GEE Limited H1FY27 Revenue Up 24% but EBITDA Margin Falls to 7.8%

GEE Limited reported H1FY27 revenue from operations of Rs 204.20 crore, up 24.0% year on year, but EBITDA margin declined to 7.8% from 8.2% as total expenditure rose 24.6%. Lower interest expense helped profit before tax before exceptional items increase 54.6% to Rs 10.71 crore.

Why did GEE’s H1FY27 EBITDA margin decline?

GEE’s EBITDA margin declined by 40 basis points to 7.8% in H1FY27 because total expenditure rose 24.6%, marginally faster than the 24.0% increase in revenue. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 17.6% to Rs 15.91 crore from Rs 13.53 crore, trailing the Rs 39.57 crore increase in revenue.

Material consumed increased 24.2% to Rs 154.03 crore in H1FY27 from Rs 124.01 crore in H1FY26, broadly matching the rise in revenue from Rs 164.63 crore to Rs 204.20 crore. Gross margin was 24.6%, compared with 24.7% a year earlier, while total expenditure increased to Rs 188.29 crore from Rs 151.10 crore.

How did GEE’s Q2FY27 operating performance compare?

GEE reported a 7.8% EBITDA margin in both Q2FY27 and Q1FY27, but this was below the 10.5% margin reported in Q2FY26. Q2FY27 revenue was Rs 101.34 crore, compared with Rs 102.86 crore in Q1FY27 and Rs 85.45 crore in Q2FY26, while EBITDA was Rs 7.91 crore versus Rs 8.00 crore and Rs 8.94 crore, respectively.

Q2FY27 material consumed was Rs 74.69 crore, up from Rs 62.64 crore in Q2FY26, and total expenditure rose to Rs 93.43 crore from Rs 76.46 crore. Gross margin improved to 26.3% from 22.9% in Q1FY27 but remained below the 26.7% recorded in Q2FY26.

Profit before tax, or PBT, was Rs 5.26 crore in Q2FY27, compared with Rs 5.45 crore in Q1FY27 and Rs 5.62 crore in Q2FY26. The Q2FY27 PBT margin was 5.2%, against 5.3% in the preceding quarter and 6.6% in the prior-year quarter.

Why did GEE’s pre-tax profit rise faster than EBITDA?

GEE’s PBT before exceptional items rose 54.6% to Rs 10.71 crore in H1FY27 because interest expense fell 17.8% to Rs 3.80 crore while EBITDA increased 17.6% to Rs 15.91 crore. Depreciation was nearly unchanged at Rs 2.05 crore, compared with Rs 2.03 crore in H1FY26, and other income increased to Rs 65 lakh from Rs 6 lakh.

Profit before interest and tax, or PBIT, increased 25.7% to Rs 14.52 crore from Rs 11.55 crore. The Rs 82 lakh reduction in interest expense from Rs 4.62 crore, together with the Rs 59 lakh increase in other income, contributed to PBT margin rising to 5.25% from 4.21%.

What happened to GEE’s adjusted profit and balance sheet?

GEE’s adjusted profit after tax, or adjusted PAT, rose 36.7% to Rs 7.09 crore in H1FY27 from Rs 5.18 crore in H1FY26, and adjusted PAT margin increased to 3.47% from 3.15%. Reported PAT was Rs 10.78 crore because the presentation records a Rs 3.70 crore exceptional item in Q1FY27.

In Q2FY27, reported PAT and adjusted PAT were both Rs 3.94 crore because no exceptional item was recorded for the quarter. Q1FY27 reported PAT was Rs 6.85 crore and adjusted PAT was Rs 3.15 crore, while H1FY27 tax expense increased to Rs 3.63 crore from Rs 1.74 crore a year earlier.

Total assets rose to Rs 342.45 crore at H1FY27 from Rs 315.47 crore at FY26, while total equity increased to Rs 225.02 crore from Rs 215.01 crore. Trade receivables increased to Rs 65.49 crore from Rs 55.04 crore, inventories declined to Rs 87.24 crore from Rs 89.72 crore, and short-term borrowings rose to Rs 56.57 crore from Rs 38.95 crore.

Conclusion

GEE’s first-half result shows a gap between sales and operating-profit growth: revenue rose by Rs 39.57 crore, while EBITDA rose by Rs 2.38 crore and the margin decreased by 40 basis points. Reduced finance costs changed the outcome below the operating line, with PBT before exceptional items rising by Rs 3.78 crore and adjusted PAT increasing by Rs 1.91 crore.

The next disclosed development is the Thane land project. GEE handed possession of its 13,391 square metre leasehold plot to Fen-Kin Infinity LLP on 12 November 2026 and expects to receive about 2.9 lakh square feet of RERA-registered built-up area; management cites potential realisation of more than Rs 400 crore over five years at an assumed average of about Rs 14,000 per square foot, making project execution and eventual proceeds matters to watch.