Venus Pipes Q2 FY27 Results (NSE: VENUSPIPES)
Signal: Growth decelerated
The read
The trajectory remains revenue-positive but earnings momentum has weakened: Q2 revenue grew 12.6% YoY to 3,610.54 million, while derived EBITDA was nearly flat at 516.68 million and margin contracted 176bps to 14.3%; the key watchpoint is whether higher debt-funded capacity and capex translate into faster growth than the 22.3% rise in finance cost.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹361.05 Cr | +12.6% | +23.8% |
| Net profit | ₹26.02 Cr | -1.5% | |
| EPS | ₹12.56 | -1.5% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue grew 12.6% YoY to 3,610.54 million, while derived EBITDA margin fell 176bps to 14.3%; PAT declined 1.5% to 260.24 million as finance cost and other expenses rose faster than revenue.
Key positives
- Revenue reached ₹3,610.54 million, up 12.6% YoY and 23.8% sequentially, sustaining double-digit growth.
- H1 operating cash flow improved 126.8% YoY to ₹443.22 million.
- Derived gross margin remained broadly stable at 35.4%, up 16bps YoY.
Key concerns
- Derived EBITDA margin contracted 176bps YoY to 14.3% as EBITDA was nearly flat despite 12.6% revenue growth.
- Finance cost rose 22.3% YoY to ₹137.95 million and net debt increased to ₹3,813.91 million.
- PAT declined 1.5% YoY to ₹260.24 million despite double-digit revenue growth.
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