SUNDRMFAST's Q2 FY27 numbers came in soft, with revenue of Rs. 1,984.50 Cr (+30.47% YoY) and PAT growth of +13.03% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,984.50 Cr (+30.47% YoY) |
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| PAT (Q2) | Rs. 172.63 Cr (+13.03% YoY) |
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| EBITDA margin | 15.51% (-244 bps YoY) |
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| EPS (Q2) | Rs. 8.20 (+14.20% YoY) |
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| Market cap | Rs. 22,094.96 Cr |
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| CMP | Rs. 1,051.50 |
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Quarter Snapshot
Revenue grew 30.5% YoY to Rs.1,984.50 Cr with exports up 57.1%, but EBITDA margin compressed 244 bps YoY to 15.51% as material costs outgrew revenue, and management's guided Q2 margin expansion from indirect-material savings did not materialize. H1 margin of 15.74% sits ~226 bps below the 18% FY27 target, making the goal difficult without sharp H2 recovery. Cash conversion deteriorated to 0.48x CFO/PAT with negative FCF of −Rs.150.03 Cr and borrowings up Rs.236 Cr, making growth balance-sheet funded.
Key Investment Insights
Key Positives
- Consolidated revenue grew 30.47% YoY to Rs.1,984.50 Cr; H1 revenue Rs.3,830.57 Cr (+25.4% YoY)
- Standalone exports grew 57.1% YoY to Rs.530.95 Cr, now 30.2% of standalone revenue, tracking ahead of the +15-20% FY27 export guidance
- Consolidated PAT grew 13.03% YoY to Rs.172.63 Cr; standalone PAT Rs.159.98 Cr (+14.1%)
- Capex of Rs.281.01 Cr incurred in H1, 70.3% of the Rs.400 Cr FY27 guidance, on track
- Double-digit revenue growth guidance (2-3pp above industry) is on track at +30.5% YoY
- Subsidiaries contributed +Rs.12.20 Cr to consolidated PAT-to-owners (7.1%), up from +Rs.10.60 Cr a year ago
- Interim dividend of Rs.4.05/share declared (Rs.85.09 Cr, 24.98% of H1 consolidated PAT-to-owners)
Risk Factors
- EBITDA margin fell 244 bps YoY to 15.51% consolidated (15.76% standalone), contradicting management's Q1 guidance that margin would expand in Q2
- H1 consolidated margin of 15.74% sits ~226 bps below the 18% FY27 EBITDA-margin target; H2 would need to exceed every quarter printed in the last five quarters
- Cost of materials grew 39.5% YoY vs revenue +30.5%; employee costs +20.1% and other expenses +32.5% also outgrew revenue
- CFO/PAT fell to 0.48x from 1.32x a year ago; H1 FCF was −Rs.150.03 Cr with a Rs.355.01 Cr working-capital drag
- Total borrowings rose Rs.236.25 Cr since March to Rs.834.67 Cr; net debt/annualized EBITDA ~0.63x and rising
- Inventory build of Rs.70.17 Cr in the quarter vs Rs.38.83 Cr a year ago, an additional ~Rs.31.3 Cr YoY P&L drag