Indokem Q2 FY27: PAT growth stalls to 5% YoY despite 17% revenue growth

Indokem's consolidated revenue for Q2 FY27 (quarter ended September 30, 2026) rose 17.2% YoY to ₹47.25 Cr from ₹40.30 Cr, but consolidated PAT grew just 4.9% YoY to ₹0.43 Cr from ₹0.41 Cr — profit growth stalling well behind the topline. Sequentially the slowdown is sharper: PAT fell 59.8% QoQ from ₹1.07 Cr in Q1 FY27 even as revenue edged up only 1.3% QoQ, and net margin nearly halved to 0.91% from 2.29% in Q1. Operating margin (EBITDA/revenue) was roughly flat YoY at 4.42% versus 4.34% a year ago but slipped from 5.40% in Q1, so the squeeze shows up below the operating line. That squeeze traces to finance cost, which rose 33% YoY (₹78 lakh to ₹104 lakh) and 27% QoQ on higher borrowings (consolidated non-current borrowings up to ₹2,743 lakh from ₹2,472 lakh at FY26-end) — the single biggest drag on PAT this quarter. The consolidated print also trails Indokem's own standalone (entity-level) result by a wide margin: standalone PAT rose 13.6% YoY to ₹0.75 Cr on revenue up 21.4% YoY to ₹42.39 Cr, meaningfully stronger than the group number. The gap owes to two consolidated subsidiaries posting combined quarterly net losses of roughly ₹29 lakh (one loss-making unit alone reported a ₹25.27 lakh loss on ₹563.79 lakh of quarterly revenue, per the auditors' review report) — readers comparing the two bases should note standalone is the stronger print here, not consolidated. Management has issued no formal guidance on record, and a web search turned up no analyst/street estimates for this result, consistent with this being a thinly-covered micro-cap; vsGuidance and vsStreet are both unknown. The quarter's other corporate developments — AGM director re-appointments (Sep 24, 2026) and the routine trading-window closure ahead of results — are governance housekeeping unconnected to the P&L.