Forbes Precision: PAT dips 5% YoY as raw-material costs offset 14% revenue growth

Forbes Precision Tools and Machine Parts reported standalone revenue of ₹72.22 Cr for Q2 FY27 (quarter ended Sep 30, 2026), up 14.1% YoY from ₹63.27 Cr and up 6.9% QoQ from ₹67.55 Cr. Standalone PAT, however, fell to ₹7.92 Cr — down 4.6% YoY from ₹8.30 Cr and down 12.3% QoQ from Q1's ₹9.03 Cr — with basic EPS at ₹1.54 against ₹1.61 a year ago and ₹1.75 last quarter. Neither this quarter nor the year-ago quarter carried any exceptional items, so the YoY profit decline is on a like-for-like basis, not a one-off distortion. The squeeze sits on the material cost line: cost of materials consumed, net of the inventory change, worked out to roughly 40% of revenue this quarter versus approximately 33% a year ago and 36% last quarter, pushing net margin down to about 11.0% from roughly 13.0% (YoY) and 13.2% (QoQ). EBITDA margin (profit before depreciation, finance costs and tax, over revenue) held up better, easing only to about 22.1% from 22.9-23.0% in the comparison quarters — pointing to the compression concentrating in raw-material cost rather than overheads or employee costs, which were broadly flat to lower both YoY and QoQ. Zoomed out to the half year, the picture is still strong: H1 FY27 PAT of ₹16.95 Cr is up 39.9% YoY on H1 revenue of ₹139.77 Cr (+20.9% YoY), which means Q1 carried the half and Q2 marks a sequential deceleration rather than a reversal of the year's trend. Alongside the results, the board on October 28, 2026 approved a ₹60 Cr capex to expand Steel Taps manufacturing capacity by 10 lakh units per annum (against existing capacity of 36 lakh units running at 80-92% utilisation), to be funded through internal accruals and debt over 1-1.5 years — a capacity call that doesn't bear on this quarter's numbers but signals the company is investing through the current cost pressure rather than pulling back. The company gives no formal guidance on record, and no management press release accompanied this filing to cross-check against; a web search for analyst/consensus estimates for this quarter turned up no brokerage coverage, consistent with this being a thinly covered small-cap, so both vs-guidance and vs-street read as unknown rather than a miss.