Shilchar Tech. Q2 FY27 Results (NSE: SHILCTECH)
Signal: Revenue declined
The read
The quarter shows a sequential operating rebound—revenue rose 12.2% and EBITDA rose 60.6% from Q1FY27—but the core trajectory remains pressured because gross margin compressed 2,865bps YoY to 10.73% as raw material cost reached 88.83% of revenue; recovery in the next quarter depends on reversal of this cost shock rather than demand alone.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹152.61 Cr | -10.89% | +12.16% |
| EBIT | ₹45.79 Cr | -38.09% | |
| Net profit | ₹32.98 Cr | -28.12% | |
| EPS | ₹28.83 | -28.17% | |
| EBIT margin | 30.71% |
P&L walk
Standalone Q2FY27 revenue of ₹15,261.31 lakh recovered 12.2% QoQ but declined 10.9% YoY; gross margin collapsed to 10.73% from 39.38% as raw material cost rose to 88.83% of revenue from 59.69%, driving EBITDA down 38.4% YoY and PAT down 28.1%.
Key positives
- Revenue recovered 12.2% QoQ to ₹15,261.31 lakh after Q1FY27 revenue of ₹13,607.10 lakh.
- EBITDA increased 60.6% QoQ to ₹4,686.15 lakh and EBITDA margin improved to 30.71% from 21.45%.
- The balance sheet shows no borrowings disclosed, while cash and investments total ₹18,816.97 lakh.
Key concerns
- Gross margin fell 2,865bps YoY to 10.73% as raw material cost rose to 88.83% of revenue from 59.69%.
- Revenue declined 10.9% YoY and PAT declined 28.1% YoY despite the sequential rebound.
- Operating cash flow fell 76.2% YoY to ₹1,242.21 lakh as receivables increased to ₹18,988.46 lakh and inventories to ₹9,608.81 lakh.
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