Rubicon Research Q2 FY27 Results Analysis: PAT Surges 67.92%, Margin Tops Guidance

Cofacto Research Published November 05, 2026 4 min read

Positive

Rubicon Research Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 576.38 Cr (+39.89% YoY) and PAT growth of +67.92% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 05, 2026
Revenue (Q2)	Rs. 576.38 Cr (+39.89% YoY)
PAT (Q2)	Rs. 90.43 Cr (+67.92% YoY)
EBITDA margin	25.00% (+211 bps YoY)
EPS (Q2)	Rs. 5.41 (+55.00% YoY)

Quarter Snapshot

Q2 FY27 delivered 39.89% YoY revenue growth and 67.92% PAT growth with Operating EBITDA margin at 25.00%, running 161 bps above management's ≥23% FY27 guidance floor despite input-cost escalation. Growth is partly acquisition-led (Arinna contributed ~33% of PAT; standalone revenue fell 10.32% QoQ), and cash conversion remains weak at 0.56x CFO/PAT. Key upcoming catalysts are Pithampur commercialization in Q1 CY27 and the New Jersey facility in CY2027.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue	"likely in-line to ahead on the YoY base"	+39.89% YoY, +7.87% QoQ	Played out
USD revenue rebound after Q1's tactical dip	rebound expected	Quarterly USD revenue not disclosed in filing	Not observable
EBITDA margin vs ≥23% guide; cost kicks-in risk	hold near 24.2% or moderate	25.00%, above Q1's 24.16% — better than feared	Played out
Gross margin 67–68% band sustainability	test vs freight spike	68.63% P&L-basis	Played out
Input/freight escalation	"compressing pressures at the edges"	Materials +13.94% QoQ vs revenue +7.87%; margin still expanded — pressure visible, absorbed	Partially
GST-refund normalization in Q2 CFO	"the quarter's clearest testable promise"	Q2-derived CFO Rs.70.36 Cr vs Rs.28.5 Cr — directional	Played out
Cash conversion / NWC	key watch item	H1 CFO/PAT 0.56×; NWC days not derivable	Partially
Finance costs stable	stable	Rs.11.41 Cr flat YoY	Played out

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Operating EBITDA margin ≥23% for FY27 (revised up from 22–23%)	Q1 FY27 earnings call (Aug 14, 2026)	25.00% in Q2; 24.61% H1	On Track
R&D expense 10–11% of operating revenue	management guidance, recent calls	11.22% in Q2; 11.23% H1 — upper edge	On Track
R&D spend Rs.500 Cr over nine quarters (FY26–Q1 FY28)	earnings calls ("remains high confidence; we are on track")	Rs.198.87 Cr (FY26) + Rs.124.73 Cr (H1 FY27) = Rs.323.60 Cr (65% done, 7 of 9 quarters left)	On Track
Gross margin 67–68% once Pithampur ramps	management commentary on prior calls	68.63% P&L-basis (company's product-sales basis not published this filing) — proxy basis	On Track
Finance costs stable, not decreasing	Q4 FY26 earnings call	Rs.11.41 Cr vs Rs.11.42 Cr YoY	Met
Pithampur commercialization Q1 CY27; New Jersey CY2027	management commentary / Oct 30, 2026 inspection disclosure	Not addressed in this filing	Too Early

Key Investment Insights

Key Positives

Consolidated revenue grew 39.89% YoY to Rs.576.38 Cr; H1 FY27 revenue Rs.1,110.72 Cr, up 45.28% YoY
PAT grew 67.92% YoY to Rs.90.43 Cr; diluted EPS Rs.5.41 vs Rs.3.47 in Q2 FY26
Operating EBITDA margin reached 25.00% in Q2 (22.89% in Q2 FY26, 24.16% in Q1 FY27); H1 at 24.61% vs the ≥23% FY27 guidance floor
Gross margin held at 68.63% within the 67–68% target band despite input/freight cost escalation
Q2-derived operating cash flow of Rs.70.36 Cr vs Rs.28.5 Cr in Q1 as GST refunds normalized
R&D spend at 11.22% of revenue, on track toward the Rs.500 Cr nine-quarter target (Rs.323.60 Cr, 65% done)
Effective tax rate fell to 22.66% from 24.90% YoY, not driven by deferred tax

Risk Factors

Standalone revenue fell 10.32% QoQ and standalone PAT fell 26.48% QoQ, indicating consolidated growth is substantially acquisition-led
Cost of materials consumed rose 13.94% QoQ against 7.87% QoQ revenue growth on input/freight escalation
H1 CFO/PAT at 0.56x and CFO/EBITDA at 0.35x; receivables built Rs.80.96 Cr and inventories Rs.57.88 Cr in H1
Net debt rose to Rs.189.36 Cr from Rs.73.72 Cr at Mar-26 to fund the Arinna acquisition
Four subsidiaries reviewed by other auditors reported Rs.25.15 Cr H1 net loss on Rs.70.73 Cr H1 revenue