Walchan. Inds. Q2 FY27 Results (NSE: WALCHANNAG)
Signal: Margin expansion
The read
The key inflection is sustained operating profitability: EBITDA rose to ₹1,342 lakh from ₹61 lakh YoY and PBT stayed positive for a fourth consecutive quarter at ₹47 lakh, but sequential EBITDA declined 6.2% and PBT fell 60.2%, while PAT and EPS were not disclosed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹98.15 Cr | +77% | +0.4% |
| EBIT margin | 14.3% |
P&L walk
Total income rose 77% YoY to ₹9,815 lakh, with revenue from operations up 81% to ₹9,353 lakh; EBITDA expanded to ₹1,342 lakh and EBITDA margin reached 14.3%, but PBT was only ₹47 lakh, indicating substantial below-EBITDA costs that were not separately disclosed.
Key positives
- Revenue from operations increased 81% YoY to ₹9,353 lakh and remained broadly stable sequentially, rising 3.0% from ₹9,083 lakh.
- EBITDA increased to ₹1,342 lakh from ₹61 lakh YoY, expanding EBITDA margin from 1.2% to 14.3%.
- PBT turned positive at ₹47 lakh versus a ₹1,190 lakh loss YoY, extending positive PBT to four consecutive quarters.
- Order inflows totaled ₹9,946 lakh, including ₹3,813 lakh from aerospace, strengthening the chosen strategic-sector pipeline.
Key concerns
- PBT of ₹47 lakh represented only 3.5% of EBITDA of ₹1,342 lakh, and the filing does not separately disclose depreciation, finance cost, tax, or PAT to explain the conversion.
- EBITDA declined 6.2% sequentially to ₹1,342 lakh and margin contracted 149bps despite revenue from operations increasing 3.0%.
- PAT and EPS were not disclosed, limiting assessment of bottom-line earnings quality and per-share progression.
Research and educational content only. Not investment advice.