Schneider Electric Infrastructure Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 779.12 Cr (+19.84% YoY) and PAT growth of -43.33% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 779.12 Cr (+19.84% YoY) |
| PAT (Q2) | Rs. 29.65 Cr (-43.33% YoY) |
| EBITDA margin | 8.35% (-522 bps YoY) |
| EPS (Q2) | Rs. 1.24 (-43.38% YoY) |
Revenue accelerated to +19.84% YoY (Rs.779.12 Cr) with EBITDA margin recovering 206 bps QoQ to 8.35%, but PAT fell 43.33% YoY as the material-cost ratio worsened 433 bps YoY on commodity inflation and legacy fixed-price orders. Cash conversion was the weakest element — H1 CFO was −Rs.29.15 Cr with a Rs.115.40 Cr inventory build pushing net debt up Rs.122.3 Cr. The Rs.211 Cr KMVC capacity expansion and sequential margin recovery are the forward markers, but no numerical FY27 guidance exists to benchmark against.
| Driver | What happened | Verdict |
|---|---|---|
| Revenue in-line-to-ahead on flow; execution the gating factor | Revenue +19.84% YoY, +19.61% QoQ (lock: revenue_yoy_q2_pct) | Played out |
| Q2 order intake vs Rs.838 Cr base; backlog vs Rs.2,169 Cr | Not disclosed in the filing | Not observable |
| Gross margin flat-to-compressing YoY; pass-through lag persists | Material ratio 65.35% vs 61.02% YoY (+433 bps) | Played out |
| Margins compressing again — commodity basket worsened in window | EBITDA Rs.65.09 Cr, −26.24% YoY; margin 8.35% vs 13.57% | Played out |
| Q2 revenue beats Q1 per seasonality claim | Rs.779.12 Cr vs Rs.651.36 Cr (+19.61% QoQ) | Played out |
| Working-capital deterioration / weak cash conversion | CFO −Rs.29.15 Cr; FCF −Rs.93.97 Cr; inventory days 105 vs 84 | Played out |
| USD import-content drag keeps other expenses elevated | Other expenses +22.44% YoY; filing attributes nothing to FX — direction only | Partially |
| DGTR CRGO probe / BIS Scheme X — no confirmed cost shock | No charge visible in the P&L; filing silent | Not observable |
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| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Execution pickup to double digits ("execution will pick up and move into double digits soon") | Q2 FY26 earnings call | Q2FY27 revenue +19.84% YoY, +19.61% QoQ; H1 +12.48% | Met |
| Q2 seasonality ("historically we always do better than Q1") | Q1 FY27 earnings call | Revenue Rs.779.12 Cr vs Q1 Rs.651.36 Cr; EBITDA Rs.65.09 Cr vs Rs.40.96 Cr | Met |
| Full-year operating leverage ("you will find this leverage even in the overall results") | Q2 FY26 earnings call | FY26 EBITDA margin closed at 13.45% vs 15.4% in FY25 — promise missed; H1FY27 margin 7.41% keeps the question open for FY27 — FY26 outcome | Missed |
| KMVC Rs.211 Cr capex by end FY2028-29 | Board approval announced Oct 29, 2026 | CWIP +Rs.61.14 Cr in H1; borrowings +Rs.11.93 Cr — spend begun, debt-supported | On Track |
| No dividend for FY26 | FY26 results communication | No dividend paid in H1FY27 | Met |
| "Margins should even out over the year" (commodity lag, operating leverage, FX, Kolkata depreciation) | Q1 FY27 earnings call | Margin recovered 206 bps QoQ but is still −522 bps YoY; material ratio worsened further QoQ (+74 bps) — direction right sequentially | Too Early |
| "We have not delayed the price action… initiated the price hike right when we started witnessing it" | Q1 FY27 earnings call | Material ratio still +433 bps YoY; filing gives no price/mix attribution | Too Early |
| Confident in "healthy pipeline… to deliver a good performance in the remaining three quarters" | Q1 FY27 earnings call | Q2 revenue/EBITDA/PAT all up sharply QoQ; order intake not disclosed in this filing — delivery half visible, pipeline not | Partially |
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Order intake (Rs. Cr) | 838 | 909 | 772 | 915 (highest ever) | not disclosed in filing |
| Backlog (Rs. Cr) | 1,805 | 1,707 | 1,911 | 2,169 | not disclosed in filing |
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.