3M India Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,452.49 Cr (+14.69% YoY) and PAT growth of -17.17% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,452.49 Cr (+14.69% YoY) |
| PAT (Q2) | Rs. 158.48 Cr (-17.17% YoY) |
| EBITDA margin | 16.12% (-505 bps YoY) |
| EPS (Q2) | Rs. 140.68 (-17.19% YoY) |
Revenue grew 14.69% YoY to Rs 1,452.49 cr with all four segments up, but PAT fell 17.17% to Rs 158.48 cr as the material-cost ratio deteriorated 644 bps YoY to 62.12% on INR depreciation and Middle East input-cost inflation. EBITDA margin compressed 505 bps YoY to 16.12%, declining for five straight data points, with Safety & Industrial margin halved to 6.91%. Offsetting supports include a debt-free balance sheet with Rs 597 cr cash, six-month FCF of Rs 265.61 cr, the Solventum distribution extension to March 2031, and US$13 mn Thermo Fisher compensation not yet booked.
| Driver | What happened | Verdict |
|---|---|---|
| "double-digit YoY growth streak (5 quarters, 19.0% in Q1) has a reasonable chance of extending to a sixth" | Revenue +14.69% YoY | Played out |
| "is segment breadth intact… or narrowing toward the weakest segments?" | All four segments up YoY, but Health Care slowed to +4.15% (from +23.5% in Q1) and S&I fell 2.80% QoQ | Partially |
| "EBITDA margin likely remains well below the 21.49% YoY-ago level" | 16.12% vs 21.17% YoY-ago (company basis), −505 bps | Played out |
| "whether EBITDA stabilises after Rs.250 Cr (Q1) / Rs.269 Cr (Q4 FY26)" | Fell further to Rs.234.20 cr, −6.21% QoQ | Contradicted |
| "recognition/timing of the US$13 Mn Thermo Fisher compensation" | Not recognized — non-adjusting subsequent event (P&L note 8) — not booked in Q2 | Not observable |
| "H2 lapping of the Rs.73.13 Cr Pimpri land gain" | No exceptional in Q2; reported-vs-normalized gap now closed (Q2 PAT = normalized PAT) | Played out |
| "quantification of the INR impact vs price/mix for Q2" | MD cites INR depreciation + Middle East input-cost inflation; no quantum disclosed — unquantified | Not observable |
| "execution of the LMRA amendment (due within 30 calendar days of Oct 26, 2026)" | Press release (6 Nov 2026) confirms the Solventum distribution relationship extended to 31 March 2031 | Played out |
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| What management said | What happened | Verdict |
|---|---|---|
| "Registered revenue growth in Q2 FY26 of 14.7% on a YoY basis" (press release) | +14.69% computed | Confirmed |
| "All businesses segments… registered revenue growth on a YoY basis" | All four segments up YoY (S&I +11.79%, T&E +23.39%, HC +4.15%, Consumer +19.50%) | Confirmed |
| Segment growth: T&E 23.4%, Consumer 19.5%, S&I 11.8%, Healthcare 4.1% | 23.39 / 19.50 / 11.79 / 4.15 | Confirmed |
| PAT decline of 17.2% "primarily due to the impact of Indian Rupee depreciation and the input cost inflation due to the Middle East crisis" | PAT −17.17%; material-cost ratio +644 bps YoY to 62.12%; segment margins down in 3 of 4 segments; quantum of FX vs input cost not disclosed — Too Early to fully adjudicate the attribution | Consistent with numbers, unquantified |
| 6th consecutive quarter of double-digit YoY sales growth (watch item from prior-quarter notes) | +14.69% | Confirmed |
| "Remains optimistic" outlook despite volatility/protectionism/tariffs (prior commentary) | Underlying profit fell for the second straight quarter; margin at a multi-quarter low of 16.12% | Tension evident; Too Early |
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.