ELANTAS Q2 FY27 Results Analysis: PAT Jumps 26%, Margin Expands 116 bps

ELANTAS's Q2 FY27 numbers came in strong, with revenue of Rs. 265.31 Cr (+22.52% YoY) and PAT growth of +25.62% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 22.52% YoY and PAT 25.62% YoY, with operating EBITDA margin up 116 bps despite a 207 bps YoY rise in the materials ratio, and the E&E Resins segment grew 49.13% to reach 24.65% of segment revenue. The GPCB permanent revocation of the Ankleshwar closure directive removes the key regulatory overhang at one of only two plants. No quantitative guidance exists to score, but the print is operating-led and the company outgrew a negative industry proxy.

Key Investment Insights

Key Positives

• Revenue grew 22.52% YoY to Rs.265.31 Cr; 9M revenue up 21.86% YoY to Rs.770.87 Cr
• Net profit grew 25.62% YoY to Rs.45.55 Cr; 9M PAT up 36.05% YoY to Rs.147.49 Cr
• Operating EBITDA margin expanded 116 bps YoY to 22.95%
• Engineering & Electronic Resins revenue grew 49.13% YoY, rising to 24.65% of segment revenue from 20.26%
• Electrical Insulations segment profit grew 39.72% YoY with margin up 369 bps to 21.65%
• GPCB permanent revocation of the Ankleshwar closure directive received 27 Oct 2026
• Company grew 22.52% YoY against a negative chemicals IIP proxy (−2.7%/−0.5% in July/August)
• Effective tax rate stable at 25.30% with negligible deferred tax; no one-time items in the quarter

Risk Factors

• Materials ratio rose 207 bps YoY to 58.30% of revenue as cost of materials grew 27.03% vs revenue growth of 22.52%
• Engineering & Electronic Resins margin fell to 22.88% from 28.50% a year ago despite 49.13% revenue growth
• Revenue declined 6.38% QoQ and operating EBITDA margin compressed ~588 bps QoQ from an exceptional Q1
• Other income fell to Rs.6.48 Cr from Rs.19.27 Cr in Q1, contributing to the 35.73% QoQ PAT decline