Savita Oil Tech Q2 FY27 Results (NSE: SOTL)
Signal: Growth reaccelerated
The read
The Q1FY27 margin spike partially normalized in Q2FY27, with consolidated EBITDA margin falling to 16.9% from 26.0% QoQ but remaining well above 5.7% YoY; the durable improvement is supported by gross-margin expansion of 754bps and operating leverage, while revenue accelerated to +58.7% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,709.39 Cr | 58.7% | 15.5% |
| EBIT | ₹283.12 Cr | 410.2% | |
| Net profit | ₹211.86 Cr | 421.9% | |
| EPS | ₹30.9 | 422.0% | |
| EBIT margin | 16.9% |
P&L walk
Revenue from operations rose to ₹170,939.21 lakh, +58.7% YoY and +15.5% QoQ, while gross margin expanded to 25.9% from 18.4% and EBITDA margin reached 16.9% from 5.7% YoY; sequential margin compression from 26.0% reflects normalization after Q1's spike, while PAT still rose 421.9% YoY to ₹21,185.80 lakh.
Segments
Petroleum Products drove the group, contributing 169,598.88 lakh of revenue and 28,470.16 lakh of segment result, with result up 536.2% YoY; Wind Power was smaller at 1,513.09 lakh revenue but its result rose 6.9% YoY to 1,107.61 lakh.
Key positives
- Consolidated revenue reached ₹170,939.21 lakh, +58.7% YoY and +15.5% QoQ, with Petroleum Products segment revenue of ₹169,598.88 lakh, +59.6% YoY.
- Gross margin expanded 754bps YoY to 25.9% as material, purchase and inventory-change costs fell to 74.1% of total income from 81.6%.
- EBITDA grew 368.4% YoY versus revenue growth of 58.7%, a +309.7 percentage-point growth gap; employee and other expenses grew only 9.0% and depreciation 3.7%.
- Operating cash flow rose to ₹22,560.59 lakh in H1FY27 from ₹9,260.72 lakh, despite working-capital investment in receivables and inventories.
Key concerns
- EBITDA margin declined 906bps QoQ to 16.9% from 26.0%, so the Q1 profitability spike has not been fully sustained.
- Trade receivables reached ₹1,18,355.93 lakh and inventories ₹1,10,857.76 lakh; H1 cash flow shows increases of ₹26,878.72 lakh and ₹22,425.84 lakh respectively, creating working-capital intensity.
- Finance cost rose 67.8% YoY to ₹675.00 lakh despite borrowings being reported as '-'.
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