Expo H1 FY27 revenue and EBITDA declined despite Q2 gain

Expo Engineering & Projects Ltd reported H1 FY27 revenue from operations of Rs 28.76 crore, 12.45% below Rs 32.85 crore in H1 FY26, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 15.60% to Rs 3.30 crore. Revenue improved sequentially to Rs 15.01 crore in Q2 FY27 from Rs 13.75 crore in Q1 FY27.

How did Expo perform in H1 FY27?

Expo reported lower H1 FY27 revenue, EBITDA, profit before tax (PBT) and profit after tax (PAT) than in H1 FY26. Revenue declined by Rs 4.09 crore to Rs 28.76 crore, EBITDA decreased by Rs 0.61 crore to Rs 3.30 crore, and both PBT and PAT fell by Rs 0.55 crore to Rs 1.34 crore.

Expo’s EBITDA margin was 11.49% in H1 FY27, compared with 11.92% in H1 FY26, a decline of 43 basis points. PAT margin moved to 4.67% from 5.76%, while basic earnings per share fell to Rs 0.52 from Rs 0.83. The presentation recorded no other income in either first-half period, leaving total revenue equal to revenue from operations at Rs 28.76 crore and Rs 32.85 crore, respectively.

The H1 FY27 result was also below the full-year FY26 revenue of Rs 68.22 crore and EBITDA of Rs 6.32 crore, although the FY26 figures cover a full year rather than six months. In FY25, Expo reported revenue from operations of Rs 114.74 crore and EBITDA of Rs 8.33 crore, compared with FY26 revenue of Rs 68.22 crore and EBITDA of Rs 6.32 crore.

Did Expo’s Q2 FY27 results improve from Q1?

Expo’s Q2 FY27 revenue, EBITDA and PAT all increased from Q1 FY27. Revenue rose by Rs 1.26 crore to Rs 15.01 crore from Rs 13.75 crore, EBITDA increased by Rs 0.02 crore to Rs 1.66 crore, and PAT rose by Rs 0.14 crore to Rs 0.74 crore.

Expo’s Q2 FY27 revenue was Rs 0.01 crore above the Rs 15.00 crore reported in Q2 FY26, but EBITDA remained Rs 0.34 crore below the prior-year quarter and PAT was lower by Rs 0.11 crore. This left quarterly sales broadly unchanged year on year, while the EBITDA and PAT comparisons remained lower.

Q2 FY27 EBITDA margin was 11.05%, down from 11.96% in Q1 FY27 and 13.38% in Q2 FY26. PAT margin rose sequentially to 4.91% from 4.42% in Q1 FY27, but remained below 5.65% in Q2 FY26. Basic earnings per share were Rs 0.28 in Q2 FY27, compared with Rs 0.27 in Q1 FY27 and Rs 0.37 in Q2 FY26.

What changed in Expo’s costs and margins?

Expo’s raw-material cost increased in H1 FY27 even as revenue declined. Cost of raw materials rose by Rs 2.49 crore to Rs 9.99 crore from Rs 7.50 crore in H1 FY26, and employee benefit expenses increased by Rs 0.20 crore to Rs 4.90 crore from Rs 4.70 crore.

Other expenses fell by Rs 6.17 crore to Rs 10.56 crore in H1 FY27 from Rs 16.73 crore a year earlier. Despite that reduction, EBITDA declined to Rs 3.30 crore from Rs 3.91 crore, and the EBITDA margin decreased to 11.49% from 11.92% as revenue fell to Rs 28.76 crore from Rs 32.85 crore.

Finance cost was Rs 1.84 crore in H1 FY27, compared with Rs 1.81 crore in H1 FY26, while depreciation and amortisation declined to Rs 0.12 crore from Rs 0.21 crore. In Q2 FY27, finance cost was Rs 0.86 crore, below Rs 0.97 crore in Q1 FY27 and Rs 1.05 crore in Q2 FY26; Q2 EBITDA margin nevertheless stood at 11.05%.

How did Expo’s balance sheet change by September 2026?

Expo reduced short-term borrowings by Rs 13.08 crore between 31 March 2026 and 30 September 2026. Short-term borrowings were Rs 19.27 crore at 30 September 2026, down from Rs 32.35 crore, while current liabilities declined by Rs 18.42 crore to Rs 25.38 crore from Rs 43.80 crore.

Equity increased by Rs 17.86 crore to Rs 57.13 crore at 30 September 2026 from Rs 39.27 crore at 31 March 2026. Equity share capital rose to Rs 10.38 crore from Rs 9.12 crore and other equity increased to Rs 46.75 crore from Rs 24.65 crore. Warrant application money pending allotment was nil at 30 September 2026, versus Rs 5.50 crore at 31 March 2026.

Non-current borrowings increased to Rs 2.40 crore at 30 September 2026 from Rs 0.28 crore at 31 March 2026, while total non-current liabilities moved to Rs 3.98 crore from Rs 3.91 crore. Total assets were Rs 86.49 crore at 30 September 2026, marginally below Rs 86.98 crore at 31 March 2026.

Inventory increased by Rs 2.52 crore to Rs 52.51 crore at 30 September 2026 from Rs 49.99 crore in March, while current trade receivables declined by Rs 3.50 crore to Rs 10.19 crore. Cash and cash equivalents remained Rs 0.01 crore at both reporting dates, and bank balances other than cash and cash equivalents declined to Rs 2.37 crore from Rs 2.95 crore.

Conclusion

Expo’s sequential Q2 FY27 revenue increase did not reverse the first-half decline: H1 revenue fell by Rs 4.09 crore and EBITDA fell by Rs 0.61 crore from H1 FY26. The balance sheet moved separately, with short-term borrowings down by Rs 13.08 crore and equity up by Rs 17.86 crore between 31 March 2026 and 30 September 2026.

The next disclosed area to watch is the industry opportunity identified by Expo around strategic petroleum reserves. The presentation cites plans for six new reserve sites targeting 90 days of crude backup, compared with about 77 days, and identifies high-pressure storage vessels, gas cylinders and specialised containers as relevant products; it also states that each 1 million metric tonne reserve requires about Rs 2,500 crore of investment.