Consolidated PAT rises 41% YoY to ₹14.9 Cr as revenue surges 53%, but margins compress
PAT +41.46% YoY · revenue +52.49% · margins compressing
₹580.94 Cr
+52.49% YoY
₹14.86 Cr
+41.46% YoY
2.54%
-0.2pp YoY
₹0.7
Vidya Wires reported consolidated revenue of ₹580.9 Cr for Q2 FY27, up 52.5% YoY and 5.7% QoQ, with consolidated PAT of ₹14.9 Cr — up 41.5% YoY but down 13.3% sequentially from ₹17.1 Cr in Q1 FY27. EPS was ₹0.70 versus ₹0.65 a year ago; PBT was ₹20.2 Cr versus ₹14.5 Cr YoY. There were no exceptional items in either period, so reported and adjusted growth are identical. Consolidated figures are primary; standalone PAT came in higher at ₹16.5 Cr, a divergence of roughly 11% from consolidated, traced entirely to wholly owned subsidiary Alcu Industries running near breakeven (₹0.46 Cr net profit on ₹170.2 Cr of H1 FY27 revenue) as its ALCU facility ramps.
Q2 FY-2027 vs prior quarters
The revenue growth tracks the capacity expansion management flagged on the May 2026 concall — guidance was for significant volume growth as total capacity nears ~36,000 MT and the new ALCU facility ramps up for EV, renewable and transformer applications, and that volume did show up (+52.5% YoY). What didn't show up was the margin expansion management also guided for: operating margin compressed to roughly 3.5% from 4.09% a year ago (and from 4.03% in Q1 FY27), because cost of materials consumed rose to 93.3% of revenue from 86.6% a year ago, outpacing topline growth. Employee costs (+36% YoY) and depreciation (+63% YoY, as the ALCU facility capitalises) added further pressure, partly offset by lower finance costs (₹2.5 Cr vs ₹3.0 Cr YoY) after the company used part of its December 2025 IPO proceeds (₹100 Cr utilised against the stated repayment/prepayment objective) to pare borrowings.
The stock went into the print at ₹81.77, down 10.4% over the past month of trading.
What the summary numbers don't show
Depreciation up 63% YoY to ₹1.26 Cr and capital work-in-progress up to ₹95.4 Cr (from ₹72.3 Cr at March 2026) as ALCU capacity build continues
Management guides for significant volume growth in FY27, driven by a major capacity expansion set to nearly double total capacity to approximately 36,000 MT by late 2026. While not providing specific figures, they expect improved EBITDA per ton and margin expansion, fueled by the ramp-up of the new ALCU facility and it
— This quarter: missed
On guidance, this quarter is a partial match: management's prior framing paired volume growth with "improved EBITDA per ton and margin expansion" from the ALCU ramp — the volume delivered, the margin expansion did not, consistent with management's own caveat that "optimal capacity utilisation" is targeted only for FY28. No formal street consensus for this quarter could be found — Vidya Wires, listed only since December 2025, has limited analyst coverage — so vsStreet is unknown rather than a measured beat or miss. Working capital also stretched: H1 FY27 operating cash flow was a net outflow of ₹35.0 Cr versus a ₹6.9 Cr outflow in H1 FY26, as trade receivables and inventories built up to support higher volumes. The quarter's other corporate items — the AGM on September 22 approving FY26 financials and re-appointing the auditor, and the trading-window closure ahead of this results announcement — were procedural and don't bear on the numbers. Management's press release confined itself to the headline quarterly figures (EBITDA ₹23.96 Cr, net sales ₹578.3 Cr) without additional commentary.
W1
Whether operating margin recovers toward the guided expansion path as Alcu facility utilisation climbs toward the FY28 optimal-capacity target
W2
Cost-of-materials ratio — 93.3% of revenue this quarter vs 86.6% a year ago; a further rise would keep compressing margins
W3
Alcu Industries' profitability trajectory — H1 FY27 net profit was just ₹0.46 Cr on ₹170.2 Cr revenue, with management guiding improved EBITDA/ton from this facility