Consolidated PAT +9% YoY to ₹30.2 Cr, margins compress 3pp as quartz ramp lags plan

Midwest's consolidated (primary) Q2 FY27 revenue rose 15.0% YoY to ₹182.5 Cr (down 4.8% QoQ on the monsoon-hit September quarter) and PAT grew 9.2% YoY to ₹30.2 Cr (down 2.6% QoQ), EPS ₹8.37. Profit growth trailing revenue growth reflects margin compression: OPM eased to 26.1% from 29.3% a year ago and NPM to 16.6% from 17.2% — the real story of the quarter even as the topline kept growing. Standalone — the listed parent, which also directly carries the Chimakurthy Mine — told a materially different story: standalone revenue fell 18.9% YoY to ₹99.1 Cr and PAT fell 24.9% YoY to ₹21.8 Cr (EPS ₹6.04), a divergence of more than 40 percentage points from the consolidated growth rate, pointing to subsidiaries (notably the 89%-owned Andhra Pradesh Granite (Midwest) Private Limited) increasingly driving group growth while the parent entity alone contracted. On guidance, the 26.1% OPM actually sits at the low end of management's own 26-27% FY27 band and is a sequential improvement on Q1's 25.5%, so margins are tracking what was flagged on the last call even though they're down sharply from the elevated 29.3% a year ago; tax rates were stable near 26% in both periods, confirming this is an operating-margin story, not a tax or finance-cost one. Segment-wise, granite's H1FY27 revenue of ₹349.7 Cr is 49% of the ₹720 Cr FY27 target — broadly on pace — but quartz processing delivered only ₹17.2 Cr of H1 revenue against a full-year target of ₹100-120 Cr (15-17% done), confirming the ramp remains well behind plan. That lines up with Motilal Oswal's post-Q1 call of an earnings miss and FY27 PAT-estimate cut (~20%) on the Quartz Phase 2/HSM deferral to FY29; no quarter-specific Street consensus could be sourced for comparison, and broader FY27 revenue consensus (~₹960 Cr per public trackers) still sits well above management's own ₹840 Cr guidance, pre-dating that cut. H1FY27 group revenue of ₹374.4 Cr is up 24.4% YoY but trails the ~30% growth implied by the ₹840 Cr target (vs ₹645 Cr FY26), needing H2 revenue near ₹465.6 Cr (+35% YoY) to hit it. No management press release accompanied this filing to cross-check framing beyond the board outcome letter, and no exceptional items appear in either period. The same board meeting also approved a Captive Power Purchase Agreement and a 26% stake (₹52.5 lakh, for 4 MW) in Infinite Beam Private Limited for captive solar power — a cost initiative with no revenue impact yet — plus a corporate guarantee to HDFC Bank for subsidiary AP Midwest Galaxy. Separately, and after this quarter closed, the Director of Mines Safety prohibited granite extraction at the Chimakurthy Mine from October 7, 2026 following instability from a mine collapse; this isn't in these numbers but is a material forward risk given granite's roughly 90% share of group revenue and the standalone entity's direct exposure to that mine.