Birla Corporation Q2 FY27 results: net profit down 58.6% to ₹37.47 crore, revenue up 9.5%

How did Birla Corporation perform in Q2 FY27?

Birla Corporation reported consolidated revenue of ₹2,415 crore for Q2 FY27, up 9.5% from ₹2,207 crore in Q2 FY26 but down 8.7% from ₹2,646 crore in Q1 FY27. EBITDA was ₹227.80 crore, down 25.3% year on year and 33.4% sequentially, while the margin declined to 9.4% from 13.8% and 12.9%, respectively.

Consolidated profit before tax fell 60.3% year on year to ₹51.98 crore and 66.6% sequentially to ₹51.98 crore. Net profit was ₹37.47 crore, down 58.6% from ₹90.48 crore and 67.6% from ₹115.73 crore; basic EPS was ₹4.86, compared with ₹11.75 and ₹15.03, respectively. On a standalone basis, revenue was ₹1,388.33 crore and profit after tax was ₹21.43 crore.

What changed in Birla Corporation's costs and profit?

Total expenses rose 13.6% year on year to ₹2,389 crore, exceeding the 9.5% increase in revenue. Cost of materials increased 19.7% to ₹442.39 crore and other expenses rose 10.4% to ₹1,627 crore, while employee cost was ₹153.54 crore, depreciation was ₹138.47 crore and finance costs were ₹63.12 crore.

Other income declined 4.2% to ₹25.77 crore from ₹26.91 crore, and there was no exceptional item in either quarter. Tax fell 64.1% to ₹14.51 crore from ₹40.47 crore. The available figures show the cost and expense changes, but the filing excerpts do not state why profit declined.

How did the first half of FY27 go?

In H1 FY27, Birla Corporation reported consolidated revenue of ₹5,061.87 crore, up 8.6% from ₹4,660.75 crore in H1 FY26. Total income rose 8.3% to ₹5,110.6 crore from ₹4,719.6 crore, while the EBITDA margin for the latest quarter was 9.4%.

Profit before tax fell 32.6% to ₹207.68 crore from ₹308.33 crore. Profit after tax declined 27.1% to ₹153.2 crore from ₹210.05 crore, and basic EPS fell 27.1% to ₹19.89 from ₹27.28.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹14,323.03 crore, down from ₹14,510.06 crore on 31 March 2026. Total equity rose to ₹7,611.56 crore from ₹7,364.72 crore, while borrowings fell to ₹2,917.3 crore from ₹3,275.27 crore and cash declined to ₹32.92 crore from ₹129.64 crore.

Inventories were ₹1,110.7 crore, trade receivables ₹449.43 crore and trade payables ₹831.03 crore at the quarter end. H1 FY27 operating cash flow was ₹131.25 crore, compared with ₹212.7 crore in H1 FY26; investing cash flow was ₹352.72 crore against ₹223.6 crore, and financing cash flow was negative ₹580.69 crore against negative ₹511.83 crore. Capital expenditure was ₹312.51 crore, compared with ₹223.19 crore.

How has Birla Corporation done over the last 8 quarters?

Revenue peaked at ₹2,836.12 crore in Q4 FY26 and was ₹2,415.42 crore in Q2 FY27. Net profit reached ₹294.77 crore in Q4 FY26 before falling to ₹37.47 crore in Q2 FY27, while the EBITDA margin moved from 18.0% to 9.4% over the same period.

Revenue has risen year on year in each of the last three quarters. The latest quarter nevertheless showed lower revenue and profit than Q1 FY27, when revenue was ₹2,646.45 crore, net profit ₹115.73 crore and the EBITDA margin 12.9%.

Which businesses drove the quarter?

The Cement segment reported revenue of ₹2,255.59 crore, up 8.8% from ₹2,073.16 crore in Q2 FY26. EBIT was ₹112.08 crore, compared with ₹196.41 crore in the year-ago quarter, and the segment EBITDA margin was 5.0%.

Jute revenue rose 20.6% to ₹160.39 crore from ₹133.03 crore, while EBIT increased to ₹11.01 crore from ₹3.96 crore. Its EBITDA margin was 6.9%. Others recorded revenue of ₹1.59 crore, up 8.9%, and EBIT of negative ₹1.23 crore, compared with negative ₹1.51 crore.

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026 on 31 October 2026. It also authorised the issuance of listed, secured or unsecured, redeemable non-convertible debentures of up to ₹250 crore through private placement, in one or more tranches, within the company’s approved borrowing limits.

The authorised person may determine the issue size, tenure, coupon, redemption and other terms. The debentures are proposed for listing on BSE and NSE, and secured NCDs may carry a first pari-passu charge over the company’s fixed assets. The same-day filing reported no dividend or appointment.

How did Birla Corporation shares react?

Birla Corporation shares were 2.6% higher on the reaction day from the pre-results close of ₹775.5, compared with a 2.1% median rise for the industry’s other stocks and a 1.4% rise in the Nifty Microcap 250. The stock’s excess return against the industry median was 0.5 percentage points on the reaction day.

By the next day’s close, the stock was up 3.4% from its pre-results close, against a 3.5% industry median and an excess sector move of negative 0.1 percentage points. Earlier reaction-day moves included 19.4% on 9 May 2025, negative 7.9% on 30 July 2025 and negative 7.0% on 25 July 2026.

How did other Cement & Cement Products companies do?

Among 18 Cement & Cement Products companies that had filed for the quarter as of 4 November 2026, the median revenue growth was 15.3%, compared with Birla Corporation’s 9.5% growth. Six peers grew slower than the company and 12 peers grew faster than the company. Eight of the 18 peers reported higher profit.