Sejal Glass Q2 FY27 Results (NSE: SEJALLTD)
Signal: Margin expansion
The read
The earnings inflection is group-led rather than parent-led: consolidated revenue reached ₹13,809.27 lakh, +32.8% YoY, and derived EBITDA margin expanded 236bps to 14.81%, but ₹1,365.24 lakh of the ₹1,441.56 lakh consolidated PAT came from the UAE subsidiary while standalone PAT was only ₹67.49 lakh; this reverses Q3FY26’s margin contraction but makes subsidiary execution and cash conversion the key next checks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹138.09 Cr | +32.8% | +17.1% |
| EBIT | ₹15.72 Cr | +76.9% | |
| Net profit | ₹14.42 Cr | +77.6% | |
| EPS | ₹12.52 | +57.5% | |
| EBIT margin | 14.81% |
P&L walk
Consolidated revenue increased to ₹13,809.27 lakh, +32.8% YoY and +17.1% QoQ, while derived EBITDA margin improved to 14.81% from 12.45% YoY as gross margin expanded and employee-cost intensity stayed broadly flat; PAT rose 77.6% to ₹1,441.56 lakh, led by the UAE subsidiary.
Segments
Outside India generated ₹9,744.87 lakh, 70.6% of consolidated revenue, versus India’s ₹4,064.40 lakh; the UAE subsidiary alone reported ₹9,702.95 lakh of revenue and ₹1,365.24 lakh of quarterly PAT, explaining the ₹1,441.56 lakh consolidated PAT against ₹67.49 lakh standalone PAT.
Key positives
- Consolidated revenue was ₹13,809.27 lakh, +32.8% YoY and +17.1% QoQ, with India revenue growth of 43.4% YoY.
- Derived EBITDA margin expanded 236bps YoY to 14.81%; derived EBITDA grew 58.0% versus revenue growth of 32.8%, while employee cost grew only 21.4%.
- Gross margin improved 231bps YoY to 44.00% as material-related costs declined to 56.00% of revenue from 58.31%.
- Consolidated operating cash flow remained positive at ₹3,488.45 lakh in H1FY27 against ₹2,367.39 lakh of pre-tax operating profit.
Key concerns
- Consolidated PAT of ₹1,441.56 lakh was heavily concentrated in the UAE subsidiary, which contributed ₹1,365.24 lakh, while standalone PAT was only ₹67.49 lakh.
- EPS growth of 57.5% lagged PAT growth of 77.6%; paid-up capital increased to ₹1,140.00 lakh from ₹1,010.00 lakh a year earlier.
- Trade receivables rose to ₹14,641.59 lakh from ₹13,300.85 lakh and inventories to ₹4,859.25 lakh from ₹4,167.48 lakh, while H1 operating cash flow fell from ₹4,227.58 lakh to ₹3,488.45 lakh.
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