Pricol Q2 FY27: Consol. PAT Up 33% YoY to ₹85 Cr, Revenue +35%, but OPM Misses 12.5-13% Guidance
PAT +33.17% YoY · revenue +34.71% · margins compressing
₹1,356.32 Cr
+34.71% YoY
₹85.21 Cr
+33.17% YoY
6.27%
-0.1pp YoY
₹6.99
Pricol's consolidated revenue from operations rose 34.7% YoY to ₹1,356.32 Cr (₹1,006.86 Cr in Q2 FY26) and 22.7% sequentially from ₹1,105.44 Cr in Q1 FY27, with consolidated PAT up 33.2% YoY to ₹85.21 Cr (₹63.99 Cr a year ago) and 27.2% QoQ from ₹67.02 Cr; EPS rose to ₹6.99 from ₹5.25 YoY. No analyst estimate specific to this quarter turned up in a search (full-year FY27 consensus pegs revenue near ₹4,740 Cr and EPS ₹26.30), so the print cannot be scored against Street on a quarter basis — vsStreet is recorded as unknown rather than guessed.
Q2 FY-2027 vs prior quarters
The growth did not translate into margin recovery. Operating margin held flat sequentially at 11.25% (vs 11.25% in Q1 FY27) but sits below the 11.72% logged a year ago, and falls short of the 12.5-13% range management guided to on the August 2026 call for Q2-Q3 via price indexation (with 75% of revenue said to be locked for the Q2 adjustment) — a clear miss against that specific guidance. The shortfall traces to raw materials, which rose to 70.0% of revenue from 68.3% a year ago, offsetting the benefit of operating leverage that pulled employee costs down to 10.4% of revenue from 11.4%. Net margin improved QoQ (6.28% vs 6.05%) but is still marginally below last year's 6.33%. Standalone PAT grew faster, at 40.6% YoY to ₹63.98 Cr versus the consolidated 33.2%, a gap worth flagging since both numbers are public.
The stock went into the print at ₹679, down 3.6% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.
700 Cr CAPEX over 18-24 months (400 Cr Polymer, 150-180 Cr DICVS, 120 Cr ACFMS). Target Rs. 8000 Cr revenue by FY31. Margins to recover to 12.5-13% in Q2-Q3 via price indexation; 75% of revenue locked for Q2 adjustment. Polymer capacity to expand from Rs. 1000 Cr to Rs. 2000 Cr turnover.
— This quarter: missed
The quarter carries no exceptional items on either side of the YoY comparison, so the growth is clean and reported figures need no adjustment. The board approved these results alongside continued progress on the previously approved (27-June-2026) demerger of the Driver Information & Connected Vehicle Solutions business into newly incorporated Pricol Autotech Ltd, and the company remains mid-way through its ₹700 Cr capex program — ₹400 Cr for Polymer (capacity target ₹1,000 Cr → ₹2,000 Cr turnover), ₹150-180 Cr for DICVS, ₹120 Cr for ACFMS — aimed at ₹8,000 Cr revenue by FY31. Management's prior tone (confident, cautiously optimistic near-term) assumed margin recovery would show up this quarter; the topline strength confirms the volume/demand side of that call, but the margin side has not yet arrived.
W1
OPM trajectory toward management's 12.5-13% target — still at 11.25% this quarter, one quarter into the promised Q2-Q3 recovery window
W2
Progress/completion of the DICVS demerger into Pricol Autotech Ltd and its effect on segment reporting
W3
Execution of the ₹700 Cr capex program (Polymer capacity ₹1,000→₹2,000 Cr turnover; DICVS ₹150-180 Cr; ACFMS ₹120 Cr) against the FY31 ₹8,000 Cr revenue target
Clean, legible statement with unambiguous column headers (verified prior-period figures tie exactly to DB comparison context). No exceptional items in current or comparable periods on either basis. Standalone PAT grew faster YoY (+40.6%) than consolidated (+33.2%), a >3pp divergence.