Saint-Gob. Sekur Q2 FY27 Results (NSE: SEKURITIND)
Signal: Margin pressure
The read
The key inflection is margin pressure rather than demand: revenue accelerated to +13.4% YoY, but gross margin compressed 298bps and EBITDA margin fell 377bps to 18.70%; PAT growth of 5.1% was sustained by ₹321.52 lakh of other income and a 68.8% decline in finance costs, making operating earnings weaker than the headline profit suggests.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹68.48 Cr | +13.4% | +12.7% |
| EBIT | ₹12.03 Cr | -5.1% | |
| Net profit | ₹11.32 Cr | +5.1% | |
| EPS | ₹1.24 | +5.1% | |
| EBIT margin | 18.70% |
P&L walk
Revenue rose to ₹6,848.00 lakh, +13.4% YoY and +12.7% QoQ, but gross margin compressed 298bps YoY to 52.54% as material costs rose to 44.61% of revenue; EBITDA margin fell 377bps to 18.70%, while PAT still grew 5.1% because other income rose 17.5% and finance costs fell 68.8%.
Key positives
- Revenue increased 13.4% YoY to ₹6,848.00 lakh and 12.7% QoQ, sustaining double-digit topline growth.
- Finance costs fell 68.8% YoY to ₹3.75 lakh, helping PAT grow 5.1% despite a 5.9% EBITDA decline.
- EPS grew 5.1% in line with PAT, indicating no material dilution signal from the reported share base.
- The company generated positive H1 operating cash flow of ₹851.65 lakh despite ₹1,131.83 lakh of quarterly PAT.
Key concerns
- Gross margin compressed 298bps YoY to 52.54% as material costs rose to 44.61% of revenue from 42.49%; the filing does not disclose the driver.
- EBITDA declined 5.9% YoY and EBITDA margin fell 377bps to 18.70% even as revenue grew 13.4%, indicating operating profitability did not keep pace with sales.
- PAT growth of 5.1% was below revenue growth and benefited from other income of ₹321.52 lakh, which rose 17.5% YoY.
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