Andhra Petrochemicals Q2 FY27: PAT up 13% YoY to ₹2.42 Cr despite 30% revenue fall

Andhra Petrochemicals' standalone Q2 FY27 revenue fell 29.8% YoY to ₹117.61 Cr (from ₹167.64 Cr), yet PAT rose 12.9% YoY to ₹2.42 Cr (from ₹2.14 Cr), with EPS at ₹0.28 versus ₹0.25 a year ago. Both margins expanded on a YoY basis — net margin (PAT/total income) at 1.96% versus 1.23%, and the EBITDA-level operating margin at 3.26% versus 0.55%. Sequentially the swing is sharper: Q1 FY27 revenue had collapsed to just ₹14.09 Cr with a standalone net loss of ₹3.25 Cr (NPM -15.71%, OPM -36.97%), so Q2's rebound marks a clean quarter-on-quarter turnaround back into profit, though the scale of Q1's near-wipeout makes QoQ comparisons more a recovery from an air-pocket than an operating trend. The YoY margin expansion is not driven by cheaper raw materials — cost of materials consumed actually rose to 91.9% of revenue from 82.8% a year ago — but by a large swing in the inventory line: changes in inventories of finished goods/WIP contributed a ₹14.77 Cr cost credit this quarter versus a ₹0.21 Cr charge a year ago, which more than offset the higher material-cost ratio and kept total expenses at 101.8% of revenue versus 102.9% a year ago. This is an inventory-build effect rather than a structural cost improvement, and bears watching for reversal. No analyst coverage exists for this stock (zero brokerages track it per screener.in/Tipranks), so vsStreet is unknown, and the company has issued no formal forward guidance — there is nothing on record to grade this print against. Management's own cover letter to BSE carries no commentary on the result itself; its only substantive content is a Nomination & Remuneration Committee reshuffle (M Gopalakrishna appointed Chairman of that committee on 4.11.2026, replacing G S V Prasad who had resigned that specific committee role on 24.9.2026), a governance item unconnected to the quarter's numbers. The company's long-running Visakhapatnam Port Authority land-lease dispute remains unresolved — APL continues to account for the lease provisionally under Ind AS 116 pending deed execution, following the Andhra Pradesh High Court division bench's 3 Nov 2025 judgment on VPA's appeal. For H1 FY27, the company posted a standalone net loss of ₹0.83 Cr on revenue of ₹131.70 Cr, a narrower loss than H1 FY26's ₹6.27 Cr, almost entirely a function of Q1's weak base rather than a clear H1 operating improvement.