Wendt India Q2 FY27 Results (NSE: WENDT)
Signal: Margin expansion
The read
The operating inflection is real but incomplete: standalone EBITDA margin recovered to about 18.7%, up 212bps YoY after contraction in the prior four quarters, and PAT rose 38.2% to ₹629 lakh; however, gross margin fell 378bps to 62.8%, Machines and Accessories remained in a ₹202 lakh segment loss, and subsidiaries reported an ₹84 lakh quarterly net loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹59.92 Cr | +18.9% | -2.1% |
| EBIT | ₹7.7 Cr | +56.2% | |
| Net profit | ₹6.29 Cr | +38.2% | |
| EPS | ₹31.45 | +38.3% | |
| EBIT margin | 18.7% |
P&L walk
The filing discloses subsidiary revenue of ₹1,403 lakh and subsidiary net loss of ₹84 lakh for the quarter, but the consolidated P&L face is not legible in the supplied filing text; therefore consolidated headline P&L lines are not populated.
Segments
Super Abrasives drove the standalone result with revenue of ₹4,572 lakh, +22.1% YoY, and segment result of ₹967 lakh, +49.2%; Machines and Accessories grew revenue 51.8% YoY but remained loss-making at ₹202 lakh, while subsidiaries added ₹1,403 lakh of revenue and ₹84 lakh of net loss at the consolidated level.
Key positives
- Standalone revenue reached ₹5,992 lakh, +18.9% YoY, with Super Abrasives revenue of ₹4,572 lakh, +22.1% YoY.
- EBITDA grew approximately 34.0% YoY versus revenue growth of 18.9%, a +15.1pp gap, while employee costs grew 8.9%, depreciation 2.3% and finance costs were flat; EBITDA margin expanded 212bps to about 18.7%.
- PAT increased 38.2% YoY to ₹629 lakh and EPS increased 38.3% to ₹31.45, with PAT and EPS tracking closely.
- Machines and Accessories revenue increased 51.8% YoY to ₹756 lakh, indicating demand recovery despite the segment's current ₹202 lakh loss.
Key concerns
- Gross margin compressed 378bps YoY to 62.8%, with combined material, purchase and inventory costs rising to ₹2,231 lakh from ₹1,685 lakh; the filing does not disclose the reason.
- Machines and Accessories remained loss-making at ₹202 lakh in Q2FY27 versus a ₹131 lakh loss YoY, despite 51.8% revenue growth.
- The two wholly owned subsidiaries generated ₹1,403 lakh of quarterly revenue but reported a combined ₹84 lakh net loss, limiting the benefit of consolidated growth.
- Trade receivables increased to ₹5,379 lakh from ₹4,759 lakh at March 2026 and inventories rose to ₹4,734 lakh from ₹4,617 lakh, while H1 operating cash flow fell to ₹1,296 lakh from ₹1,457 lakh.
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