KP Green Eng H1 FY27: consol PAT sinks 41% YoY to ₹34 Cr despite 28% revenue growth

KP Green Engineering's consolidated H1 FY27 (Apr-Sep 2026) revenue rose 27.6% YoY to ₹678.8 Cr from ₹532.1 Cr in H1 FY26, while consolidated PAT attributable to parent fell 41% YoY to ₹34.4 Cr from ₹58.3 Cr — a quarter-pair where topline growth and bottom-line contraction diverge sharply, consistent with the company's own board-meeting disclosure ("consol PAT sinks 41% on D&A, interest surge"). No brokerage estimates for this half could be found — the board approved and released results the same day as this search — so the print cannot be benchmarked against a street consensus; vsStreet is marked unknown rather than guessed. The miss sits below the EBITDA line. EBITDA grew 17% YoY to ₹119 Cr (H1 FY26: ₹102 Cr), but EBITDA margin eased to ~17.6% from ~19.2%, and net margin compressed far more sharply, to ~5.1% from ~10.9%. Depreciation quadrupled to ₹35.7 Cr (from ₹7.8 Cr) and finance costs more than doubled to ₹34.0 Cr (from ₹15.7 Cr), tracking the capex/lease build-out (non-current lease liabilities up to ₹149.2 Cr from ₹87.8 Cr at FY26-end) and higher working-capital borrowings (current borrowings ₹369.6 Cr vs ₹226.9 Cr). There were no exceptional items this half, so the PAT decline is entirely operating/financing in nature, not a one-off — adjusted and reported YoY PAT decline are both ~-41%, not a 'softer underlying' story. Against management's own May-2026 guidance of a minimum 40-50% YoY revenue growth through 2030 and an EBITDA margin band of 16-20%, this half's 27.6% revenue growth trails the guided floor, while the ~17.6% EBITDA margin sits inside the guided range — a partial miss. Segment disclosure is not applicable (Fabrication and Galvanizing run as one reportable segment under Ind AS-108). Among the quarter's corporate developments: the company closed its trading window ahead of results (Sep 28), its Group CEO Dr. Alok Das resigned (Oct 1), it won ₹272.3 Cr of new orders (Oct 12), incorporated a new subsidiary KP Industrial Park (Nov 4), and — same day as results — the board approved a ₹99.9 Cr preferential warrant issue to promoter Dr. Faruk G. Patel (34,24,657 warrants at ₹292 each, 25% payable upfront), with an EGM set for Dec 11 to approve it; promoter holding would rise to 60.57% from 57.87% on full conversion. Management's press release frames the half as "strong growth momentum," citing the 28% revenue rise and 17% EBITDA growth as reflecting "sustained operational efficiency and profitability," and notes a 0.91 debt-equity ratio it says leaves headroom for further debt funding — a framing that does not address the 41% PAT decline sitting beneath those EBITDA/revenue numbers. The company also flagged commissioning of a 7,000 MTPA tube mill, approvals across 6+ states/25+ municipal corporations, 400+ km of railway project wins, and CPRI approvals up to 400 kV — capacity additions aimed at executing the ₹1,831 Cr order book management had guided to clear within FY27.