AETHER Q2 FY27 Results Analysis: PAT Jumps 26%, Cash Flow Strain Persists

Cofacto Research Published October 30, 2026 4 min read
Positive

AETHER's Q2 FY27 numbers came in strong, with revenue of Rs. 347.22 Cr (+23.96% YoY) and PAT growth of +26.02% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateOctober 30, 2026
Revenue (Q2)Rs. 347.22 Cr (+23.96% YoY)
PAT (Q2)Rs. 68.00 Cr (+26.02% YoY)
EBITDA margin31.81% (+135 bps YoY)
EPS (Q2)Rs. 5.12 (+25.80% YoY)

Quarter Snapshot

Q2 FY27 delivered 23.96% YoY revenue growth with EBITDA margin of 31.81% running ~181 bps above the top of management's 29-30% guided band, and PAT growth of 26.02% outpacing revenue. The offset is cash quality: H1 CFO was 0.25x PAT with FCF at negative Rs.209.80 crore, and the Rs.216.93 crore H1 debt drawdown has effectively consumed the full-year incremental-debt guidance at the halfway mark. Execution on margin and capex guidance remains on track, but leverage and working-capital absorption are the watch items for H2.

Q2 FY27 Expectations vs Results

DriverExpected before resultsWhat happenedVerdict
Revenue"continued company-led outperformance rather than a market-led quarter"+23.96% YoY, +6.33% QoQ (consol)Played out
EBITDA margin"margins likely flat-to-compressing vs Q1, with the 29–30% guided band the anchor"31.81%, up from 31.47%Contradicted
PAT marginconvergence toward 19–20% from 19.22%19.58%, in bandPlayed out
Crude-linked input-cost squeeze "reflecting from the September 2026 quarter onward" (pre-call note, web-sourced, dated)margin headwindFiling gives no input-price decomposition; combined consumption growth (+17.19% YoY) ran below revenue; margin expandedNot observable
Rupee-weakness tailwind on the ~37.5% export mix (pre-call note, web-sourced, dated)realization supportNo export split in filing; only a Rs.4.73 crore H1 unrealised FX gain in the CF reconciliationNot observable
Working-capital deterioration as the "stickiest guide"WC headwindInventories +33.8% vs Mar-26; CFO/PAT 0.25×Played out
Incremental-debt guide "already being consumed"consumption continues+Rs.216.93 crore in H1 vs Rs.200–250 crore full-year guidePlayed out
Site 5 first revenue quarter / semiconductor stream / Baker Hughes pathQ2-specific catalystsNot addressed in the filing — remains open for the callNot observable

Read our full results preview.

Management Guidance vs Delivery

What management saidWhereWhat happenedVerdict
EBITDA margin 29–30% (~30%) FY27Q4 FY26 & Q1 FY27 calls31.81% (Q1: 31.47%) — running above bandOn Track
PAT margin 19–20% FY27Q4 FY26 call19.58% (Q1: 19.22%) — in bandOn Track
Capex Rs.3,000–3,500 Mn FY27Q4 FY26 call / FY26 Annual ReportRs.243.08 crore cash capex in H1On Track
Additional debt Rs.200–250 crore by end FY27Q4 FY26 call+Rs.216.93 crore in H1 aloneOn Track, but at the upper bound with half the year left
Working capital ~160 days (attempting 150) by end FY27Q4 FY26 callCompany-basis figure not in filing; analyst proxy 242 vs 284 days (improving)Too Early
"30% margin is surely sustainable" (CFO)Q3 FY26 call, quoted in prior-quarter notes31.81% printed in Q2 with zero exceptional/FLOP income in the quarterConfirmed
Margins normalize in Q1 after Q4's Rs.70 Mn write-offQ4 FY26 call, quoted in prior-quarter notesQ1 31.47% → Q2 31.81%, no exceptionals in eitherConfirmed
LSM softness is reallocation, not demandQ1 FY27 call, quoted in prior-quarter notesFiling silent on vertical mix/volumes this quarterToo Early
Additional debt Rs.200–250 crore suffices to end-FY27Q4 FY26 callRs.216.93 crore already added in H1, with Site 5 Phase 2 under construction — trajectory implies overshootContradicted

Key Numbers, Quarter by Quarter

MetricLatest prior valueQ2 FY27
CEM+CRAMS mix60% (Q1 FY27)Not disclosed
Working-capital days (company basis)"marginally lower" than 179 (Q1 FY27)Not disclosed (proxy improves)
Site utilization (Strata 58%, Ascend 72%)Q1 FY27Not disclosed
New customers onboarded10 (Q1 FY27)Not disclosed

Key Investment Insights

Key Positives

  • Consolidated revenue grew 23.96% YoY to Rs.347.22 crore (+6.33% QoQ)
  • EBITDA margin expanded to 31.81% from 30.46% YoY, above the guided 29-30% FY27 band
  • PAT grew 26.02% YoY to Rs.68.00 crore (21.63% normalized), outpacing revenue growth
  • H1 revenue Rs.673.78 crore (+26.83%), EBITDA Rs.213.21 crore (+30.49%), PAT Rs.130.75 crore (+29.48%)
  • Effective tax rate fell to 23.18% from 27.35% YoY with deferred share down to 8.00% of tax charge
  • Working-capital proxy days improved ~41 days (284 to 242) with receivables flat
  • Credit rating upgraded to Crisil AA−/Stable / A1+ on Sep 24, 2026
  • No exceptional items booked in Q2 or H1 FY27

Risk Factors

  • H1 CFO of Rs.33.27 crore was 0.25x PAT and 0.16x EBITDA, with FCF at negative Rs.209.80 crore
  • Borrowings rose Rs.216.93 crore in H1, effectively consuming the full-year Rs.200-250 crore incremental-debt guidance with Site 5 Phase 2 still under construction
  • Finance cost rose 64.53% YoY and D&A 31.27% YoY, the lines management says cap PAT margins at 19-20%
  • Inventories rose 33.8% vs Mar-26 to Rs.719.18 crore, a Rs.181.71 crore cash drain in H1
  • Other income fell 41.55% YoY to Rs.5.08 crore
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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.

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