SPLPETRO Q2 FY27 Results Analysis: PAT Doubles YoY, EBITDA Margin Normalizes

SPLPETRO's Q2 FY27 numbers came in strong, with revenue of Rs. 1,983.51 Cr (+77.47% YoY) and PAT growth of +100.41% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 revenue grew 77.5% YoY to Rs.1,983.51 Cr and PAT doubled YoY to Rs.97.15 Cr, though operating EBITDA margin normalized from Q1's aberration-level 19.39% to 7.66%, in line with management's prior warning. H1 FY27 EBITDA of Rs.513.20 Cr already stands at 91% of FY26's full-year figure, putting the company on track to exceed its 'better than last year' target, backed by debt-free balance sheet, 124% CFO/PAT conversion, and a newly approved Rs.325 Crore capacity expansion to March 2029.

Key Investment Insights

Key Positives

• Revenue grew 77.5% YoY to Rs.1,98,350.60 Lakh and 15.7% QoQ
• PAT grew 100.4% YoY to Rs.9,714.96 Lakh; EPS grew 99.2% YoY to Rs.5.12
• Operating EBITDA grew 93.0% YoY to Rs.15,193.78 Lakh with margin of 7.66% vs 7.04% in Q2 FY26
• H1 FY27 CFO of Rs.41,631.60 Lakh was 124.4% of PAT, a swing of Rs.46,031.09 Lakh from negative CFO in H1 FY26
• H1 FY27 free cash flow of Rs.33,893.87 Lakh after capex of Rs.7,737.73 Lakh
• Company remains debt-free with zero borrowings; CRISIL rating AA-/Stable, A1+
• Board approved Rs.325 Crore / 80,000 TPA polystyrene capacity expansion to 3,80,000 TPA by March 2029, funded via internal accruals
• Interim dividend of Rs.2.50 per share (125%) declared; H1 FY27 EBITDA of Rs.513.20 Cr already at 91% of FY26 full-year Rs.564.75 Cr

Risk Factors

• Operating EBITDA margin compressed 1,173 bps QoQ from 19.39% to 7.66% as the Q1 aberration normalized
• Operating EBITDA declined 54.3% QoQ to Rs.15,193.78 Lakh
• Purchase of stock-in-trade surged 92.9% YoY, faster than revenue growth of 77.5%
• Other income of Rs.1,139.01 Lakh represented 8.7% of PBT in Q2 FY27
• Current ratio declined from 2.01x (FY26) to 1.83x with trade payables up 46.5% YoY to Rs.1,16,243.53 Lakh