Rubicon Research Q2 FY27 Results (NSE: RUBICON)
Signal: Growth decelerated
The read
The trajectory remains positive but uneven: consolidated EBITDA margin expanded to 25.0% from 22.9% YoY and this is the fifth consecutive quarter of margin expansion in the available series, while revenue growth accelerated to 39.9% from 4.0% QoQ; however, standalone revenue fell 14.0% YoY and subsidiary losses, higher working capital and dilution temper the quality of the consolidated acceleration.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹576.38 Cr | +39.9% | +7.9% |
| EBIT | ₹126.04 Cr | +52.9% | |
| Net profit | ₹90.43 Cr | +67.9% | |
| EPS | ₹5.47 | +56.7% | |
| EBIT margin | 25.0% |
P&L walk
Revenue rose to ₹5,763.83 million, +39.9% YoY and +7.9% QoQ, while EBITDA increased to ₹1,440.85 million, +52.8% YoY, lifting margin to 25.0%; PAT grew faster at ₹904.26 million, +67.9% YoY, but four reviewed subsidiaries reported a ₹109.35 million loss.
Segments
The consolidated result is materially dragged by subsidiaries: four subsidiaries contributed ₹707.31 million of quarterly revenue but a ₹109.35 million net loss, while the standalone parent generated ₹606.20 million PAT; nine other subsidiaries contributed ₹16.08 million PAT on ₹313.93 million revenue.
Key positives
- Consolidated revenue reached ₹5,763.83 million, +39.9% YoY and +7.9% QoQ, accelerating from ₹4,120.18 million in Q2FY26.
- EBITDA increased to ₹1,440.85 million, +52.8% YoY versus revenue growth of +39.9%, with EBITDA margin expanding 210bps to 25.0%.
- R&D expenditure rose 35.9% YoY to ₹646.61 million while R&D intensity remained substantial at 11.2% of revenue.
- The parent delivered standalone gross-margin expansion of 394bps YoY to 69.0%, despite a 14.0% decline in standalone revenue.
Key concerns
- Four subsidiaries reported a quarterly net loss of ₹109.35 million on ₹707.31 million revenue, creating a material gap between consolidated and standalone earnings.
- Consolidated borrowings increased to ₹3,983.70 million and net debt moved from net cash of ₹2,296.72 million at March 31, 2026 to net debt of ₹1,174.51 million.
- Standalone operating cash flow fell 22.6% YoY to ₹435.77 million in H1FY27 while inventories and receivables increased to ₹7,903.66 million and ₹5,776.66 million on a consolidated basis.
- Basic EPS growth of 56.7% lagged PAT growth of 67.9% as paid-up share capital increased to ₹165.53 million from ₹154.44 million.
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