Voith Paper Q2 FY27 Results (NSE: VOITHPAPR)
Signal: Steady quarter
The read
The key inflection is the recovery from Q1FY27's -1.2% YoY revenue growth to Q2FY27's +11.1%, with PAT growth improving to +12.9%; however, the 27.1% derived EBITDA margin and ₹130.08 million PAT remain supported by ₹50.33 million of other income, so operating momentum is healthier but not yet fully validated by core earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹59.14 Cr | +11.1% | +13.4% |
| Net profit | ₹13.01 Cr | +12.9% | |
| EPS | ₹29.61 | +12.8% | |
| EBIT margin | 27.1% |
P&L walk
Revenue increased to ₹591.41 million, +11.1% YoY and +13.4% QoQ, while derived EBITDA margin rose to 27.1% from approximately 26.6% YoY; PAT grew 12.9% to ₹130.08 million, supported by ₹50.33 million of other income.
Key positives
- Revenue from operations reached ₹591.41 million, +11.1% YoY and +13.4% QoQ, reversing the prior quarter's -1.2% YoY trend.
- Gross margin expanded 191bps YoY to 63.4% as material, purchase and inventory costs declined to 36.6% of revenue from 38.5%.
- Derived EBITDA grew approximately 13.5% YoY versus revenue growth of 11.1%, while employee costs rose only 4.7% YoY and depreciation declined 5.0%.
- Operating cash flow increased to ₹289.82 million in H1FY27 from ₹248.60 million, while the company retained ₹2746.52 million of cash and bank balances with no reported borrowings.
Key concerns
- Other income of ₹50.33 million represented 28.8% of profit before tax, making PAT of ₹130.08 million less representative of core operating earnings.
- H1 capex including CWIP fell 78.7% YoY to ₹30.61 million and PPE declined from ₹1214.69 million at March 31, 2026, suggesting limited current investment in the asset base.
- Quarterly derived operating margin of approximately 27.1% was 373bps below the prior quarter's approximately 30.9%, despite the YoY improvement.
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