LEAP INDIA Q2 FY27 results: net profit ₹17.80 crore

How did LEAP INDIA perform in Q2 FY27?

LEAP India reported consolidated revenue of ₹211.19 crore for Q2 FY27, up 3.8% from ₹203.41 crore in Q1 FY27. Total income rose 1.2% to ₹215.93 crore from ₹213.44 crore, while other income fell 52.7% to ₹4.74 crore from ₹10.03 crore. Total expenses were ₹185.23 crore, up 2.6% from ₹180.45 crore, led by employee cost of ₹41.12 crore against ₹37.45 crore.

EBITDA for the quarter was ₹105.01 crore, up 0.9% from ₹104.12 crore, and the EBITDA margin was 49.7%, lower by 1.5 percentage points from 51.2%. Profit before tax fell 27.7% to ₹23.85 crore from ₹32.99 crore. PAT was ₹17.80 crore against ₹24.73 crore in the previous quarter, a fall of 28.0%, and EPS was ₹0.43 against ₹0.60. The quarter included an exceptional charge of ₹6.85 crore; there was no exceptional item in Q1 FY27.

On the standalone basis, revenue was ₹173.25 crore and PAT was ₹18.06 crore for the quarter. For the first half of FY27, consolidated revenue was ₹414.60 crore and total income was ₹429.36 crore, with PBT of ₹56.84 crore, PAT of ₹42.54 crore and EPS of ₹1.02. The company filed the results with the statutory auditor's limited review reports noted.

What do the balance sheet and cash flow show?

At 30 September 2026, the consolidated balance sheet showed total assets of ₹2,793.83 crore, total equity of ₹1,511.13 crore, borrowings of ₹725.31 crore and cash of ₹181.54 crore. Inventories stood at ₹46.80 crore, trade receivables at ₹262.85 crore and trade payables at ₹105.79 crore. The company said net debt had nearly halved to ₹4,337 Mn from ₹8,010 Mn a year ago, with debt-to-equity at 0.48x from 0.96x.

Cash flow for the first half of FY27 showed operating cash flow of ₹313.98 crore, investing cash flow of ₹223.56 crore, financing cash flow of ₹84.98 crore and capital expenditure of ₹257.92 crore. The company said approximately ₹1,100 Mn was held as investments. The company also reported that net debt to EBITDA came down to about 1.9x from about 4.4x.

What else did the company announce?

On 26 October 2026, the board approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026 and noted the statutory auditor's limited review reports. The meeting ran from 5.00 p.m. to 6.30 p.m. On 19 October 2026, the company had intimation of the board meeting and said the trading window for designated persons, their immediate relatives and other insiders remained closed from 1 October 2026 until 48 hours after the results declaration.

The board also approved reclassification of the authorised share capital of Rs. 1265,06,66,760/- into 1265,06,66,760 equity shares of face value of Re. 1/- each, and alteration of the capital clause of the memorandum of association, subject to shareholder approval. It approved alterations to the articles of association conferring special rights on promoters, including the right to nominate directors on the board and its committees, also subject to shareholder approval.

Two wholly owned subsidiaries executed business transfer agreements on 26 October 2026 to acquire the Vimprotech and TIPS businesses on a slump sale basis as a going concern, for cash consideration payable in tranches. Vimprotech, with manufacturing units in South India, had total revenue of Rs. 47 crores in FY2025-26 and was to be acquired for Rs. 102 crores. TIPS, which pools returnable packing materials for the auto industry, had total revenue of Rs. 18 crores and was to be acquired for Rs. 40 crores. Both acquisitions were expected to be completed by the third quarter of FY2026-27, subject to conditions precedent.

The board appointed Reema Tayshete & Associates as secretarial auditor for five consecutive financial years from 2026-27 to 2030-31, subject to shareholder approval, and approved amendments to the pre-IPO employee stock option plans following the listing of the equity shares, subject to shareholder ratification. A separate filing stated that India Ratings & Research upgraded the long-term bank loan rating of LEAP and TARON to IND A+ / Stable from IND A and the short-term rating to IND A1+ from IND A1.

What did LEAP INDIA's management say?

Management said DSO must fall from 122 days to below 90 days by FY27-end as SAP and purchase-order processes improve. The chairman and managing director said: “We are very confident as a team that by the end of the year, we will be less than 90 days.” Management identified risks including DSO remaining above target, plastic granule inflation affecting automotive crate procurement and movement-hire demand, textile operating weakness with production at roughly 20% capacity, and GCC geopolitical and commercial volatility.

On the acquisitions, the chairman and managing director said: “On an FY26 pro forma basis, the transaction is accretive to revenue, EBITDA, and PAT, and improves our net debt to EBITDA.” The company said the Vimprotech and TIPS deal adds in-house plastics capability, more than 200 customers and reach in Southern India. Management also said: “We will continue to keep growing by the pace at which we are for the next five years, and acquisition and mergers are the way forward for our company to go and show the kind of growth that we have shown in last 10 years.”

How did LEAP INDIA shares react?

The results were filed after market on 26 October 2026, and the stock moved down from the price when the filing appeared, falling 1.4% within 5 minutes, 0.8% within 15 minutes and 1.0% within 30 minutes. On the reaction day, the stock closed 2.9% below its previous close of ₹127.10.