Q2 FY27 results analysis · November 05, 2026
Schneider Electric Infrastructure Q2 FY27 Results Analysis: PAT Falls 43%, Revenue Grows 19.84%
−43.3%PAT year on year, Rs. 29.65 Cr
Source: Quarterly results filing (NSE)
Quick summary
Schneider Electric Infrastructure Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 779.12 Cr (+19.84% YoY) and PAT growth of -43.33% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 779.12 Cr (+19.84% YoY) |
| PAT (Q2) | Rs. 29.65 Cr (-43.33% YoY) |
| EBITDA margin | 8.35% (-522 bps YoY) |
| EPS (Q2) | Rs. 1.24 (-43.38% YoY) |
Quarter Snapshot
Revenue accelerated to +19.84% YoY (Rs.779.12 Cr) with EBITDA margin recovering 206 bps QoQ to 8.35%, but PAT fell 43.33% YoY as the material-cost ratio worsened 433 bps YoY on commodity inflation and legacy fixed-price orders. Cash conversion was the weakest element — H1 CFO was −Rs.29.15 Cr with a Rs.115.40 Cr inventory build pushing net debt up Rs.122.3 Cr. The Rs.211 Cr KMVC capacity expansion and sequential margin recovery are the forward markers, but no numerical FY27 guidance exists to benchmark against.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue in-line-to-ahead on flow; execution the gating factor | Revenue +19.84% YoY, +19.61% QoQ (lock: revenue_yoy_q2_pct) | Played out |
| Q2 order intake vs Rs.838 Cr base; backlog vs Rs.2,169 Cr | Not disclosed in the filing | Not observable |
| Gross margin flat-to-compressing YoY; pass-through lag persists | Material ratio 65.35% vs 61.02% YoY (+433 bps) | Played out |
| Margins compressing again — commodity basket worsened in window | EBITDA Rs.65.09 Cr, −26.24% YoY; margin 8.35% vs 13.57% | Played out |
| Q2 revenue beats Q1 per seasonality claim | Rs.779.12 Cr vs Rs.651.36 Cr (+19.61% QoQ) | Played out |
| Working-capital deterioration / weak cash conversion | CFO −Rs.29.15 Cr; FCF −Rs.93.97 Cr; inventory days 105 vs 84 | Played out |
| USD import-content drag keeps other expenses elevated | Other expenses +22.44% YoY; filing attributes nothing to FX — direction only | Partially |
| DGTR CRGO probe / BIS Scheme X — no confirmed cost shock | No charge visible in the P&L; filing silent | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Execution pickup to double digits ("execution will pick up and move into double digits soon") | Q2 FY26 earnings call | Q2FY27 revenue +19.84% YoY, +19.61% QoQ; H1 +12.48% | Met |
| Q2 seasonality ("historically we always do better than Q1") | Q1 FY27 earnings call | Revenue Rs.779.12 Cr vs Q1 Rs.651.36 Cr; EBITDA Rs.65.09 Cr vs Rs.40.96 Cr | Met |
| Full-year operating leverage ("you will find this leverage even in the overall results") | Q2 FY26 earnings call | FY26 EBITDA margin closed at 13.45% vs 15.4% in FY25 — promise missed; H1FY27 margin 7.41% keeps the question open for FY27 — FY26 outcome | Missed |
| KMVC Rs.211 Cr capex by end FY2028-29 | Board approval announced Oct 29, 2026 | CWIP +Rs.61.14 Cr in H1; borrowings +Rs.11.93 Cr — spend begun, debt-supported | On Track |
| No dividend for FY26 | FY26 results communication | No dividend paid in H1FY27 | Met |
| "Margins should even out over the year" (commodity lag, operating leverage, FX, Kolkata depreciation) | Q1 FY27 earnings call | Margin recovered 206 bps QoQ but is still −522 bps YoY; material ratio worsened further QoQ (+74 bps) — direction right sequentially | Too Early |
| "We have not delayed the price action… initiated the price hike right when we started witnessing it" | Q1 FY27 earnings call | Material ratio still +433 bps YoY; filing gives no price/mix attribution | Too Early |
| Confident in "healthy pipeline… to deliver a good performance in the remaining three quarters" | Q1 FY27 earnings call | Q2 revenue/EBITDA/PAT all up sharply QoQ; order intake not disclosed in this filing — delivery half visible, pipeline not | Partially |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Order intake (Rs. Cr) | 838 | 909 | 772 | 915 (highest ever) | not disclosed in filing |
| Backlog (Rs. Cr) | 1,805 | 1,707 | 1,911 | 2,169 | not disclosed in filing |
Key Investment Insights
Key Positives
- Revenue grew 19.84% YoY to Rs.779.12 Cr and 19.61% QoQ, the first double-digit quarter of FY27
- EBITDA margin recovered 206 bps sequentially from 6.29% to 8.35%
- Q2 EBITDA of Rs.65.09 Cr was up 58.91% QoQ from Rs.40.96 Cr
- Employee costs fell 1.24% QoQ, with the +25.2% YoY jump a base effect of Q1 annual increments
- D/E improved to 0.68x from 0.71x as equity grew faster than debt
- Rs.211 Cr KMVC Kolkata expansion approved with CWIP spend already underway (Rs.163.04 Cr vs Rs.101.90 Cr in March)
Risk Factors
- PAT fell 43.33% YoY to Rs.29.65 Cr as material costs grew 28.36% YoY, faster than revenue
- Material-cost ratio deteriorated 433 bps YoY to 65.35% and worsened 74 bps QoQ, indicating the commodity pass-through lag persists
- EBITDA margin of 8.35% remains 522 bps below the year-ago 13.57%
- H1 operating cash flow was −Rs.29.15 Cr (CFO/PAT −0.69x) and FCF −Rs.93.97 Cr, with growth carried on the balance sheet
- Net debt rose Rs.122.3 Cr to Rs.312.72 Cr and cash fell Rs.110.33 Cr, with inventory days up to 105 from 84
- GST litigation orders totalling ~Rs.10.5 Cr continue as an overhang, with the Gurugram appeal rejected on Nov 3, 2026
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