Sayaji Industr Q2 FY27 Results (NSE: SAYAJIIND)
Signal: Loss reversed
The read
The key inflection is gross-margin recovery: consolidated gross margin expanded 897bps YoY to 31.73% as raw-material cost fell to 69.98% of revenue from 82.47%, turning PAT positive at ₹313.58 lakh; however, revenue declined 8.51% QoQ and PAT fell 57.25% from Q1FY27, so the durability of the margin recovery remains the central trajectory question.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹263.55 Cr | +5.71% | -8.51% |
| EBIT | ₹14.53 Cr | N/A (prior-year operating EBIT was negative) | |
| Net profit | ₹3.14 Cr | N/A (from a loss of ₹516.42 lakh) | |
| EPS | ₹1.35 | N/A (from a loss) | |
| EBIT margin | 7.64% |
P&L walk
Revenue grew 5.71% YoY but declined 8.51% QoQ; gross margin expanded to 31.73% from 22.76% as raw-material cost fell to 69.98% of revenue from 82.47%, lifting EBITDA margin to 7.64%, while PAT was ₹313.58 lakh versus a ₹516.42 lakh loss a year ago but below ₹733.71 lakh in Q1FY27.
Key positives
- Consolidated gross margin expanded 897bps YoY to 31.73%, with raw-material cost declining to 69.98% of revenue from 82.47%.
- PAT turned positive at ₹313.58 lakh from a ₹516.42 lakh loss a year ago, while EBITDA margin expanded 644bps YoY to 7.64%.
- The joint venture contributed ₹103.22 lakh of profit, up 19.67% YoY, supporting consolidated earnings.
Key concerns
- Revenue declined 8.51% QoQ to ₹26,354.95 lakh and PAT declined 57.25% QoQ to ₹313.58 lakh, indicating sequential momentum weakened after Q1FY27.
- The filing does not identify the reason for the 897bps gross-margin expansion, leaving the persistence of the recovery unconfirmed.
- Employee expense rose 10.70% YoY and other expenses rose 21.33% YoY, limiting conversion of gross-profit gains into operating profit.
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