By Aditya Arora, Research Analyst, Mirae Asset Sharekhan.

 

Q2FY27 results were below expectations, with revenue growing 34.7% YoY to ₹4,904 crore, EBITDA increasing 25.4% to ₹1,009 crore, and PAT rising 31.2% to ₹509 crore; however, EBITDA margin contracted 330 bps YoY to 20.6%, missing estimates of 22.3%, primarily due to higher raw material costs. The Chemicals segment reported 25% YoY revenue growth, in line with estimates, but EBITDA declined 10% YoY and margins contracted 220 bps due to pricing pressure in specialty chemicals and oversupply from China, despite strong growth in refrigerant gases (Refgas). Packaging Films margins contracted 762 bps QoQ to 9.7% as inventory benefits from Q1FY27 reversed, while robust production and subdued customer inventory replenishment resulted in lower offtake and demand for aluminium foil remained healthy. Technical Textiles revenues and EBIT were below expectations, with EBIT margins declining 591 bps QoQ to 12.2% as gains recorded in Q1FY27 reversed. Separately, the company approved ₹600 crore of capex to establish a 12 KTPA battery-grade aluminium foil facility for lithium-ion and sodium-ion batteries, with Phase I expected to be commissioned by September 2028 and Phase II by September 2030.