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Epigral (EPIGRAL): Q2 FY27 results declared, my analysis (Jul-Sep 2026)

Epigral (EPIGRAL) No replies

Arun @arun #1

Standalone figures, ₹ crore. EBITDA excludes other income. YoY/QoQ %, margins and ratios are my calculations.

MetricQ2 FY27YoYQoQ
Revenue from ops746.0+27.0%+5.8%
EBITDA136.1+3.1%−24.1%
EBITDA margin18.2%22.5%25.4%
PBT86.9+24.3%−34.7%
PAT64.4+25.0%−35.0%
PAT margin8.6%8.8%14.1%
Other income / PBT6.7%2.5%3.1%

Margin and ratio rows show the year-ago and last-quarter values.

Quality of earnings

Revenue rose 27%, but EBITDA rose only 3%. So most of the extra sales did not turn into extra operating profit.

PBT still grew 24% YoY. Interest plus depreciation was about ₹9 cr lower than a year ago, and other income about ₹4 cr higher. Other income is small at under 7% of PBT. The tax rate was a normal ~26%. No exceptional items [1].

Base effect: Q2 FY26 PAT had itself fallen 36% YoY [16], so the +25% YoY is partly flattered by a soft base.

Half-year view: H1 PAT fell to ₹163.6 cr from ₹211.9 cr. That is because H1 FY26 carried a one-time deferred-tax gain [1]. H1 PBT actually rose 25% (₹220.1 cr vs ₹176.7 cr) [1].

QoQ, raw-material cost rose to ₹469 cr from ₹430 cr, and an inventory swing added ~₹41 cr of cost [1]. The company cites high raw-material costs [3].

Cash flow: H1 operating cash flow fell to ₹141 cr from ₹267 cr, as working capital absorbed cash [1].

Margins (Chart 3)

EBITDA margin over five quarters: 22.5% → 17.2% → 23.0% → 25.4% → 18.2% [2][5]. The Q3 FY26 dip came from a planned maintenance shutdown [13]. Q2 FY27 has no such reason given other than input costs.

The mix keeps shifting: Derivatives & Specialty reached 57% of revenue, the highest in five quarters, vs 50% a year ago [4].

Guidance: what changed

  • CPVC (+75k TPA) and ECH (+50k TPA): Guided for H1 FY27 in January [6] and for Q2 FY27 in July [7]. Now Q3 FY27 [2]. Slipped by a quarter.
  • 70% specialty share: First targeted "by FY27" [9], moved to "by FY28" in May 2025 [10]. Unchanged since.
  • Epoxy resin (125k TPA) and multi-purpose plant: Still H2 FY28 [2][7].
  • Capex: ~₹400 cr in FY27; ₹88 cr spent in H1 [2].
  • Long term: On the Q1 call, management targeted 15–20% revenue and profit CAGR over 3–5 years [8].
  • Q2 call: I found no coverage at writing.

Positives

  • Revenue +27% YoY; specialty share at 57% [1][4]
  • PAT +25% YoY [1]
  • Net debt/EBITDA 0.9x [2]

Concerns

  • EBITDA margin down ~430 bps YoY [2]
  • Expansion timeline slipped again [2][7]
  • Operating cash flow nearly halved in H1 [1]
  • Part of the YoY growth is base effect (my view)

Things to track in Q3 FY27

  1. Actual commissioning of the CPVC and ECH expansions
  2. EBITDA margin: does it return to the 22–25% band?
  3. Working capital and H2 cash flow
  4. Capex pace vs the ₹312 cr still planned for FY27

Not a buy/sell recommendation. Facts are sourced; opinions are labelled.

Sources [1] Multibagg – Q2 FY27 filing summary · [2] Multibagg – Q2 FY27 presentation, capex · [3] Multibagg – margin · [4] Multibagg – revenue mix · [5] ScanX – Q4 FY26 call · [6] Q3 FY26 presentation (BSE) · [7] Q1 FY27 presentation (NSE) · [8] Arthneeti – Q1 FY27 call · [9] BSE – Nov 2024 presentation · [10] BSE – May 2025 presentation · [11] Indian Chemical News – FY23 · [12] FundsIndia – FY24 · [13] Indian Chemical News – Q4 FY26 · [14] ScanX – FY25/FY26 PAT · [15] Sahi – FY31 target · [16] ScanX – Q2 FY26 summary

Charts:

(1) last 5 quarters revenue & PAT, Q3–Q4 FY26 PAT as rounded in the company release

(2) FY23–FY26 revenue & PAT, FY26 PAT includes a one-time ₹81 cr deferred-tax gain [5]; (3) EBITDA and PAT margin (own calc.).

Bar charts of Epigral standalone revenue and PAT over five quarters, Q2 FY26 to Q2 FY27. Revenue ₹587 cr, ₹597 cr, ₹736 cr, ₹705 cr, ₹746 cr. PAT ₹51.5 cr, ₹39.0 cr, ₹82.0 cr, ₹99.2 cr, ₹64.4 cr. Source: company results.
Bar charts of Epigral standalone revenue and PAT over five quarters, Q2 FY26 to Q2 FY27. Revenue ₹587 cr, ₹597 cr, ₹736 cr, ₹705 cr, ₹746 cr. PAT ₹51.5 cr, ₹39.0 cr, ₹82.0 cr, ₹99.2 cr, ₹64.4 cr. Source: company results.
Image from the analyst
Line charts of Epigral EBITDA margin and PAT margin over five quarters, Q2 FY26 to Q2 FY27. EBITDA margin 22.5%, 17.2%, 23.0%, 25.4%, 18.2%. PAT margin 8.8%, 6.5%, 11.1%, 14.1%, 8.6%. Source: company results and presentations; margins calculated from
Line charts of Epigral EBITDA margin and PAT margin over five quarters, Q2 FY26 to Q2 FY27. EBITDA margin 22.5%, 17.2%, 23.0%, 25.4%, 18.2%. PAT margin 8.8%, 6.5%, 11.1%, 14.1%, 8.6%. Source: company results and presentations; margins calculated from
Author's disclosure: Not invested

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