TI's Q2 FY27 numbers came in soft, with revenue of Rs. 1,035.30 Cr (+172.72% YoY) and PAT growth of -57.72% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,035.30 Cr (+172.72% YoY) |
| PAT (Q2) | Rs. 22.27 Cr (-57.72% YoY) |
| EBITDA margin | 14.29% (-157 bps YoY) |
| EPS (Q2) | Rs. 0.90 (-66.79% YoY) |
Q2 FY27 net revenue of Rs.1,035.30 Cr was flat sequentially and EBITDA margin of 14.29% missed management's guidance of being similar to Q1's 16.15%, as COGS jumped 1,195 bps as a share of net revenue. PAT fell 57.72% YoY, H1 operating cash flow was negative at Rs.(4.06) Cr, and net debt rose Rs.149.28 Cr, moving away from the ~Rs.1,700 Cr March-2027 target. The investment case now hinges on a management-guided Q3/Q4 margin recovery and a Rs.383.80 Cr H2 net-debt reduction, both of which look stretched after H1 execution.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue in-line to ahead, share/mix-led not market-led | "Q2's read hinges on whether IB sustained 2 mn+ monthly cases" | Net revenue Rs.1,035.30 Cr, +172.72% YoY but (1.03)% QoQ vs Rs.1,046.03 Cr — in-line; flat sequentially | Played out |
| Margins flat-to-compressing vs Q1's 14.5% subsidy-adjusted base | "margins likely flat-to-compressing QoQ" | 14.13% subsidy-adjusted (14.29% reported) — compressed | Played out |
| Glass inflation bleeding into early-Q2 COGS, soda-ash relief late | "pass-through lags mean Q1's glass inflation likely still bleeds into early Q2 COGS" | COGS 64.20% of net revenue vs 52.25% in Q1 (no filing attribution) — direction | Played out |
| Net debt path toward ~Rs.1,700 Cr; Telangana dues overhang | "Rs.3,900 Cr of unpaid Telangana dues… receivable days a live drag" | Net debt Rs.2,083.80 Cr, +Rs.149.28 Cr vs Mar-26; receivables +22.29% — drifted away from target | Partially |
| Exceptionals shrinking from Rs.30 Cr | "exceptional items shrinking" | Rs.10.95 Cr | Played out |
| Telangana price hike "not confirmed" | no notification found in the window | No price action visible in the filing | Not observable in the filing |
| FTA benefit guided from Q3 FY27 — no Q2 P&L help | "no Q2 P&L help" | Filing silent on FTA impact — consistent | Not observable in the filing |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Q2 FY27 EBITDA margin "similar" to Q1 FY27 (impacted by incremental A&SP reinvestment), with significant Q3/Q4 uptick | Q1 FY27 earnings call (July 2026) | 14.29% reported / 14.13% subsidy-adjusted vs Q1's 16.15% / 14.48% — below the Q1 print on both bases | Missed |
| Net debt ~Rs.1,700 Cr by March 2027 (from Rs.2,100 Cr at Jun-26, management's figure) | Q4 FY26 earnings call and FY26 annual report | Rs.2,083.80 Cr at Sep-26; +Rs.149.28 Cr vs Mar-26 — needs ~Rs.384 Cr H2 reduction after an H1 increase | Stretch |
| Exceptional costs to "reduce significantly over the remainder of FY27" | Q1 FY27 earnings call | Rs.10.95 Cr in Q2 vs Rs.30.12 Cr in Q1 | On Track |
| FY29 EBITDA margin 16–18% | FY26 annual report | Q2 at 14.29% | Too Early |
| Integration of IB "substantially completed", focus shifting to growth (CMD, Q1 FY27 close) | IB integration/transition exceptional costs fell 64% QoQ to Rs.10.95 Cr | Confirmed | |
| "Remain confident of improving upon the 15.5% baseline EBITDA margin achieved in Q4 FY26" (CMD, Q1 FY27) | Q2 margin 14.29% (14.13% adj) sits below that base; management's own plan puts the recovery in Q3/Q4 | Too Early | |
| "Steadily deleverage the balance sheet" (CMD) | Net debt +Rs.149.28 Cr in H1 vs Mar-26, away from the Rs.1,700 Cr Mar-27 target — for H1 | Contradicted | |
| Input-cost pressure "short-lived" (Q1 FY27 call) | COGS at 64.20% of net revenue vs 52.25% in Q1; filing offers no attribution — not contradicted in the filing | Too Early |
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.