Aaron H1FY27 profit rises 122% as PAT margin reaches 10.54%

Aaron Industries Limited reported profit after tax of Rs 5.44 crore in H1FY27, up 121.78% from Rs 2.45 crore a year earlier, while revenue from operations rose 24.29% to Rs 51.56 crore. Aaron’s profit after tax margin increased 464 basis points to 10.54%, showing profit growth substantially exceeded sales growth.

How did Aaron perform in H1FY27?

Aaron reported higher revenue, operating earnings and net profit in H1FY27 than in H1FY26. Revenue from operations increased by Rs 10.08 crore to Rs 51.56 crore from Rs 41.48 crore, while total income rose by Rs 10.08 crore to Rs 51.66 crore. Total expenditure increased by Rs 7.33 crore to Rs 44.34 crore, a 19.80% rise that was below the 24.29% increase in revenue.

The increase widened at each reported profit level. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 32.83% to Rs 10.46 crore from Rs 7.88 crore. Earnings before interest and tax, or EBIT, rose 41.94% to Rs 8.44 crore, profit before tax rose 60.12% to Rs 7.32 crore, and profit after tax, or PAT, increased 121.78% to Rs 5.44 crore.

Aaron’s earnings per share, or EPS, rose to 2.59 in H1FY27 from 1.17 in H1FY26, a reported increase of 121.36%. The comparison shows that PAT added Rs 2.99 crore against a Rs 10.08 crore increase in revenue, with the fastest reported growth occurring at the net-profit level rather than the sales level.

Why did Aaron’s profit grow faster than revenue?

Aaron’s reported margin expansion, lower interest expense and lower tax expense accompanied profit growth that exceeded revenue growth in H1FY27. EBITDA margin increased 135 basis points, or bps, to 20.10% from 18.75%, while PAT margin rose 464 bps to 10.54% from 5.90%. The larger movement in PAT margin indicates that the gain in net profitability exceeded the gain in operating profitability.

Interest expense declined 18.63% to Rs 1.12 crore in H1FY27 from Rs 1.37 crore in H1FY26, even as EBIT increased by Rs 2.50 crore to Rs 8.44 crore. Tax expense fell 11.31% to Rs 1.88 crore from Rs 2.12 crore, while profit before tax rose by Rs 2.75 crore to Rs 7.32 crore.

The reported figures are consistent with a progression in which operating costs grew more slowly than revenue and finance and tax charges declined. Aaron’s presentation does not identify a specific operational cause for the margin changes. Other income was unchanged at Rs 0.10 crore in both H1FY27 and H1FY26, so the year-on-year movement was primarily reflected in the operating, interest and tax lines.

What changed in Aaron’s Q2FY27 results?

Aaron recorded quarter-on-quarter growth in Q2FY27 revenue, EBITDA and PAT, although its EBITDA margin was marginally lower than in Q1FY27. Revenue from operations rose 10.98% to Rs 27.12 crore from Rs 24.44 crore, and EBITDA increased 9.81% to Rs 5.47 crore from Rs 4.99 crore. EBITDA margin declined 18 bps to 20.01% from 20.19%.

PAT increased 12.40% quarter on quarter to Rs 2.88 crore in Q2FY27 from Rs 2.56 crore in Q1FY27. PAT margin increased 14 bps to 10.60% from 10.46%, and EPS rose to 1.37 from 1.22, a reported 12.30% sequential increase.

The year-on-year Q2 comparison also showed profit rising faster than sales. Q2FY27 revenue was 21.93% above Rs 22.24 crore in Q2FY26, while EBITDA rose 31.05% from Rs 4.18 crore and PAT rose 106.48% from Rs 1.39 crore. Q2FY27 PAT margin was 10.60%, compared with 6.27% in Q2FY26, an increase of 433 bps.

What does Aaron’s September 2026 balance sheet show?

Aaron reported total assets and total liabilities of Rs 100.30 crore at September 2026, compared with Rs 91.18 crore at March 2026. Borrowings rose by Rs 4.64 crore to Rs 32.39 crore over the six-month period, while other liabilities increased by Rs 0.22 crore to Rs 15.04 crore.

On the asset side, fixed assets were Rs 54.02 crore at September 2026, down from Rs 55.28 crore at March 2026. Other assets increased by Rs 11.16 crore to Rs 43.89 crore, while cash and cash equivalents declined by Rs 0.77 crore to Rs 2.39 crore from Rs 3.16 crore.

The longer comparison with March 2025 shows a change in the asset mix. Fixed assets were Rs 24.82 crore and construction work in progress, or CWIP, was Rs 32.52 crore at March 2025; Aaron reported no CWIP at March 2026 or September 2026. Equity capital stood at Rs 20.95 crore at September 2026, compared with Rs 10.47 crore at March 2025.

What new product opportunity has Aaron disclosed?

Aaron has disclosed a new swing metal fire-door offering for commercial and industrial fire-door systems, certified for 120 minutes of fire resistance. The company says the product was tested at Gujarat Test House in Ahmedabad under IS 3614:2021, and identifies commercial buildings, industrial facilities, hospitals, hotels and residential projects as applications.

The presentation cites a market estimate of USD 15.52 billion in 2025 rising to USD 23.49 billion in 2032, representing a stated 6.1% compound annual growth rate. That estimate is attributed in the presentation to Steller Market Research, while Aaron does not disclose revenue, order intake, capacity, launch timing or expected earnings contribution for the fire-door product.

Aaron also states that it organised its Partners Conclave 2026 in Rajkot, Gujarat, on 26 September 2026 for customers, channel partners and other stakeholders. The company says it serves more than 700 regular customers, of which more than 80% are consistent buyers, but gives no financial measure for the conclave’s effect on sales or partner additions.

Conclusion

Aaron’s H1FY27 figures show profit growth outpacing revenue growth: revenue from operations increased 24.29% to Rs 51.56 crore, EBITDA rose 32.83% to Rs 10.46 crore and PAT increased 121.78% to Rs 5.44 crore. The reported 464-bps rise in PAT margin to 10.54%, alongside lower interest and tax expense, explains the widening difference between sales and net-profit growth.

What to watch next is whether Aaron sustains the Q2FY27 pattern, where revenue increased 10.98% sequentially but EBITDA margin slipped 18 bps to 20.01%. The presentation also identifies the certified 120-minute fire-door product as an addition, but leaves its launch timetable, revenue contribution and order pipeline undisclosed.