 151bps YoY to 29.9% as raw-material intensity fell to 23.2% of revenue from 29.2%, while revenue growth accelerated to 47.3% and PAT grew 61.4%; the next test is whether higher CWIP converts into earnings without further working-capital strain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹179.79 Cr | +47.3% | N/A |
| Net profit | ₹41.21 Cr | +61.4% | |
| EPS | ₹8.97 | +61.3% | |
| EBIT margin | 29.9% |
P&L walk
Consolidated revenue increased 47.3% to ₹17,978.57 lakh while gross margin expanded to 73.6% from 70.2%; lower raw-material intensity and finance costs supported PAT growth of 61.4% to ₹4,120.87 lakh.
Segments
The company reports a single Ramming Mass segment; the material divergence is between consolidated PAT of ₹4,120.87 lakh and standalone PAT of ₹2,066.60 lakh, with the group benefit reflecting subsidiary earnings while the ₹456.25 lakh subsidiary dividend is eliminated on consolidation.
Key positives
- Consolidated revenue reached ₹17,978.57 lakh, up 47.3% YoY, while cost of materials consumed rose 17.2%, supporting gross-margin expansion of 334bps to 73.6%.
- Consolidated operating margin increased about 151bps YoY to 29.9%, extending the margin expansion seen in the recent results series.
- PAT rose 61.4% to ₹4,120.87 lakh and EPS rose 61.3% to ₹8.97, indicating earnings growth broadly translated into per-share growth.
- CWIP increased to ₹1,534.24 lakh from ₹423.78 lakh, signalling a substantially larger capacity-investment pipeline.
Key concerns
- Trade receivables increased to ₹7,827.26 lakh and inventories to ₹6,808.25 lakh at 30-Sep-26 from ₹5,821.52 lakh and ₹5,745.37 lakh respectively at 31-Mar-26.
- Operating cash flow of ₹1,836.47 lakh was only 44.6% of consolidated PAT of ₹4,120.87 lakh because inventories and receivables absorbed cash.
- Standalone PAT of ₹2,066.60 lakh includes ₹456.25 lakh of dividend income from the wholly owned subsidiary; consolidated earnings are the cleaner measure of underlying group performance.
Research and educational content only. Not investment advice.