Advit Jewels Q2 profit rises 28% as EBITDA margin eases

Advit Jewels reported Q2 FY27 revenue from operations of Rs 58.8097 crore, up 23.32% year on year, while net profit rose 27.98% to Rs 12.7591 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 18.77% to Rs 16.4283 crore, but its margin declined to 27.80% from 29.00%.

How did Advit Jewels perform in Q2 FY27?

Advit Jewels increased total income by 23.93% year on year to Rs 59.1044 crore in Q2 FY27 from Rs 47.6899 crore in Q2 FY26. Revenue from operations accounted for Rs 58.8097 crore of the Q2 FY27 total, compared with Rs 47.6879 crore a year earlier, while other income rose from Rs 0.20 lakh to Rs 29.47 lakh.

Total expenditure rose to Rs 42.6761 crore in Q2 FY27 from Rs 33.8581 crore in Q2 FY26. EBITDA consequently increased to Rs 16.4283 crore from Rs 13.8318 crore, but its 18.77% growth was below the 23.93% increase in total income. The EBITDA margin was therefore 27.80%, compared with 29.00% a year earlier, a decline of 120 basis points. A basis point is one-hundredth of a percentage point.

Profit before tax rose to Rs 15.5778 crore in Q2 FY27 from Rs 12.0770 crore in Q2 FY26. Tax increased to Rs 2.8187 crore from Rs 2.1072 crore, while net profit increased by Rs 2.7893 crore. Net profit margin rose 68 basis points to 21.59% from 20.91%, meaning the lower EBITDA margin was accompanied by a higher reported bottom-line margin.

Why did Advit Jewels’ EBITDA margin decline in Q2 FY27?

Advit Jewels’ EBITDA margin declined because EBITDA grew more slowly than total income in the reported comparison. Q2 FY27 EBITDA of Rs 16.4283 crore on total income of Rs 59.1044 crore produced the stated 27.80% margin, against Rs 13.8318 crore of EBITDA on Rs 47.6899 crore of income and a 29.00% margin in Q2 FY26.

The quarterly cost lines changed substantially. Cost of materials consumed increased to Rs 65.0970 crore in Q2 FY27 from Rs 14.6261 crore in Q2 FY26, while changes in inventories of finished goods, work in progress and stock in trade moved to negative Rs 27.7348 crore from Rs 16.2178 crore. Employee benefit expense rose to Rs 1.0039 crore from Rs 0.8658 crore and other expense increased to Rs 4.3100 crore from Rs 2.1484 crore.

The inventory-change line was the main numerical offset to the higher materials-consumption figure, changing by Rs 43.9526 crore between the two quarters. Total expenditure nevertheless increased by Rs 8.8180 crore to Rs 42.6761 crore. The presentation does not give an operational explanation for the cost and inventory movements, so the disclosures show the reported margin calculation rather than a detailed management explanation for it.

How did lower finance costs support Advit Jewels’ Q2 profit?

Advit Jewels’ lower finance costs supported profit growth below EBITDA. Finance costs fell to Rs 0.5053 crore in Q2 FY27 from Rs 1.5951 crore in Q2 FY26, a reduction of Rs 1.0898 crore. That reduction was larger than the Rs 0.1855 crore increase in depreciation and amortisation expense, which rose to Rs 0.3452 crore.

The gap between EBITDA and profit before tax narrowed to Rs 0.8505 crore in Q2 FY27 from Rs 1.7548 crore a year earlier. EBITDA margin declined by 120 basis points, but profit before tax increased 28.99% to Rs 15.5778 crore. The reported movements in finance costs and depreciation account for the narrower gap without requiring an increase in EBITDA margin.

Advit Jewels reported earnings per share of Rs 2.83 in Q2 FY27, compared with Rs 3.11 in Q2 FY26. The presentation attributes the lower per-share figure to a larger share base in Q2 FY27. Aggregate net profit rose 27.98% to Rs 12.7591 crore, while the per-share measure declined because that profit was divided across more shares.

What does Advit Jewels’ H1 FY27 performance show?

Advit Jewels reported H1 FY27 revenue from operations of Rs 94.1307 crore, up 28.14% from Rs 73.4616 crore in H1 FY26. Total income increased 28.64% to Rs 94.5068 crore, including Rs 0.3761 crore of other income, compared with Rs 0.40 lakh in the corresponding prior-year half.

H1 FY27 EBITDA increased 24.32% to Rs 28.1528 crore from Rs 22.6458 crore, while EBITDA margin declined to 29.79% from 30.83%. The 104-basis-point first-half decline followed the same direction as the Q2 movement. However, the H1 FY27 margin was 1.99 percentage points above the standalone Q2 FY27 margin of 27.80%.

Net profit for H1 FY27 was Rs 20.9458 crore, a 31.67% increase from Rs 15.9083 crore in H1 FY26. Net profit margin rose to 22.16% from 21.65%, while finance costs declined to Rs 1.9574 crore from Rs 3.0942 crore. Earnings per share increased to Rs 5.29 from Rs 4.97 over the half year, unlike the Q2 year-on-year comparison.

Conclusion

Advit Jewels’ Q2 FY27 results combined 23.32% growth in revenue from operations with a 27.98% increase in net profit. EBITDA rose to Rs 16.4283 crore, though its margin fell 120 basis points to 27.80%; meanwhile, lower finance costs of Rs 0.5053 crore helped net profit margin increase to 21.59%.

The next quarterly disclosure will show whether the H1 FY27 pattern persists, with EBITDA margin at 29.79% versus 30.83% in H1 FY26 and net profit margin at 22.16% versus 21.65%. The presentation does not disclose a FY27 revenue, profit or margin target, leaving subsequent reported cost, inventory and finance-cost movements as the measures to watch.