KIOCL Ltd's Q2 FY27 numbers came in mixed. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 202.96 Cr (+25.04% YoY) |
| PAT (Q2) | Rs. 5.02 Cr |
| EBITDA margin | -3.16% (+1329 bps YoY) |
| EPS (Q2) | Rs. 0.08 |
KIOCL returned to quarterly profitability with PAT of Rs.5.02 cr (EPS Rs.0.08) after losses in Q1FY27 and Q2FY26, on revenue up 26.21% YoY led by conversion services (+77.33% QoQ). However, core EBITDA ex-treasury remains negative at Rs.(5.68) cr, with PAT carried by Rs.23.06 cr of other income, and power costs surged 57.56% QoQ. No company-issued guidance exists in the filing, so no beat can be scored; the NMDC agreement renewal, DR-grade clarity, and Devadari milestones remain open levers.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "in-line to ahead on volume" | conversion flow indicators pointing up | +13.85% QoQ, +26.21% YoY to Rs.179.90 cr — ahead | Played out |
| Operating margin "likely compressing" on power | IEX spot spike feeding the largest cost line | Power +57.56% QoQ, 53.37% of revenue vs 38.57% in Q1; yet EBITDA improved to Rs.(5.68) cr from Rs.(26.59) cr — pressure was real; the drawdown of low-cost inventory and cost cuts offset it | Partially |
| Treasury income as "the most plausible bridge back toward profit" | flat repo, firm yields on the cash pile | Other income Rs.23.06 cr; PAT +Rs.5.02 cr | Played out |
| Conversion run-rate vs 3–3.3 MT target | ~7.5–8.25 lakh t/quarter implied | Not addressed in the filing — remains open for the call | Not observable |
| DR-grade (67% Fe) clarity "by Q2" | open question from pre-call note | Not addressed in the filing — remains open | Not observable |
| NMDC agreement renewal (expiry 28 November 2026) | "single biggest swing item" | Not addressed in the filing — remains open for the call | Not observable |
| Devadari milestones (working permission, approach road) | Stage-I approval July 2026; permission pending | Not addressed in the filing — remains open | Not observable |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| "Returning to profitability marks the foundation, not the finish line" (Chairman, FY26 reporting) | FY26 annual report / MD&A | Q2FY27 PAT +Rs.5.02 cr after Q1's Rs.(15.48) cr loss; Q2 revenue +26.21% YoY — though ex-treasury EBITDA is still Rs.(5.68) cr | Confirmed for the quarter |
| Cost rationalization as the turnaround underpinning | FY26 annual report / MD&A | Employee costs −5.22% YoY, other expenses −23.30% YoY, D&A −17.99% YoY | Confirmed |
| Treasury operations as a profit pillar ("prudent treasury operations") | FY26 annual report / MD&A | Other income Rs.23.06 cr (+16.58% YoY); treasury income Rs.14.21 cr — and it is what carries the PAT | Confirmed |
| CARE outlook rests on sustained utilisation via the NMDC conversion arrangement | CARE rating action, 13 October 2026 | Q2 conversion-service revenue +77.33% QoQ — consistent; but no volume KPI disclosed — revenue proxy only | Partially confirmed |
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.