Rubicon Research Q2 FY27 Results Analysis: PAT Surges 67.92%, Margin Tops Guidance
Rubicon Research Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 576.38 Cr (+39.89% YoY) and PAT growth of +67.92% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 576.38 Cr (+39.89% YoY) |
| PAT (Q2) | Rs. 90.43 Cr (+67.92% YoY) |
| EBITDA margin | 25.00% (+211 bps YoY) |
| EPS (Q2) | Rs. 5.41 (+55.00% YoY) |
Quarter Snapshot
Q2 FY27 delivered 39.89% YoY revenue growth and 67.92% PAT growth with Operating EBITDA margin at 25.00%, running 161 bps above management's ≥23% FY27 guidance floor despite input-cost escalation. Growth is partly acquisition-led (Arinna contributed ~33% of PAT; standalone revenue fell 10.32% QoQ), and cash conversion remains weak at 0.56x CFO/PAT. Key upcoming catalysts are Pithampur commercialization in Q1 CY27 and the New Jersey facility in CY2027.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely in-line to ahead on the YoY base" | +39.89% YoY, +7.87% QoQ | Played out |
| USD revenue rebound after Q1's tactical dip | rebound expected | Quarterly USD revenue not disclosed in filing | Not observable |
| EBITDA margin vs ≥23% guide; cost kicks-in risk | hold near 24.2% or moderate | 25.00%, above Q1's 24.16% — better than feared | Played out |
| Gross margin 67–68% band sustainability | test vs freight spike | 68.63% P&L-basis | Played out |
| Input/freight escalation | "compressing pressures at the edges" | Materials +13.94% QoQ vs revenue +7.87%; margin still expanded — pressure visible, absorbed | Partially |
| GST-refund normalization in Q2 CFO | "the quarter's clearest testable promise" | Q2-derived CFO Rs.70.36 Cr vs Rs.28.5 Cr — directional | Played out |
| Cash conversion / NWC | key watch item | H1 CFO/PAT 0.56×; NWC days not derivable | Partially |
| Finance costs stable | stable | Rs.11.41 Cr flat YoY | Played out |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Operating EBITDA margin ≥23% for FY27 (revised up from 22–23%) | Q1 FY27 earnings call (Aug 14, 2026) | 25.00% in Q2; 24.61% H1 | On Track |
| R&D expense 10–11% of operating revenue | management guidance, recent calls | 11.22% in Q2; 11.23% H1 — upper edge | On Track |
| R&D spend Rs.500 Cr over nine quarters (FY26–Q1 FY28) | earnings calls ("remains high confidence; we are on track") | Rs.198.87 Cr (FY26) + Rs.124.73 Cr (H1 FY27) = Rs.323.60 Cr (65% done, 7 of 9 quarters left) | On Track |
| Gross margin 67–68% once Pithampur ramps | management commentary on prior calls | 68.63% P&L-basis (company's product-sales basis not published this filing) — proxy basis | On Track |
| Finance costs stable, not decreasing | Q4 FY26 earnings call | Rs.11.41 Cr vs Rs.11.42 Cr YoY | Met |
| Pithampur commercialization Q1 CY27; New Jersey CY2027 | management commentary / Oct 30, 2026 inspection disclosure | Not addressed in this filing | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 39.89% YoY to Rs.576.38 Cr; H1 FY27 revenue Rs.1,110.72 Cr, up 45.28% YoY
- PAT grew 67.92% YoY to Rs.90.43 Cr; diluted EPS Rs.5.41 vs Rs.3.47 in Q2 FY26
- Operating EBITDA margin reached 25.00% in Q2 (22.89% in Q2 FY26, 24.16% in Q1 FY27); H1 at 24.61% vs the ≥23% FY27 guidance floor
- Gross margin held at 68.63% within the 67–68% target band despite input/freight cost escalation
- Q2-derived operating cash flow of Rs.70.36 Cr vs Rs.28.5 Cr in Q1 as GST refunds normalized
- R&D spend at 11.22% of revenue, on track toward the Rs.500 Cr nine-quarter target (Rs.323.60 Cr, 65% done)
- Effective tax rate fell to 22.66% from 24.90% YoY, not driven by deferred tax
Risk Factors
- Standalone revenue fell 10.32% QoQ and standalone PAT fell 26.48% QoQ, indicating consolidated growth is substantially acquisition-led
- Cost of materials consumed rose 13.94% QoQ against 7.87% QoQ revenue growth on input/freight escalation
- H1 CFO/PAT at 0.56x and CFO/EBITDA at 0.35x; receivables built Rs.80.96 Cr and inventories Rs.57.88 Cr in H1
- Net debt rose to Rs.189.36 Cr from Rs.73.72 Cr at Mar-26 to fund the Arinna acquisition
- Four subsidiaries reviewed by other auditors reported Rs.25.15 Cr H1 net loss on Rs.70.73 Cr H1 revenue
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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.