Regaal Resources Q2 FY27: PAT +38.7% YoY to ₹23.2 Cr as margins expand, revenue flat

Regaal Resources' standalone PAT came in at ₹23.18 Cr for Q2 FY27, up 38.7% year-on-year from ₹16.71 Cr (adjusted for a small ₹0.64 Cr one-off, the underlying YoY gain is ~42.6%) and up 73.9% sequentially from a seasonally soft Q1's ₹13.33 Cr. Revenue from operations was effectively flat-to-down YoY at ₹316.56 Cr (-1.1% vs ₹320.02 Cr), even as it jumped 56.6% QoQ off the weak June-quarter base. EPS rose to ₹2.25 from ₹1.86 YoY, diluted marginally by a 2.7-lakh-share ESOP allotment during the quarter. Because revenue is flat and profit is up sharply, this is a margin story, not a growth story. The margin bridge explains the divergence: operating margin expanded to roughly 17.1% from ~10.95% a year ago and ~15.3% last quarter, while net margin rose to 7.33% from 5.22% YoY. The driver is a mix shift — Purchases of Stock-in-Trade, a low-margin trading line, fell from ₹107.6 Cr in the year-ago quarter to nil this quarter, pulling combined material-and-trading cost down to ~59% of revenue from ~75% a year earlier as the company leans harder into core maize-starch manufacturing. Working against this, finance costs jumped 60.6% YoY to ₹14.44 Cr and nearly doubled QoQ from ₹7.91 Cr, tracking a near-doubling of borrowings (current + non-current) used to fund capex that took PP&E from ₹365.8 Cr to ₹751.7 Cr over the half — consistent with management's FY27 plan to lift crushing volumes to 400k+ tonnes from 265k in FY26. Against that FY27 guidance (given at the August 2026 concall: ₹39-40 Cr full-year finance cost, crushing volumes 400k+ tonnes, value-added mix 20-22% of revenue), the quarter is mixed. Finance cost is the one guidance line this filing lets us check directly, and it's already a concern: H1 FY27 finance cost of ₹22.35 Cr is more than half the full-year guide after just two quarters, and the quarterly run-rate is accelerating (₹7.91 Cr → ₹14.44 Cr), putting the ₹39-40 Cr target at risk unless H2 moderates sharply. Crushing-volume and value-added-mix progress cannot be verified from this filing — the company reports a single segment under Ind AS 108 with no volume or mix disclosure. The quarter also carries a ₹0.64 Cr exceptional provision tied to the Bihar SGST reimbursement dispute (Note 4): the state's demand was revised up to ₹16.56 Cr from ₹14.90 Cr, of which ₹1.02 Cr is deemed recoverable from distributors and the balance provided for; management maintains no interest liability is likely to crystallise. Separately, the company picked up minor ROC penalties (₹10 lakh plus ₹20.67 lakh) this quarter — immaterial to the P&L. No broker preview or consensus estimate for this specific quarter turned up in a web search, consistent with this being a thinly covered small-cap; street comparison is unavailable. A turbine-related plant disruption in October 2026 falls into Q3 FY27 and is not reflected in these numbers.