PTC Industries Q2 FY27 Results Analysis: PAT Jumps 83%, EBITDA Margin Expands 446 bps (PTCIL)
PTC Industries Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 224.32 Cr (+79.99% YoY) and PAT growth of +83.48% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 14, 2026 |
|---|---|
| Revenue (Q2) | Rs. 224.32 Cr (+79.99% YoY) |
| PAT (Q2) | Rs. 33.28 Cr (+83.48% YoY) |
| EBITDA margin | 25.10% (+446 bps YoY) |
| EPS (Q2) | Rs. 22.20 (+83.47% YoY) |
Quarter Snapshot
Q2 FY27 consolidated revenue grew 79.99% YoY to Rs.224 Cr with PAT up 83.48% and EBITDA margin up 446 bps YoY to 25.10%, driven by operating leverage as expense growth trailed revenue growth by 804 bps. Subsidiaries Aerolloy and Trac contribute 85.83% of consolidated PAT, validating the integrated titanium/superalloy platform backed by wins from Airbus, Safran LEAP, Blue Origin, and Honeywell. Key watch items are negative H1 CFO of Rs.(854) Lakh, finance costs up 220.40% YoY, and margin still 1,050 bps below the Q4 FY26 peak, though the Rs.1,800 Cr QIP completed in Oct 2026 materially strengthens the balance sheet.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin improvement "as integration progresses" | Mgmt, Q2 FY26 commentary | EBITDA margin 25.10% (Q2 FY27) vs 20.64% (Q2 FY26) — +446 bps YoY — margin expanded | Directionally consistent |
| Margin recovery "once facilities ramp up" | Mgmt, FY26 commentary | EBITDA margin 25.10% vs Q1 FY27 25.50% — compressed 40 bps QoQ; vs Q4 FY26 35.6% (from notes) — significant gap from peak — margin below peak, ramp-up ongoing | Not yet visible |
| Trac stabilization "progressively" | Mgmt, H1 FY26 commentary | Implied subsidiary PAT contribution 85.83% (up from lower base); Trac FY26 margin ~6.28% (derived from notes) | Directional improvement but remains dilutive |
| "Aerolloy continued to emerge as a key growth driver" | CMD, Q1 FY27 commentary | Subsidiaries contribute 85.83% of consolidated PAT (Rs.2,856 Lakh of Rs.3,328 Lakh) — Aerolloy/Trac driving profits | Confirmed |
| "Operating leverage beginning to come through" | CMD, Q1 FY27 commentary | Total expense growth 71.95% YoY vs revenue growth 79.99% YoY — positive gap of 804 bps — expense growth trails revenue | Confirmed |
| "Margin compression temporary during ramp-up" | Mgmt, FY26 commentary | EBITDA margin 25.10% in Q2 FY27 vs FY26 average 28.58% — still below FY26 average — margin recovering YoY but below FY26 peak | Partially confirmed |
| "Trac operations expected to progressively stabilize" | Mgmt, H1 FY26 commentary | Implied subsidiary PAT margin improving; Trac FY26 margin ~6.28% per notes vs earlier losses — stabilization underway | Directional progress |
| "Strong multi-year revenue visibility" | Mgmt, Q3 FY26 onwards | Major wins announced (Airbus, Safran LEAP, Blue Origin, Honeywell LTA) — orders not quantified but pipeline validates — order book not disclosed | Cannot fully assess |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | Trend |
|---|---|---|---|---|---|---|
| Consolidated EBITDA Margin (%) | 25.5% | 20.9% | 35.6% | 27.5% | 25.10% | Volatile — peaked Q4 FY26 |
| Consolidated PAT Margin (%) | 13.7% | 11.1% | 25.2% | 14.8% | 14.84% | Improving YoY |
| ATL EBITDA Margin (%) | — | — | — | 45.0% | — | Strong at subsidiary level |
| Trac EBITDA Margin (%) | — | — | 6.28% | — | — | Dilutive but improving |
Key Investment Insights
Key Positives
- Consolidated revenue grew 79.99% YoY to Rs.22,431.91 Lakh and 16.96% QoQ
- PAT grew 83.48% YoY to Rs.3,327.81 Lakh; H1 PAT grew 168.14% YoY to Rs.6,247.08 Lakh
- EBITDA margin expanded 446 bps YoY to 25.10%
- Total expenses grew 71.95% YoY vs revenue growth of 79.99% — operating leverage of 804 bps
- Cost of materials consumed grew only 7.84% YoY against 79.99% revenue growth
- Receivables days improved to 63.1 days from 83.1 days; trade receivables grew only 3.09% vs 87.68% H1 revenue growth
- Effective tax rate declined to 17.69% from 21.02% YoY
- Rs.1,800 Cr QIP completed in Oct 2026 at Rs.21,060/share, strengthening the balance sheet post-quarter
Risk Factors
- Finance costs surged 220.40% YoY to Rs.595.50 Lakh as borrowings rose from Rs.26,134 Lakh to Rs.39,060 Lakh
- H1 CFO was negative at Rs.(854.49) Lakh with free cash flow of Rs.(21,550.87) Lakh amid heavy capex
- EBITDA margin compressed 40 bps QoQ and remains 1,050 bps below the Q4 FY26 peak of 35.6%
- Standalone PAT declined 42.22% YoY to Rs.471.72 Lakh while consolidated PAT grew 83.48%
- Other income declined 38.33% YoY to Rs.505.66 Lakh
- Trac Precision Solutions remains margin-dilutive with FY26 EBITDA margin of ~6.28%
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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.