Schneider Elect. Q2 FY27 Results (NSE: SCHNEIDER)
Signal: Margin pressure
The read
The trajectory is a sharp order-and-execution inflection but not yet a profit recovery: Q2 order intake reached a record INR 1,265 crore, +50.9% YoY, and sales rose to INR 779 crore, +19.8% YoY, while EBIT fell 22.7% to INR 56 crore and EBIT margin compressed to 7.2% from 11.1% because legacy-order input costs remain insufficiently passed through; management expects margin improvement as current-cost orders execute.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹779 Cr | 19.8% | 19.6% |
| EBIT | ₹56 Cr | -22.7% | |
| EBIT margin | 7.2% |
P&L walk
Q2 sales increased to INR 779 crore, +19.8% YoY and +19.6% QoQ, but EBIT declined to INR 56 crore, -22.7% YoY, as commodity volatility and delayed pass-through on legacy orders outweighed stronger execution.
Key positives
- Order intake reached a record INR 1,265 crore in Q2FY27, +50.9% YoY, after INR 915 crore in Q1FY27, indicating accelerating demand across data centres, semiconductors and grid infrastructure.
- Order backlog rose to INR 2,701 crore as of 30 September 2026, +49.6% YoY, providing stronger sales visibility than the Q2 sales growth of +19.8% YoY.
- Q2 sales rose 19.6% sequentially to INR 779 crore as order conversion and project execution picked up.
- The company approved INR 211 crore of Kolkata capacity investment, targeting Vacuum Interrupter capacity growth from 250,000 to 375,000 units per annum and 18,000 units per annum of additional Breaker capacity by FY 2028-29.
Key concerns
- EBIT declined 22.7% YoY to INR 56 crore despite sales growth of 19.8%, and EBIT margin fell to 7.2% from 11.1%, showing that order growth is not yet translating into comparable profitability.
- H1FY27 EBIT fell 50.7% YoY to INR 64 crore on sales growth of 12.5% to INR 1,430 crore, leaving H1 EBIT margin at 4.5% versus 10.2% in H1FY26.
- Management attributed the margin pressure to commodity-price volatility and delayed pass-through of higher input costs on certain legacy orders, leaving recovery dependent on execution of current-cost orders.
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