Elin Q2 FY27 revenue rose 10% but EBITDA fell 30% on costs

Elin Electronics Limited (Elin) reported revenue of Rs 413.4 crore in the second quarter of financial year 2027 (Q2 FY27), up about 10% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell about 30% to Rs 14.1 crore because higher polymer and metal costs, rupee depreciation and sales mix could not be fully passed to customers.

Why did Elin’s Q2 FY27 margin decline?

Elin’s EBITDA margin declined by about 200 basis points year on year to 3.4% in Q2 FY27 from 5.4% in Q2 FY26. EBITDA fell by Rs 6.3 crore, from Rs 20.4 crore to Rs 14.1 crore, even as revenue increased by Rs 38.9 crore. The presentation attributes the margin movement principally to the inability to fully pass higher raw-material costs to customers.

Cost of materials consumed rose to 78.1% of revenue in Q2 FY27 from 76.0% a year earlier, a 210-basis-point increase. Elin said gross margins were affected by material-price inflation in polymers and metals and by depreciation of the Indian rupee against the US dollar. Elin also cited an adverse change in sales mix, meaning the Rs 413.4 crore revenue increase did not translate proportionately into operating profit.

How did Elin’s revenue growth compare with profit growth?

Elin’s Q2 FY27 revenue growth was led largely by higher sales realisations linked to material-price inflation, rather than disclosed broad-based volume growth. Revenue reached Rs 413.4 crore in Q2 FY27, compared with Rs 374.5 crore in Q2 FY26 and Rs 362.8 crore in Q1 FY27. Thus, revenue rose sequentially by Rs 50.6 crore, while EBITDA improved from Rs 4 crore in Q1 FY27 to Rs 14.1 crore in Q2 FY27.

Profit before exceptional items (PBT) was Rs 3.8 crore in Q2 FY27, down from Rs 13.9 crore in Q2 FY26. The PBT margin therefore fell to 0.9% from 3.7%, while finance costs increased to 0.7% of revenue from 0.6% and depreciation rose to 1.9% from 1.6%. Elin’s net cash or debt position moved to net debt of Rs 6.4 crore from net cash of Rs 5.9 crore, although net working-capital days were broadly stable at about 52 days against about 53 days.

For the first half of FY27, revenue increased to Rs 776.2 crore from Rs 670 crore in the first half of FY26, but EBITDA declined to Rs 18.1 crore from Rs 37.9 crore. The half-year EBITDA margin narrowed to 2.3% from 5.7%, while PBT before exceptional items moved to break-even from Rs 26.5 crore. This comparison shows that the Q2 improvement over Q1 did not reverse the first-half margin compression.

Which Elin segments drove Q2 FY27 revenue growth?

Elin’s home appliances segment was the largest contributor to Q2 FY27 growth, with revenue rising about 25% year on year to Rs 175.7 crore from Rs 140.6 crore. Kitchen and home care contributed Rs 120.8 crore, compared with Rs 97.7 crore a year earlier, while personal care rose to Rs 55 crore from Rs 42.9 crore. Elin said irons and mixer grinders recorded year-on-year volume growth, whereas other kitchen and home-care categories were largely flat.

Personal-care revenue was supported by better volumes in hair dryers, sterilizers and heated hair brushes. Elin added EDT as a customer during Q2 FY27 and said it participated in government tenders in personal care. The segment’s Q2 revenue was also higher than Rs 110.6 crore in Q1 FY27, showing a Rs 65.1 crore sequential increase in Elin’s largest reported product grouping.

What changed across Elin’s other business lines?

Elin’s total electronics manufacturing services (EMS) revenue rose to Rs 323.1 crore in Q2 FY27 from Rs 296.6 crore in Q2 FY26, while non-EMS revenue increased to Rs 90.3 crore from Rs 77.9 crore. Within EMS, lighting, fans and switches rose to Rs 77.8 crore from Rs 72.4 crore, and other EMS increased to Rs 12.7 crore from Rs 10.1 crore. Precision components and others, within non-EMS, rose to Rs 84 crore from Rs 69.2 crore.

Fractional horsepower motors moved in the other direction, declining to Rs 56.8 crore in Q2 FY27 from Rs 73.5 crore in Q2 FY26. Consumer-durables motors fell to Rs 53.1 crore from Rs 66 crore, as higher chimney-motor volumes offset a decline in mixer-grinder motor volumes. Fans revenue within this unit fell to Rs 2.5 crore from Rs 5.4 crore, while medical cartridges declined to Rs 6.3 crore from Rs 8.8 crore.

Lighting revenue increased to Rs 54.4 crore in Q2 FY27 from Rs 47.5 crore a year earlier, but fan revenue declined to Rs 14.2 crore from Rs 15.2 crore. Elin said it had added five lighting customers and expects them to ramp up over the next several quarters. Elin also said it is working on pricing terms in battens rather than pursuing wallet share, while better fan volumes were primarily in brushless direct-current ceiling fans.

Conclusion

Elin’s Q2 FY27 results show a revenue increase of Rs 38.9 crore alongside a Rs 6.3 crore EBITDA decline, with material consumption taking a larger share of sales. Home appliances, at Rs 175.7 crore, supplied most of the reported growth, while motors and medical cartridges declined year on year. Higher sales realisations supported revenue, but Elin said these did not fully recover polymer, metal and currency-related cost increases.

The next disclosed development to watch is the ramp-up of five newly added lighting customers over the next several quarters, following lighting revenue of Rs 54.4 crore in Q2 FY27. Elin’s stated work on batten pricing terms, together with its ability to pass through future material-price changes, remains relevant after the Q2 FY27 material-cost ratio rose to 78.1% of revenue.