Frontier Springs Q2 operating profit rises 34.7%, margin 29.6%

Frontier Springs Limited reported EBITDA of Rs 29.73 crore for the quarter ended September 30, 2026, up 34.69% year on year, as revenue from operations rose 20.54% to Rs 99.73 crore and EBITDA margin reached 29.61%. Management linked the quarter’s higher activity partly to railway work deferred from the first quarter.

How did Frontier Springs perform in Q2FY27?

Frontier Springs reported faster operating-profit growth than revenue in Q2FY27. Revenue from operations increased to Rs 99.73 crore from Rs 82.74 crore in Q2FY26, while EBITDA, or earnings before interest, tax, depreciation and amortisation, rose to Rs 29.73 crore from Rs 22.07 crore.

Profit after tax, or PAT, increased 35.79% year on year to Rs 21.33 crore from Rs 15.71 crore. Profit before tax rose 35.19% to Rs 28.50 crore, while depreciation and amortisation increased 19.16% to Rs 1.30 crore. Finance cost declined to Rs 4 lakh from Rs 6 lakh in the corresponding prior-year quarter.

Management said the September-quarter performance included work that could not be completed in the first quarter because raw-material availability had been constrained by the geopolitical situation. It said demand remained strong and its order position was robust, while adding that it expected to maintain the Q2 run rate.

Why did Frontier Springs’ EBITDA margin increase?

Frontier Springs’ EBITDA margin increased to 29.61% in Q2FY27 from 26.65% in Q2FY26, an expansion of 313 basis points. A basis point is one-hundredth of a percentage point. The margin was also above 24.52% in Q1FY27, when EBITDA was Rs 19.24 crore.

The quarterly margin gain coincided with revenue growing faster than total operating expenses. Revenue from operations rose 20.54% year on year to Rs 99.73 crore, whereas total operating expenses increased 15.38% to Rs 70 crore. Total income increased 20.43% to Rs 99.85 crore, while other income fell to Rs 12 lakh from Rs 17 lakh.

For the six months ended September 30, 2026, Frontier Springs reported an EBITDA margin of 27.46%, compared with 26.88% in H1FY26. The 60-basis-point half-year increase was smaller than the Q2 year-on-year increase, while the company said the first quarter had been affected by raw-material availability constraints.

Management identified steel, oil and gas prices as a risk to future margins. It said it was factoring current input costs into tender bids, but the release did not quantify either the expected change in input costs or the potential margin effect.

What were Frontier Springs’ H1FY27 financial results?

Frontier Springs reported H1FY27 revenue from operations of Rs 178.19 crore, up 12.72% from Rs 158.08 crore in H1FY26. EBITDA rose 15.23% to Rs 48.97 crore from Rs 42.50 crore, meaning operating-profit growth exceeded revenue growth over the six-month period.

PAT rose 9.48% to Rs 33.34 crore from Rs 30.45 crore, while profit before tax increased 12.53% to Rs 46.55 crore from Rs 41.01 crore. Depreciation and amortisation rose 19.69% to Rs 2.55 crore, and finance cost declined to Rs 10 lakh from Rs 13 lakh.

The reported period comparison shows that the Q2 margin of 29.61% was above the H1FY27 average of 27.46%. Management attributed part of the stronger second-quarter activity to completion of railway work that had been deferred during the first quarter.

Which businesses are expected to support Frontier Springs’ growth?

Frontier Springs said tenders for 4,000 wagons had been finalised in its coil-springs business, which management expects to drive the segment’s next phase of growth. The company’s disclosed product portfolio serves wagon, locomotive and carriage sectors, alongside air springs and forging items.

The air-springs business was operating at around 250 coach sets a month, according to management, which also cited a strong order book. The release did not disclose air-springs revenue, margins or the monetary value of its order book, so its direct contribution to Q2FY27 revenue of Rs 99.73 crore was not specified.

Management said forging growth in Q2FY27 was driven entirely by railways, with orders continuing to flow in. Frontier Springs has also taken on automotive job work to raise capacity utilisation; management said margins on that work are slightly lower, but additional volumes would improve utilisation.

Frontier Springs said its Failure Indication and Brake Application system had received approval cited by the company as RDSO approval. Management expects a trial order shortly, followed by a six-to-eight-month trial before commercial production; the filing did not provide the order size, revenue potential or a fixed production date.

What is Frontier Springs’ FY27 revenue target?

Frontier Springs said management is targeting FY27 revenue of at least Rs 450 crore while continuing to work towards stated guidance of Rs 500 crore. This is a management target rather than reported revenue, against Rs 178.19 crore of revenue from operations reported for H1FY27.

The company has manufacturing facilities in Kanpur, Uttar Pradesh, and Poanta Sahib, Himachal Pradesh. Its portfolio includes hot coiled compression springs, forging items ranging from 100 grams to 20 kilograms, and air springs, providing the operating context for the wagon tenders, monthly air-springs production and automotive job work disclosed for FY27.

Conclusion

Frontier Springs delivered a Q2FY27 increase in revenue, EBITDA and PAT, with EBITDA rising 34.69% to Rs 29.73 crore against 20.54% revenue growth to Rs 99.73 crore. The resulting 29.61% margin was 313 basis points above Q2FY26 and exceeded the 27.46% margin reported for H1FY27.

The next developments to watch are execution of the 4,000-wagon coil-spring tenders, whether air-springs output remains around 250 coach sets a month, and the timing and scale of the expected Failure Indication and Brake Application trial order. Management’s pursuit of at least Rs 450 crore of FY27 revenue, alongside steel, oil and gas cost pressures, remains the disclosed plan and key unresolved variable.