Duroply Q2 profit rises 82% as EBITDA margin reaches 7.1%

Duroply Industries Limited reported Q2 FY27 profit after tax of Rs 4.375 crore, up 81.68% year on year, as earnings before interest, tax, depreciation and amortisation margin reached 7.05% from 6.18%. Revenue from operations rose 16.99% to Rs 122.242 crore, and management called it the company’s most profitable quarter to date.

How did Duroply perform in Q2 FY27?

Duroply recorded revenue from operations of Rs 122.242 crore in Q2 FY27, compared with Rs 104.492 crore in Q2 FY26 and Rs 99.614 crore in Q1 FY27. That represented year-on-year growth of 16.99% and quarter-on-quarter growth of 22.72%, while the Q2 scorecard reported annualised return on capital employed of 14.76%.

Profit after tax, or PAT, rose faster than revenue. PAT increased from Rs 2.408 crore in Q2 FY26 to Rs 4.375 crore in Q2 FY27, while profit before tax, or PBT, rose from Rs 2.668 crore to Rs 4.858 crore. Compared with Q1 FY27, PAT increased from Rs 60.8 lakh and PBT increased from Rs 1.041 crore.

The sequential comparison also showed a marked change in margins. EBITDA margin increased to 7.05% in Q2 FY27 from 4.84% in Q1 FY27, a rise of 2.21 percentage points, while PAT margin rose to 3.58% from 0.61%. PBT margin was 3.97% in Q2 FY27, compared with 1.04% in the preceding quarter.

What changed in Duroply’s operating profitability?

Duroply’s EBITDA was Rs 8.620 crore in Q2 FY27, up 33.39% year on year from Rs 6.462 crore and 78.94% quarter on quarter from Rs 4.817 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, therefore grew faster than the 16.99% increase in revenue, taking the margin to 7.05%.

Gross margin did not increase over either comparison period. Gross margin was 34.55% in Q2 FY27, versus 34.82% in Q2 FY26 and 35.54% in Q1 FY27; cost of goods sold was Rs 80.007 crore. The company’s Q2 highlights put cost of goods sold at 65.5% of revenue, against 65.2% a year earlier and 64.5% in Q1 FY27.

Operating expenses were Rs 33.626 crore in Q2 FY27, rising 11.27% from Rs 30.219 crore in Q2 FY26, below the 16.99% revenue increase. Sequentially, operating expenses rose 8.44% from Rs 31.010 crore, while revenue rose 22.72%. The difference between gross margin and operating expenses resulted in EBITDA of Rs 8.620 crore.

Below EBITDA, interest expense declined to Rs 1.868 crore from Rs 2.379 crore in Q2 FY26 and Rs 1.989 crore in Q1 FY27. Depreciation rose to Rs 1.893 crore from Rs 1.415 crore a year earlier and Rs 1.788 crore sequentially. PBT margin reached 3.97%, compared with 2.55% in Q2 FY26 and 1.04% in Q1 FY27.

How did Duroply’s H1 FY27 results compare with H1 FY26?

Duroply reported H1 FY27 revenue from operations of Rs 221.857 crore, up 12.0% from Rs 198.031 crore in H1 FY26. PAT rose 25.9% to Rs 4.983 crore from Rs 3.957 crore, with Q2 FY27 contributing Rs 4.375 crore of the reported six-month PAT.

H1 FY27 EBITDA rose 13.4% to Rs 13.437 crore from Rs 11.852 crore in H1 FY26. EBITDA margin moved to 6.06% from 5.98%, while gross margin improved to 34.99% from 34.49%. The first-half EBITDA margin gain of 0.08 percentage points was narrower than the 0.87-point year-on-year improvement reported in Q2.

PBT increased 29.5% to Rs 5.898 crore in H1 FY27 from Rs 4.553 crore, and PBT margin rose to 2.66% from 2.30%. Interest expense fell 15.5% to Rs 3.857 crore, while depreciation increased 34.6% to Rs 3.681 crore. Other income declined 16.6% to Rs 43.7 lakh from Rs 52.4 lakh.

Working-capital data showed debtor days at 38 in H1 FY27, down from 42 in FY26, while inventory days increased to 151 from 145. Payable days rose to 88 from 72, and the cash conversion cycle reduced to 101 days from 115 days, although it remained above the 94 days reported in FY25.

What operating developments did Duroply disclose in Q2 FY27?

Duroply reported 18.5% year-on-year growth in own manufacturing and 15.4% growth in contract manufacturing in Q2 FY27. Those growth rates accompanied the 16.99% increase in revenue from operations to Rs 122.242 crore, but the presentation does not disclose revenue, EBITDA or PAT separately for either manufacturing stream.

Duroply also disclosed the launch of DURO HDMMR in the medium-density fibreboard, or MDF, category during FY27. The product is described as High Density Max Moisture Resistant, has a 15-year guarantee, and is specified with density above 850 kilograms per cubic metre and 100% hardwood construction.

The presentation lists Duroply’s presence across more than 26 states and union territories, with Kolkata identified as its head office, New Delhi as its corporate office and Rajkot as a factory location. Managing Director and Chief Executive Officer Akhilesh Chitlangia said Q2 FY27 was Duroply’s most profitable quarter to date as the company marked 70 years of excellence.

Conclusion

Duroply’s Q2 FY27 performance combined 16.99% revenue growth with a 33.39% increase in EBITDA and an 81.68% rise in PAT. EBITDA margin increased to 7.05% from 6.18% a year earlier even as gross margin declined to 34.55% and cost of goods sold reached 65.5% of revenue.

The next results will show whether the FY27 DURO HDMMR MDF launch and the 18.5% growth in own manufacturing translate into disclosed product or segment sales. The presentation provides no sales target or launch timetable for the product, while inventory days of 151 and a 101-day H1 FY27 cash conversion cycle remain measures to track in subsequent disclosures.