Veedol Corporat Q2 FY27 Results (NSE: VEEDOL)
Signal: Growth reaccelerated
The read
The trajectory remains growth-positive, with consolidated revenue up 27.5% YoY to ₹649.25 Cr and PAT up 19.9% to ₹49.08 Cr, but the key inflection is a sharp gross-margin reset to 36.1% from 40.6% YoY and 45.2% QoQ; this interrupts the recent margin-expansion pattern and needs confirmation in the next quarter.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹649.25 Cr | +27.5% | +6.7% |
| EBIT | ₹63.35 Cr | +14.7% | |
| Net profit | ₹49.08 Cr | +19.9% | |
| EPS | ₹28.88 | +19.9% | |
| EBIT margin | 11.2% |
P&L walk
Consolidated revenue increased to ₹649.25 Cr, +27.5% YoY and +6.7% QoQ, but gross margin fell to 36.1% from 40.6% YoY as raw-material and purchase costs rose to 64.0% of revenue; PAT still grew 19.9% to ₹49.08 Cr with ₹9.01 Cr contributed by the joint venture.
Segments
The group materially outperformed the parent: consolidated revenue of ₹649.25 Cr versus standalone ₹440.65 Cr and PAT of ₹49.08 Cr versus ₹35.14 Cr, with the joint venture contributing ₹9.01 Cr of profit.
Key positives
- Consolidated revenue reached ₹649.25 Cr, +27.5% YoY and +6.7% QoQ, accelerating from the prior quarter's ₹608.57 Cr.
- Joint-venture profit rose 26.7% YoY to ₹9.01 Cr and helped lift consolidated PAT above standalone PAT by ₹13.94 Cr.
- EPS rose 19.9% YoY to ₹28.88, tracking PAT without evidence of dilution.
- Consolidated property, plant and equipment increased to ₹209.21 Cr while depreciation rose only 3.0% on a half-year basis to ₹16.39 Cr, a clean capex/depreciation cross-check.
Key concerns
- Gross margin compressed 450bps YoY to 36.1% as raw-material and purchase costs rose to 64.0% of revenue from 59.2%; the filing does not disclose a mitigating pricing or mix driver.
- Operating cash flow turned negative at ₹83.31 Cr for H1FY27 versus positive ₹106.44 Cr a year earlier, mainly alongside inventory rising to ₹502.83 Cr from ₹324.65 Cr.
- PAT declined 37.0% QoQ from ₹77.92 Cr to ₹49.08 Cr, while operating margin fell 480bps QoQ to 11.2%.
- The consolidated result is materially dependent on subsidiaries and the joint venture, with consolidated PAT of ₹49.08 Cr versus standalone PAT of ₹35.14 Cr.
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