Linde India Q2 FY27 Results Analysis: PAT Plunges 31%, Revenue Rises 12% (LINDEINDIA)
Linde India Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 7,231.97 Cr (+12.26% YoY) and PAT growth of -30.52% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,231.97 Cr (+12.26% YoY) |
| PAT (Q2) | Rs. 118.81 Cr (-30.52% YoY) |
| EBITDA margin | 32.55% (-1158 bps YoY) |
| EPS (Q2) | Rs. 13.93 (-30.52% YoY) |
Quarter Snapshot
Revenue grew 12.26% YoY to Rs.7,231.97 cr (Rs.723.20 cr in crore terms as presented) but PAT fell 30.52% YoY on power-cost base effects, materials inflation, and a 401.90% YoY rise in finance costs following Rs.950 cr of borrowings. The Kalinganagar 2×1,800 TPD ASU transfer to Tata Steel was completed on 30 Sep 2026, providing a confirmed H2 growth catalyst, while the SEBI RPT matter with a 6 Nov 2026 Supreme Court hearing and modified auditor conclusions remains an unresolved overhang. No prior FY27 guidance exists in the record, so no guidance beat or miss can be established.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand — "likely ahead to in-line" (IIP +6.7–8.0% monthly; crude steel +1.9% to +4.6% monthly, Apr–Sep +2.9%, per pre-call note, web-sourced) | Firm derived demand | Revenue +12.26% YoY, +4.15% QoQ | Played out |
| Margins — "pressure building through the quarter — watch for compression" (Sept power spike, per pre-call note, web-sourced) | Compression risk | Standard EBITDA margin 32.55% vs 44.13% YoY; power & fuel +209.43% YoY, flat QoQ | Played out |
| PAT trajectory — "revenue growth may not fully reach PAT" (Q1 pattern) | PAT lagging revenue | PAT −30.52% YoY vs Q1's −2.42% — the pattern intensified | Played out |
| Finance-cost trend | Rising | Rs.15.81 cr vs Rs.5.94 cr QoQ (+166.16%) on the Rs.950.00 cr loan | Played out |
| Kalinganagar — "essentially none of the 2×1,800 TPD contribution" in Q2 | H2 FY27 event | Supply commenced 30 Sep 2026; Gases revenue +0.42% YoY (no contribution) | Played out |
| PED execution vs order book | Hinges on cadence | Revenue −0.55% YoY, result −13.74% YoY | Partially |
| SEBI/RPT overhang update | Persists unresolved | Supreme Court hearing 6 Nov 2026; impact "not determinable" per the filing | Not observable |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| "Supply of industrial gases to Tata Steel commenced effective 30 Sep 2026" (Conveyance Deed for 2×1,800 TPD ASUs) | Company announcement of 30 Sep 2026, in the filing | PPE +Rs.1,446.38 cr in 6M, CWIP −Rs.251.71 cr; Gases revenue still flat (+0.42% YoY) — asset on books, no P&L contribution yet | Confirmed |
| "Productivity initiatives… drive cost efficiencies supporting improved margins" (management's stated margin driver, FY25 Directors' Report) | FY25 Directors' Report, quoted in prior-quarter notes | Q2 FY27 standard EBITDA margin 32.55% vs 44.13% YoY; both segments' margins compressed YoY | Contradicted this quarter |
| "Expansion in key industrial clusters including Dahej" (FY26 AGM recap) | 90th AGM (13 Aug 2026) | CWIP Rs.1,091.07 cr at 30 Sep 2026; H1 capex Rs.1,376.49 cr — directionally | Confirmed |
| FY26 EBITDA Rs 9,764 Mn (+17%) as the margin yardstick | 90th AGM (13 Aug 2026) | Reproduced at Rs.976.38 cr on the company basis; H1 FY27 EBITDA −9.48% YoY — trajectory now running against it | Confirmed as reported; FY27 tracking below that pace |
Key Numbers, Quarter by Quarter
| Metric | FY25 | FY26 | Q2 FY27 |
|---|---|---|---|
| Merchant deliveries (TPD) | 2,107 | 2,360 (+12%) | Not disclosed in the filing — cannot assess |
| Installed capacity (TPD) | — | 20,000 | Not updated in the filing |
| PED third-party order book | — | ~Rs.2,000 cr | Not updated in the filing |
| Renewable share of power | 7.59% | 22% | Not updated in the filing |
Key Investment Insights
Key Positives
- Revenue grew 12.26% YoY to Rs.723.20 cr and 4.15% QoQ, entirely organic with no Kalinganagar contribution
- PAT improved 13.60% QoQ to Rs.118.81 cr after Q1's decline
- EBITDA margin recovered sequentially to 32.55% (standard) from Q1's 29.12% on flat power cost
- Kalinganagar 2×1,800 TPD ASU transfer completed 30 Sep 2026; gas supply to Tata Steel commenced, contributing from Q3 onward
- JV share of profit rose 93.97% YoY to Rs.3.86 cr
- Equity grew 2.86% in six months to Rs.4,388.36 cr despite Rs.102.50 cr dividends paid
Risk Factors
- PAT fell 30.52% YoY to Rs.118.81 cr while revenue grew 12.26% YoY
- EBITDA margin compressed to 32.55% from 44.13% YoY; Gases segment margin fell to 28.45% from 38.52%
- Power and fuel cost rose 209.43% YoY to 17.74% of revenue
- Finance costs rose 401.90% YoY to Rs.15.81 cr after Rs.950 cr borrowings; net debt of Rs.743.88 cr vs nil at 31 Mar 2026
- FCF negative at −Rs.665.31 cr in H1 on capex of Rs.1,376.49 cr
- Auditor modified conclusions on SEBI RPT matters with impact 'presently not determinable'; Supreme Court hearing listed 6 Nov 2026
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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.