ABREL's Q2 FY27 numbers came in strong. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 26, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 825.03 Cr (+743.20% YoY) |
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| PAT (Q2) | Rs. 918.70 Cr |
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| EBITDA margin | 19.14% (+9453 bps YoY) |
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| EPS (Q2) | Rs. 77.51 |
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| Market cap | Rs. 11,761.00 Cr |
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| CMP | Rs. 1,052.95 |
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Quarter Snapshot
The ITC divestment (Rs.3,476 crore, Rs.868.12 crore gain) rebuilt the balance sheet — net debt down Rs.2,526 crore to Rs.765.57 crore and D/E at 0.79x — while continuing operations turned profitable for the first time in the presented series with Rs.157.94 crore EBITDA at 19.14% margin. Normalized PAT of Rs.125.65 crore is the best quarter on record, though operating cash flow remains negative (H1 CFO Rs.(633.69) crore) and NCI absorbs 42% of continuing PAT. The Rs.15,000 crore three-year pre-sales target cannot be scored this quarter as bookings were not disclosed.
Key Investment Insights
Key Positives
- Continuing operations swung to PBT of Rs.173.79 crore and PAT of Rs.143.31 crore from losses of Rs.(83.00) crore in Q1 and Rs.(91.83) crore YoY
- EBITDA of Rs.157.94 crore at 19.14% margin vs a Rs.73.76 crore loss (-75.39%) a year ago
- Real Estate segment profit of Rs.151.80 crore at 18.74% margin vs (87.4)% a year ago
- Pulp & Paper sold to ITC for Rs.3,476 crore with Rs.868.12 crore gain; reported PAT Rs.918.70 crore, EPS Rs.77.51
- Net debt cut by Rs.2,526 crore in six months to Rs.765.57 crore; debt-equity fell to 0.79x from 1.53x
- Consolidated finance cost nil in the quarter vs Rs.25.83 crore in Q1
- Normalized PAT of Rs.125.65 crore is the best quarter in the presented series
- Cash and current investments of Rs.2,877.13 crore with inventory book of Rs.11,351.73 crore ahead of FY27 launches
Risk Factors
- H1 consolidated CFO of Rs.(633.69) crore vs PAT of Rs.884.11 crore (CFO/PAT -0.72x); operating cash generation still negative
- Non-controlling interests absorbed 42.0% of consolidated continuing PAT (Rs.60.20 crore of Rs.143.31 crore)
- Completed-contract revenue lumpiness: Rs.809.93 crore this quarter vs Rs.171.99 crore in Q1 and Rs.83.14 crore a year ago
- Net debt of Rs.765.57 crore missed management's 'nearly zero' claim on the conventional definition
- Discontinued Pulp & Paper recorded a pre-exceptional loss of Rs.(19.42) crore in its final quarter vs Rs.86.35 crore profit a year ago