Cosmo First Q2 FY27: consolidated PAT ₹99 Cr, +58% adjusted YoY; OPM slips to 10.3%

Cosmo First's consolidated (primary) Q2 FY27 print shows revenue of ₹1,387.86 Cr, up 51.0% YoY (18.3% QoQ) from ₹919.03 Cr, and net profit of ₹98.58 Cr, up 111.2% YoY from ₹46.69 Cr. The reported PAT jump is materially flattered by two items: a ₹24.81 Cr one-off gain at the US subsidiary from a customs-duty refund on prior-year import tariffs (Note 5), and a swing to a net tax credit of ₹0.39 Cr (from ₹10.62 Cr tax a year ago) after the company adopted the concessional tax regime under the new Income Tax Act, 2025. Stripping just the customs refund, adjusted PAT is ~₹73.77 Cr, still up a strong 58.0% YoY and ahead of revenue growth — but the headline +111% is not a clean read of underlying profitability. Standalone PAT of ₹58.62 Cr against ₹98.58 Cr consolidated makes the same point: the gap is almost entirely the US one-off sitting at the subsidiary level. Operating margin actually compressed this quarter: OPM (EBITDA/revenue) fell to ~10.3% from 11.2% a year ago and 11.6% last quarter, as cost of materials consumed rose to 69.5% of revenue from 67.1% YoY — raw-material cost pressure that also shows up at the segment level, where Packaging Films (71% of revenue, +49.3% YoY) saw its segment margin slip to 11.6% from 12.9% YoY even as segment profit grew 33.9%. The headline net-margin expansion (NPM ~7.1% vs 4.9% YoY) is therefore largely a tax-and-one-off artefact sitting on top of a core business whose unit economics got slightly worse. Against management's FY27 guidance of ~20% topline growth with "commensurate" PAT growth, this quarter's 51% revenue growth and 58% adjusted PAT growth run well ahead of pace — a continuation of the Q1 FY27 beat (+46% revenue, +25% PAT). The four new businesses (Specialty Chemicals, Plastech, Consumer, Petcare) grew a combined 78.9% YoY to ₹156 Cr, ahead of the ~60% target management set for them; Specialty Chemicals segment profit grew 59.5% YoY, while Cosmo Consumer and Petcare losses widened to ₹5.35 Cr and ₹14.89 Cr respectively as Zigly expanded via the Prolife Speciality Vet Clinic acquisition that closed September 29, 2026. The company also incorporated a 50:50 flexible-packaging JV with Filmax Corporation (Korea) during the half. No consensus estimate for this specific quarter turned up via search, so vs-Street cannot be assessed; no separate management press release was available to cross-check framing.