Shivalik Bimetal Q2 FY27 Results (NSE: SBCL)
Signal: Margin expansion
The read
The key inflection is accelerating growth rather than clean margin expansion: consolidated revenue growth increased to 43.9% from 32.9% in Q1FY27 and H1 revenue is up 38.7%, but gross margin compressed 158bps as raw-material intensity rose to 66.6%; standalone execution remains materially better, with gross margin up 440bps and PAT up 40.8%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹197.79 Cr | +43.9% | +8.6% |
| Net profit | ₹34.75 Cr | +39.8% | |
| EPS | ₹5.82 | +36.3% | |
| EBIT margin | 26.9% |
P&L walk
Consolidated revenue rose 43.9% YoY and 8.6% QoQ to ₹19,778.83 lakh, while gross margin fell 158bps to 45.5% because raw-material intensity rose to 66.6%; derived operating margin nevertheless expanded 165bps to 26.9%, but finance costs rose 84.3% and associate profit fell 49.7%.
Segments
The parent was stronger than the group on margin: standalone PAT rose 40.8% YoY to ₹2,980.67 lakh and gross margin expanded 440bps, versus consolidated PAT growth of 39.8% and gross-margin compression of 158bps; subsidiaries and the associate therefore diluted the parent's margin trajectory, although the associate still contributed ₹114.36 lakh.
Key positives
- Consolidated revenue reached ₹19,778.83 lakh, up 43.9% YoY and 8.6% QoQ, accelerating from Q1FY27 growth of 32.9%.
- H1FY27 revenue of ₹37,998.47 lakh is up 38.7% YoY and H1 PAT of ₹6,787.06 lakh is up 42.5% YoY, already running above the open FY27 revenue-growth claim of 20%-30%, although the full-year claim remains unresolved.
- Standalone gross margin expanded 440bps YoY to 54.2% and standalone PAT rose 40.8% to ₹2,980.67 lakh.
- Derived consolidated operating margin expanded 165bps YoY to 26.9%, with employee costs rising 17.3% versus revenue growth of 43.9%.
Key concerns
- Consolidated raw-material cost rose 81.3% YoY to ₹13,177.51 lakh versus revenue growth of 43.9%, lifting raw-material intensity to 66.6% from 52.9% and compressing gross margin by 158bps.
- Consolidated finance costs rose 84.3% YoY to ₹210.52 lakh, faster than revenue, while borrowings exceeded cash by ₹6,675.18 lakh at 30 September 2026.
- The proposed 2:1 bonus issue would increase shares from 57,604,200 to 172,812,600; future per-share comparisons will require adjustment even though it does not change operating earnings.
- The CFO position is under interim responsibility pending a selected candidate expected to join in January 2027, while the Company Secretary is scheduled to resign effective 7 December 2026.
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