Time Technoplast Q2 FY27 Results (NSE: TIMETECHNO)
Signal: Steady quarter
The read
The quarter shows a stronger top-line inflection, with consolidated revenue up 32.0% YoY and Composite Products up 34.5%, but the investment question shifts to margin recovery: gross margin compressed about 364bps to 25.0% and EBITDA margin fell 152bps to 13.28%; lower finance costs helped PAT rise 26.5%, while EPS growth lagged because of the expanded share base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,994.19 Cr | +32.0% | +17.8% |
| EBIT | ₹210.82 Cr | +19.1% | |
| Net profit | ₹148.31 Cr | +26.5% | |
| EPS | ₹2.96 | +16.5% | |
| EBIT margin | 13.28% |
P&L walk
Revenue increased to 1,99,419 lakh, +32.0% YoY and +17.8% QoQ, but gross margin compressed to about 25.0% from 28.6% as material consumption including inventory adjustment rose to about 75.0% of revenue from 71.4%; EBITDA margin fell to 13.28% from 14.80%, while PAT still rose 26.5% to 14,831 lakh.
Segments
Composite Products was the faster-growing business, with revenue up 34.5% YoY to 78,541 lakh and segment result up 21.2% to 9,159 lakh, while Polymer Products remained larger at 1,20,878 lakh revenue and 11,923 lakh result.
Key positives
- Consolidated revenue rose 32.0% YoY to 1,99,419 lakh, accelerating from the 25.1% three-year sales CAGR cited in the fundamentals context.
- Composite Products revenue grew 34.5% YoY to 78,541 lakh and 26.7% QoQ, outpacing the consolidated revenue increase.
- H1 operating cash flow increased 36.9% YoY to 37,181 lakh, exceeding H1 profit before tax of 35,526 lakh.
- Finance costs declined 30.0% YoY to 1,504 lakh, while the consolidated debt-equity ratio was 0.13 versus 0.20 YoY.
- Receivable days declined to 61 from 67 YoY and inventory days to 57 from 62 YoY.
Key concerns
- Gross margin compressed approximately 364bps YoY to 25.0% as material consumption including inventory adjustment rose to about 75.0% of revenue from 71.4%; the filing does not disclose the driver.
- EBITDA margin declined 152bps YoY to 13.28% despite 32.0% revenue growth, indicating that cost absorption or mix pressure offset scale benefits.
- EPS rose 16.5% to ₹2.96, materially below 26.5% PAT growth, reflecting dilution after the QIP and the higher paid-up share capital.
- Standalone PAT grew 18.9% to 6,916 lakh, below consolidated PAT growth of 26.5% to 14,831 lakh, showing that subsidiaries contributed materially to group earnings.
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