Sedemac Mechatronics Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 400.64 Cr (+39.85% YoY) and PAT growth of +29.99% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 400.64 Cr (+39.85% YoY) |
| PAT (Q2) | Rs. 39.18 Cr (+29.99% YoY) |
| EBITDA margin | 19.01% (-273 bps YoY) |
| EPS (Q2) | Rs. 8.87 (+25.64% YoY) |
SEDEMAC delivered record revenue of Rs.400.64 Cr (+39.85% YoY) and record ECU volumes (+37.5% YoY), but EBITDA margin of 19.01% missed management's stated floor of holding or improving vs Q1 FY27's 19.38% amid raw-material inflation. Growth is being debt- and supplier-financed: H1 operating cash flow was negative Rs.20.38 Cr, FCF was −Rs.191.47 Cr, and borrowings jumped to Rs.245.64 Cr, while the Industrial segment fell 26.19% YoY on absent US genset demand.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "the volume line should translate; the open question is the volume-to-revenue bridge" — "likely ahead" | Revenue +39.85% YoY vs volumes +37.5% | Played out |
| Margin vs 19.4% floor | "the external evidence leans toward the pressure side of that guidance" | EBITDA margin 19.01% vs Q1 19.38% — slipped below the floor | Played out |
| Industrial segment | "read it as steady rather than boosted" | Industrial revenue −26.19% YoY (+19.35% QoQ) | Contradicted |
| H1 tax normalization | "H1 PAT comparisons should account for this" (Rs.2.98 Cr reversal) | H1 normalized PAT Rs.69.51 Cr, +47.24% YoY vs reported +53.55% | Played out |
| MF3/MF4 execution; monsoon stance | "confirmation of first ECU shipments from MF3"; monsoon risk flip | Not addressed in the filing — remains open for the call | Not observable |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| "We expect EBITDA % to hold or improve for rest of FY27 vs Q1FY27" (19.4% base) | Q4 FY26 earnings call / Q1 FY27 management commentary | EBITDA margin (company basis) 19.01% vs 19.38% Q1 — −37 bps vs the floor | Missed |
| MF3 ECU shipments to start from Q2 FY27; limited commercial production began 25 Sep 2026 | Q4 FY26 outlook; company press release of 25 Sep 2026 | Filing does not confirm shipments; production start was 5 days before quarter-end | Too Early |
| MF4 electric-machine shipments from Q3 FY27 | Q4 FY26 outlook | Not addressed in the filing | Too Early |
| ISG 2W launch cadence: "One launch done, second imminent" (Jul 2026), third anticipated Q4 FY27 | Q4 FY26 outlook / Jul 2026 update | Not addressed in the filing | Too Early |
| ACU first SOP and Mobility MCU SOP in H2 FY27 | Q4 FY26 outlook | Not addressed in the filing | Too Early |
| Record demand momentum (record ECU volumes) | Company press release of 3 Oct 2026 (14,52,867 ECUs, +37.5% YoY) | Revenue +39.85% YoY, matching or exceeding volume growth | Confirmed |
| Metric | FY25 | FY26 | Q2 FY26 | Q2 FY27 |
|---|---|---|---|---|
| Control-intensive ECUs sold | 2,438,504 | 3,901,075 | 1,056,371 | 1,452,867 |
| YoY % | — | +59.98 | — | +37.5 |
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.