Buildpro Q2 profit reaches record as revenue rises 43%

Shankara Buildpro Limited reported its highest quarterly profit after tax (PAT) of Rs 46.18 crore in Q2FY27, up 57% year on year, as revenue rose 43% to Rs 2,280 crore and PAT margin expanded 18 basis points to 2.02%.

What drove Buildpro's Q2FY27 revenue increase?

Buildpro's Q2FY27 revenue increased 43% year on year to Rs 2,280 crore, driven by steel volume growth, realisations and recovery in the non-steel marketplace. Revenue was also 21% higher quarter on quarter than Rs 1,890 crore in Q1FY27. For H1FY27, revenue rose 32% year on year to Rs 4,170 crore from Rs 3,163 crore in H1FY26.

Steel was the largest contributor to the increase, with Q2FY27 sales rising 46% year on year to Rs 2,100 crore. Steel volume reached 3.03 lakh tonne, up 27% from 2.39 lakh tonne in Q2FY26 and 21% from 2.50 lakh tonne in Q1FY27. Buildpro said Pipes & Tubes, Flats and Roofing recorded broad-based volume growth.

The Q2FY27 mix shows steel revenue of Rs 2,100 crore and non-steel revenue of Rs 181 crore, compared with total sales of Rs 2,280 crore. Steel revenue growth of 46% exceeded total revenue growth of 43%, while non-steel grew 17%. In H1FY27, steel sales grew 34% and non-steel sales grew 16%, against a 32% increase in consolidated revenue.

How did Buildpro's profit and margins change in Q2FY27?

Buildpro's Q2FY27 PAT rose 57% year on year and 29% quarter on quarter to a record Rs 46.18 crore. This compared with Rs 29.39 crore in Q2FY26 and Rs 35.78 crore in Q1FY27. PAT margin reached 2.02%, increasing from 1.84% a year earlier and 1.89% in the preceding quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 53% year on year to Rs 77 crore in Q2FY27 from Rs 51 crore. EBITDA margin was 3.39%, up 22 basis points, or bps, from 3.17% in Q2FY26 and 13 bps from 3.26% in Q1FY27. The presentation identifies Q2FY27 as Buildpro's highest quarterly revenue, EBITDA and PAT to date.

For H1FY27, PAT increased 33% year on year to Rs 81.96 crore, while EBITDA rose 34% to Rs 139 crore. The H1 PAT margin rose 2 bps to 1.97%, and EBITDA margin gained 6 bps to 3.33%. Profit before tax advanced 36% to Rs 110 crore, while tax increased 45% to Rs 28 crore.

Which businesses supported Buildpro's marketplace growth?

Buildpro's steel marketplace supported the larger share of Q2FY27 growth, producing Rs 2,100 crore in revenue and 3.03 lakh tonne in volume. The 27% year-on-year steel-volume rise was ahead of the 19% increase recorded for H1FY27, when volume reached 5.53 lakh tonne. Buildpro also said it entered Rajasthan with its first fulfilment center in Jaipur.

Buildpro's non-steel marketplace delivered Rs 181 crore in Q2FY27 revenue, up 17% year on year and 10% quarter on quarter. This was its second consecutive quarter of growth after what the presentation described as subdued FY25 and FY26. Fitting, Sanitaryware, Electrical and Accessories led the increase, while Tiles and Plumbing had yet to pick up.

Lighting and Paints, described as newer categories, grew from a small base in Q2FY27 and broadened the product mix. Buildpro said growth in non-steel came despite uneven recovery across building-material categories. Both Retail and Non-Retail channels grew during the quarter, alongside partnerships with brands including APL Apollo, AM/NS India, JSW, SAIL, Jaquar, Kohler and Kajaria.

How did Buildpro manage working capital and finance costs?

Buildpro held working capital at 22 days in Q2FY27, below its stated 30-day threshold, while revenue grew 43% year on year. The company linked this discipline to an asset-light balance sheet following its demerger from Shankara Building Products and reported return on capital employed (RoCE) of 43% in Q2FY27.

Finance cost was 0.52% of Q2FY27 revenue, down from 0.60% in Q2FY26 and 0.55% in Q1FY27. In absolute terms, finance cost rose to Rs 12 crore from Rs 10 crore a year earlier as revenue increased to Rs 2,280 crore. Buildpro attributed the lower revenue ratio to tighter working-capital management.

Cost of materials consumed rose 43% year on year to Rs 2,165 crore in Q2FY27, matching the growth rate in revenue. Employee expenses were Rs 15 crore, up 1%, while other expenses increased 28% to Rs 23 crore. Depreciation was Rs 3 crore, compared with Rs 2 crore in Q2FY26, and basic earnings per share rose 57% to Rs 3.81.

Conclusion

Buildpro's Q2FY27 results combined higher steel volume, non-steel recovery and wider margins: revenue rose 43% to Rs 2,280 crore, EBITDA rose 53% to Rs 77 crore and PAT rose 57% to Rs 46.18 crore. The comparison with Q1FY27 also showed continuing momentum, with revenue up 21%, steel volume up 21% and PAT up 29%.

What to watch next is whether Buildpro can sustain the 22-day working-capital position while steel volumes increase and non-steel recovery remains uneven in Tiles and Plumbing. The presentation also discloses leadership continuity following the appointment of Dhananjay Mirlay Srinivas as Managing Director from November 1, 2026, for a five-year term.