Indo-MIM Ltd (INDOMIM) Q2 FY27 Results Analysis: PAT Jumps 23%, Sequential Momentum Fades
Indo-MIM Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,271.84 Cr (+14.31% YoY) and PAT growth of +99.95% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,271.84 Cr (+14.31% YoY) |
| PAT (Q2) | Rs. 215.19 Cr (+99.95% YoY) |
| EBITDA margin | 29.87% (+209 bps YoY) |
| EPS (Q2) | Rs. 4.38 (+96.41% YoY) |
Quarter Snapshot
Q2 FY27 revenue accelerated to +14.31% YoY with normalized PAT up 23.37% YoY and EBITDA margin up ~209 bps YoY, but sequential momentum faded with EBITDA margin down ~349 bps QoQ and PAT down 10.39% QoQ. The IPO-funded Rs.400 Cr debt repayment cut finance costs 38.83% YoY and net debt fell Rs.153.57 Cr since March, though working capital absorbed cash (CFO/EBITDA 0.60x) with receivables up 30% and a deepening inventory build. No prior management guidance exists in the source, so no guidance beats are claimed.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue momentum | "revenue momentum holding or improving" on record SIAM/IIP prints | +14.31% YoY consolidated, accelerating from Q1's ~+9.4% | Played out |
| Reported margins | "flat-to-compressing at the reported level" | 29.87% vs Q1 33.36% (−349 bps QoQ) but +209 bps YoY | Partially |
| Inventory-build reversal | Q1's build "may reverse in future quarters" | Build deepened: Rs.61.53 Cr in Q2 vs Rs.40.01 Cr in Q1 | Contradicted |
| Interest-cost trajectory | Reconcile FY26 spike vs Q1 decline | Finance costs −38.83% YoY consolidated, −45.11% standalone | Played out |
| Overseas-subsidiary drag | Quantify vs FY26 loss run-rate | Q2 drag Rs.5.13 Cr; H1 net contribution +Rs.11.82 Cr | Partially |
| USD/INR tailwind; US tariff incidence | Translation tailwind; pass-through overhang | No geography/currency disclosure in filing | Not observable |
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Key Investment Insights
Key Positives
- Consolidated revenue grew 14.31% YoY to Rs.1,271.84 Cr, accelerating from ~9.4% YoY in Q1; H1 revenue up 11.85% YoY
- Normalized PAT grew 23.37% YoY to Rs.215.19 Cr (headline +99.95% vs prior-year quarter that included a Rs.92.66 Cr exceptional charge)
- EBITDA margin expanded ~209 bps YoY to 29.87%; EBITDA grew 22.89% YoY to Rs.379.85 Cr
- Finance costs fell 38.83% YoY to Rs.26.98 Cr after full Rs.400 Cr repayment of borrowings from IPO proceeds
- Net debt (incl. leases) fell Rs.153.57 Cr since March 2026 to Rs.743.76 Cr even after Rs.329.22 Cr of dividend payments
- FCF remained positive at Rs.213.02 Cr in H1 with capex of Rs.257.35 Cr funded alongside dividends and debt repayment
- Cost of materials fell to 22.25% of revenue from 25.30% YoY
Risk Factors
- EBITDA margin compressed ~349 bps QoQ to 29.87% from 33.36% in Q1; PAT fell 10.39% QoQ
- Other expenses grew 21.31% YoY, outpacing revenue growth and pressuring margins
- Inventory build deepened to Rs.61.53 Cr in Q2 from Rs.40.01 Cr in Q1 (H1 build Rs.101.54 Cr vs Rs.29.34 Cr in H1 FY26), flattering reported margin
- Trade receivables rose 30% since March to Rs.994.79 Cr; CFO/EBITDA at 0.60x and CFO/PAT at 1.03x vs 1.97x a year ago
- Effective tax rate rose to 30.47% from 27.91% YoY, a ~256 bps drag; tax expense grew 126.28% YoY
- Overseas subsidiaries swung from a +Rs.16.95 Cr contribution in Q1 to a Rs.5.13 Cr drag in Q2
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