Timex Group Q2 FY27 Results (NSE: TIMEX)
Signal: Margins at cyclical peak
The read
The trajectory strengthened in Q2FY27: revenue growth accelerated to 46.9% YoY from Q1FY27's 29.6%, while EBITDA margin expanded 69bps YoY to 18.3%; however, gross margin contracted 117bps to 41.7% and H1 operating cash flow fell 39.1% to ₹3,896 lakh as inventory and receivables expanded sharply.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹358.01 Cr | +46.9% | +63.6% |
| EBIT | ₹64.53 Cr | +53.5% | |
| Net profit | ₹47.11 Cr | +55.8% | |
| EPS | ₹4.62 | +61.0% | |
| EBIT margin | 18.3% |
P&L walk
Standalone Q2 revenue grew 46.9% YoY to ₹35,801 lakh and 63.6% sequentially, while EBITDA increased 52.6% YoY to ₹6,550 lakh and EBITDA margin expanded 69bps to 18.3%; PAT rose 55.8% to ₹4,711 lakh, helped by slower growth in employee and other expenses than revenue.
Key positives
- Revenue increased 46.9% YoY to ₹35,801 lakh, accelerating from 29.6% YoY growth in Q1FY27.
- EBITDA rose 52.6% YoY to ₹6,550 lakh and EBITDA margin expanded 69bps YoY to 18.3%.
- Employee benefits expense grew 11.7% YoY to ₹1,589 lakh, materially slower than revenue growth and lowering employee-cost intensity by 139bps to 4.4%.
- PAT increased 55.8% YoY to ₹4,711 lakh and EPS rose 61.0% to ₹4.62, with EPS tracking ahead of PAT.
Key concerns
- Gross margin fell 117bps YoY to 41.7% and 320bps sequentially; the filing does not disclose whether the decline reflects input costs, pricing or mix.
- H1 operating cash flow declined 39.1% YoY to ₹3,896 lakh despite H1 PAT of ₹7,213 lakh, as inventory rose to ₹36,802 lakh and trade receivables to ₹12,055 lakh.
- Inventory nearly doubled from ₹19,693 lakh at March 31, 2026, while trade receivables more than doubled from ₹5,816 lakh, increasing working-capital intensity.
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