RSWM Q2 FY27: Consolidated PAT more than triples YoY to ₹25.6 Cr as OPM hits 8.3%

RSWM's consolidated PAT came in at ₹25.58 Cr for Q2 FY27, up from ₹7.43 Cr a year ago (+244% YoY) and ₹19.65 Cr last quarter (+30% QoQ), on consolidated revenue of ₹1,322.29 Cr (+14.9% YoY, +13.9% QoQ). The quarter also carries a ₹11.50 Cr exceptional provision — none existed in the year-ago quarter — taken after the Rajasthan High Court (April 6, 2026) ruled against the company on electricity-duty exemption for captive solar power; RSWM has filed an SLP before the Supreme Court and deposited ₹7.42 Cr under protest, but booked the provision on a prudent basis. Strip that one-off out and underlying PAT is closer to ₹37 Cr, or roughly +399% YoY — the reported headline actually understates the operating improvement rather than flattering it. No management press release was available to cross-check framing beyond the stock-exchange filing itself. Margins expanded on both counts: consolidated operating margin (EBITDA/revenue) moved to ~8.3% from 6.3% a year ago and 7.76% in Q1 FY27, while net margin rose to 1.93% from 0.64% YoY and 1.68% in Q1. This beats management's own prior-call guidance of "quarters similar to or better than Q1 (8% EBITDA margin)" for FY27 — Q2 came in modestly ahead of that bar. The margin gain tracks the cost levers management flagged last quarter: renewable power now supplies 60% of consumption (vs mid-20s a year ago) against a guided minimum ₹40 Cr of power-cost savings, and power & fuel costs this quarter ran at ~8.5% of revenue. No formal Street consensus for this specific quarter could be located — prior commentary pegs FY27 PAT growth expectations in the 15-20% range, which this print, even on a reported basis, is tracking well ahead of through H1. Alongside the results, the Board revised the cost of the Denim/Knit Garment JV (LNJ NDS9 Global, 74% RSWM stake) upward to ₹208.26 Cr from ₹186.30 Cr — adding a Knit Garments facility to the first phase for scale economies — and approved a further ₹46.24 Cr investment into the JV. The Board also approved a fresh ESOP grant of 9.70 lakh options at ₹146/option. Separately, RSWM booked a large non-operating OCI gain (₹176.72 Cr, excluded from PAT) on fair-valuing HEG Advance Materials and HEG Limited shares received via the HEG-Bhilwara Energy scheme of arrangement — a balance-sheet event, not an earnings one, but sizeable enough to flag. None of these items feed into the quarter's PAT; the profit improvement is driven by the topline growth and margin levers described above, next to the one-off provision drag.