Belrise Industries Q2 FY27 Results Analysis: PAT Jumps 25%, EBITDA Margin Recovers 52 bps
Belrise Industries Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,746.38 Cr (+16.69% YoY) and PAT growth of +25.24% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,746.38 Cr (+16.69% YoY) |
| PAT (Q2) | Rs. 166.55 Cr (+25.24% YoY) |
| EBITDA margin | 12.04% (-54 bps YoY) |
| EPS (Q2) | Rs. 1.75 (+7.36% YoY) |
Quarter Snapshot
Belrise delivered 16.69% consolidated revenue growth and 25.24% PAT growth, within its mid-teens FY27 revenue guidance, with EBITDA margin recovering 52 bps QoQ to 12.04% after four quarters of decline. The Rs.1,700 cr QIP swung the balance sheet to net cash of Rs.739.95 cr, though margin remains 54 bps below year-ago levels and holding the 'broadly stable' FY27 margin guide requires an H2 margin of roughly 12.4-12.5%. Employee cost inflation of 46.56% YoY and a negative subsidiary contribution remain the key pressure points.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Growth "pinned near the lower boundary of the mid-teens band, as Q1's +12.57% was" | +16.69% YoY consolidated; H1 +14.67% — came in above the predicted pin | Contradicted |
| "58 bps margin gap… more likely to persist than to close" | Gap to FY26's 12.13% narrowed to −9 bps; +52 bps QoQ | Partially |
| QIP → "decisive shift toward net cash", lower finance cost, higher other income | Net cash Rs.739.95 cr; finance −21.79%; other income +34.85% | Played out |
| Trading "likely remains the drag" | Purchases −11.49% YoY but +24.90% QoQ; revenue split absent | Not observable |
| Steel/polymer squeeze to compress margins | Materials ratio −107 bps YoY; standalone flat; only an inventory build (−Rs.46.32 cr) hints at it | Contradicted on filing evidence |
| Staff-cost ramp pressure | Employee +46.56% YoY, ratio +91 bps | Played out |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Mid-teens consolidated revenue growth, FY27 | Q4 FY26 call: "We expect to continue delivering mid-teens revenue growth…" | Q2 +16.69% YoY; H1 +14.67% | On Track |
| EBITDA margin broadly stable vs FY26 (12.13%) | Q1 FY27 call: "We expect EBITDA margins to remain broadly stable as compared to our FY26 levels" | Q2 12.04% (−9 bps vs FY26); H1 11.79% (−34 bps) | Stretch |
| Belrise SDM EBITDA-positive in 2027 | Q4 FY26 call | Not derivable from filing | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 16.69% YoY to Rs.2,746.38 cr, within management's mid-teens FY27 guidance; standalone revenue grew 23.52% YoY
- Consolidated PAT grew 25.24% YoY to Rs.166.55 cr and 36.90% QoQ
- EBITDA margin recovered 52 bps QoQ to 12.04%, the first recovery after four quarters of decline
- Rs.1,700 cr QIP (July 17, 2026) swung the company to net cash of Rs.739.95 cr from net debt of Rs.597.73 cr at March 2026
- Finance costs fell 21.79% YoY to Rs.43.71 cr on deleveraging
- H1 consolidated CFO of Rs.491.15 cr was 1.70x PAT
- Materials cost ratio fell 107 bps YoY to 79.66% despite pre-result steel/polymer price concerns
- Net worth rose 36.37% since March 2026 to Rs.7,127.18 cr
Risk Factors
- EBITDA margin of 12.04% remains 54 bps below Q2 FY26's 12.58% and 9 bps below the FY26 base of 12.13% against which the 'broadly stable' guide is set
- Employee costs rose 46.56% YoY, with the employee cost ratio up 91 bps YoY to 4.45%
- Inventory build of Rs.46.32 cr (changes-in-stock line) created a ~Rs.50 cr adverse QoQ P&L swing
- Subsidiary contribution fell 22.69% YoY to Rs.7.82 cr (4.70% of consolidated PAT), with the non-standalone perimeter a drag on group growth
- Holding FY27 'broadly stable' margin guidance requires an H2 EBITDA margin of roughly 12.4-12.5%, above any quarter printed since Q2 FY26
- FCF was negative at Rs.175.08 cr on capex of Rs.666.24 cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.