Q2 FY27 results analysis · November 06, 2026
3M India Ltd (3MINDIA) Q2 FY27 Results Analysis: PAT Falls 17%, EBITDA Margin Compresses 505 bps
−17.2%PAT year on year, Rs. 158.48 Cr
Source: Quarterly results filing (BSE)
Quick summary
3M India Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,452.49 Cr (+14.69% YoY) and PAT growth of -17.17% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,452.49 Cr (+14.69% YoY) |
| PAT (Q2) | Rs. 158.48 Cr (-17.17% YoY) |
| EBITDA margin | 16.12% (-505 bps YoY) |
| EPS (Q2) | Rs. 140.68 (-17.19% YoY) |
Quarter Snapshot
Revenue grew 14.69% YoY to Rs 1,452.49 cr with all four segments up, but PAT fell 17.17% to Rs 158.48 cr as the material-cost ratio deteriorated 644 bps YoY to 62.12% on INR depreciation and Middle East input-cost inflation. EBITDA margin compressed 505 bps YoY to 16.12%, declining for five straight data points, with Safety & Industrial margin halved to 6.91%. Offsetting supports include a debt-free balance sheet with Rs 597 cr cash, six-month FCF of Rs 265.61 cr, the Solventum distribution extension to March 2031, and US$13 mn Thermo Fisher compensation not yet booked.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| "double-digit YoY growth streak (5 quarters, 19.0% in Q1) has a reasonable chance of extending to a sixth" | Revenue +14.69% YoY | Played out |
| "is segment breadth intact… or narrowing toward the weakest segments?" | All four segments up YoY, but Health Care slowed to +4.15% (from +23.5% in Q1) and S&I fell 2.80% QoQ | Partially |
| "EBITDA margin likely remains well below the 21.49% YoY-ago level" | 16.12% vs 21.17% YoY-ago (company basis), −505 bps | Played out |
| "whether EBITDA stabilises after Rs.250 Cr (Q1) / Rs.269 Cr (Q4 FY26)" | Fell further to Rs.234.20 cr, −6.21% QoQ | Contradicted |
| "recognition/timing of the US$13 Mn Thermo Fisher compensation" | Not recognized — non-adjusting subsequent event (P&L note 8) — not booked in Q2 | Not observable |
| "H2 lapping of the Rs.73.13 Cr Pimpri land gain" | No exceptional in Q2; reported-vs-normalized gap now closed (Q2 PAT = normalized PAT) | Played out |
| "quantification of the INR impact vs price/mix for Q2" | MD cites INR depreciation + Middle East input-cost inflation; no quantum disclosed — unquantified | Not observable |
| "execution of the LMRA amendment (due within 30 calendar days of Oct 26, 2026)" | Press release (6 Nov 2026) confirms the Solventum distribution relationship extended to 31 March 2031 | Played out |
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Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| "Registered revenue growth in Q2 FY26 of 14.7% on a YoY basis" (press release) | +14.69% computed | Confirmed |
| "All businesses segments… registered revenue growth on a YoY basis" | All four segments up YoY (S&I +11.79%, T&E +23.39%, HC +4.15%, Consumer +19.50%) | Confirmed |
| Segment growth: T&E 23.4%, Consumer 19.5%, S&I 11.8%, Healthcare 4.1% | 23.39 / 19.50 / 11.79 / 4.15 | Confirmed |
| PAT decline of 17.2% "primarily due to the impact of Indian Rupee depreciation and the input cost inflation due to the Middle East crisis" | PAT −17.17%; material-cost ratio +644 bps YoY to 62.12%; segment margins down in 3 of 4 segments; quantum of FX vs input cost not disclosed — Too Early to fully adjudicate the attribution | Consistent with numbers, unquantified |
| 6th consecutive quarter of double-digit YoY sales growth (watch item from prior-quarter notes) | +14.69% | Confirmed |
| "Remains optimistic" outlook despite volatility/protectionism/tariffs (prior commentary) | Underlying profit fell for the second straight quarter; margin at a multi-quarter low of 16.12% | Tension evident; Too Early |
Key Investment Insights
Key Positives
- Revenue grew 14.69% YoY to Rs 1,452.49 cr, the sixth consecutive quarter of double-digit YoY growth
- All four segments grew YoY: T&E +23.39%, Consumer +19.50%, S&I +11.79%, Health Care +4.15%
- Consumer was the only segment expanding margin, up 40 bps YoY to 17.23% with result up 22.36%
- Employee costs grew only 5.34% YoY (ratio improved to 8.77% from 9.55%) and other expenses 8.24% (13.75% vs 14.57%)
- Six-month FCF of Rs 265.61 cr; CFO/normalized PAT of 0.89x; inventories drawn down Rs 21.50 cr
- Balance sheet debt-free apart from leases with Rs 597.33 cr cash; Solventum healthcare distribution relationship extended to 31 March 2031
- US$13 mn one-time compensation from Thermo Fisher approved (26 October 2026) for terminated rights on specified products, not yet booked
Risk Factors
- EBITDA margin fell 505 bps YoY to 16.12% (company basis), declining for five straight data points (21.17 → ~19.2 → 17.54 → 16.12%)
- Material-cost ratio deteriorated 644 bps YoY to 62.12% as material costs rose 27.95% vs 14.69% revenue growth
- PAT declined 17.17% YoY to Rs 158.48 cr; PBT declined 15.35% YoY
- Safety & Industrial segment result collapsed 54.2% YoY (Rs 68.21 cr to Rs 31.24 cr) with margin halved to 6.91% despite revenue up 11.79%
- Health Care revenue growth slowed to 4.15% YoY from 23.5% in Q1; S&I revenue fell 2.80% QoQ
- Effective tax rate rose ~165 bps YoY to 25.36%, an incremental PAT drag
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