Sedemac Mechatro Q2 FY27 Results (NSE: SEDEMAC)
Signal: Steady quarter
The read
The growth engine remains Mobility, whose revenue rose 52.0% YoY to ₹366.35 crore, but the trajectory became less clean as gross margin compressed 352bps YoY to 35.33% and finance costs rose 137.7% to ₹5.87 crore; PAT growth of 30.0% still outpaced the 25.6% EPS growth because of post-IPO dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹400.64 Cr | +39.9% | +29.3% |
| Net profit | ₹39.18 Cr | +30.0% | |
| EPS | ₹8.87 | +25.6% |
P&L walk
Standalone revenue increased to ₹400.64 crore, +39.9% YoY and +29.3% QoQ, but gross margin fell to 35.33% from 38.85% YoY as material costs rose to 69.23% of revenue from 61.80%; PAT still rose to ₹39.18 crore, +30.0% YoY, helped partly by a lower tax burden, while EPS growth of 25.6% lagged PAT growth because of the enlarged share base.
Segments
Mobility was the clear driver, with Q2 revenue of ₹366.35 crore, +52.0% YoY, and segment result of ₹49.42 crore, while Industrial revenue fell 26.2% YoY to ₹34.29 crore and result fell 33.9% to ₹5.19 crore.
Key positives
- Revenue increased to ₹400.64 crore, +39.9% YoY and +29.3% QoQ, showing strong sequential momentum.
- Mobility revenue rose 52.0% YoY to ₹366.35 crore and generated ₹49.42 crore of segment result, versus Industrial revenue decline of 26.2%.
- PAT increased 30.0% YoY to ₹39.18 crore despite a 352bps gross-margin contraction, supported partly by a lower tax burden.
- PPE plus CWIP increased to ₹282.65 crore from ₹186.73 crore, indicating meaningful capacity and development investment.
Key concerns
- Gross margin fell to 35.33% from 38.85% YoY as material costs rose to 69.23% of revenue from 61.80%; the filing does not disclose the cause.
- Industrial revenue declined 26.2% YoY to ₹34.29 crore and segment result declined 33.9% to ₹5.19 crore.
- H1 operating cash flow was negative ₹20.38 crore despite ₹72.49 crore PAT, with ₹78.35 crore absorbed by receivables and ₹100.84 crore by inventory.
- Finance costs increased 137.7% YoY to ₹5.87 crore, while EPS growth of 25.6% lagged PAT growth of 30.0%.
Research and educational content only. Not investment advice.