Transrail Light Q2 FY27 Results (NSE: TRANSRAILL)
Signal: Growth reaccelerated
The read
The trajectory is revenue-positive but conversion-sensitive: standalone Q2 revenue accelerated to +32.1% YoY and gross margin expanded 272bps to 31.3%, yet EBITDA margin contracted 57bps to 12.4% and PAT growth was only 14.0%; this is a margin-quality check after the recent Q1FY27 margin stabilisation rather than a clean acceleration in earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,030.88 Cr | +32.1% | +19.4% |
| Net profit | ₹104.7 Cr | +14.0% | |
| EPS | ₹7.8 | +14.9% | |
| EBIT margin | 12.4% |
P&L walk
Standalone revenue rose 32.1% YoY to ₹2,030.88 crore, with gross margin expanding 272bps to 31.3%; however, EBITDA margin fell 57bps to 12.4% and PAT growth lagged revenue at 14.0%, reflecting weaker conversion below gross profit.
Key positives
- Revenue increased 32.1% YoY to ₹2,030.88 crore, up from ₹1,537.91 crore in Q2FY26 and ₹1,700.17 crore in Q1FY27.
- Gross margin expanded 272bps YoY to 31.3%, despite raw material cost increasing to 51.5% of revenue from 46.0%.
- H1 operating cash flow was ₹437.94 crore versus ₹368.08 crore a year earlier, supporting reported earnings quality.
- PPE increased to ₹648.52 crore from ₹580.93 crore at March 31, 2026 while depreciation rose 33.9% in H1, a clean asset-base cross-check.
Key concerns
- EBITDA margin declined 57bps YoY to 12.4% and 26bps sequentially, so the 32.1% revenue increase is not yet translating proportionately into operating profit.
- Finance cost rose 21.7% YoY to ₹73.41 crore and 31.8% sequentially, limiting conversion from operating profit to PAT.
- PAT growth of 14.0% lagged revenue growth of 32.1%, indicating below-gross-profit cost pressure and weaker earnings operating conversion.
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