Epigral Q2: consolidated PAT, revenue up 27% YoY; margin compresses to 18.3% from 22.5%

Epigral Limited (formerly Meghmani Finechem) reported consolidated revenue of ₹745.99 Cr for Q2 FY27, up 27.0% YoY from ₹587.36 Cr and up 5.8% QoQ from ₹705.36 Cr. Consolidated PAT was ₹65.08 Cr, up 27.1% YoY from ₹51.22 Cr but down 34.8% sequentially from ₹99.74 Cr. Basic EPS was ₹15.09 against ₹11.87 a year ago and ₹23.12 last quarter. Standalone and consolidated tell the same story — standalone PAT of ₹64.42 Cr differs from the consolidated ₹65.08 Cr only by the ₹0.66 Cr share of profit picked up from two associates.

The YoY profit growth matched revenue growth almost exactly, holding net margin flat at 8.66% (vs 8.69% a year ago), but that masks real pressure at the operating line: OPM compressed to 18.3% from 22.5% YoY and from 25.4% last quarter, as cost of materials consumed rose 34.6% YoY to ₹469.40 Cr, outpacing the 27% revenue gain. Net margin was cushioned only because the effective tax rate eased to 25.9% from 26.4% a year ago. The larger QoQ PAT decline is driven more by working-capital timing than fresh deterioration: the inventory (finished goods/WIP) line added ₹3.70 Cr to costs this quarter versus reducing costs by ₹37.14 Cr in Q1 FY27 — a roughly ₹41 Cr swing through the P&L — compounded by finance costs jumping 49% QoQ to ₹10.78 Cr on higher short-term borrowings. Neither quarter carried exceptional items.

The stock went into the print at ₹901.75, down 10.9% over the past month of trading.

For context: revenue is at a 6-quarter high.

New wholly-owned subsidiary Epigral Advanced Materials Ltd (incorporated Jul 7, 2026) and two associates (ReNew Green GJS Three, Pro-Zeal Green Power Ten) added ₹0.66 Cr associate profit share to consolidated PBT.

Management's prior concall guided FY27-28 capex of ~₹400 Cr/year, a 15-20% five-year CAGR target for revenue and profit, and 20% ROCE despite lower margins expected from new epoxy/MPP lines — this quarter's 27% YoY growth in both revenue and PAT runs ahead of the top end of that CAGR band, while the OPM compression toward 18% is exactly the margin dynamic management had flagged as a trade-off for the new, lower-margin capacity. Capex execution continues: capital work-in-progress rose to ₹498.25 Cr from ₹450.83 Cr at FY26-end, consistent with the ₹600 Cr epoxy resin plant expansion announced alongside Q1 FY27 results on Jul 27, 2026. No verified sell-side consensus estimate for this specific quarter turned up in public previews, so the print is being read against guidance only, not street numbers. Separately, the company disclosed on Oct 29, 2026 — after quarter-end — that it received a ₹28.11 Cr income-tax demand; this does not feature in the Q2 P&L. No management press release accompanying this result was available to cross-check against their own framing.