GPT H1 EBITDA rose 16% as higher costs cut reported profit

GPT group reported consolidated H1 FY27 earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 88.9 crore, up 16.1%, while revenue rose 0.4% to Rs 593.5 crore and profit after tax fell 5.3% to Rs 42.9 crore. The operating gain reflected a 2.1-percentage-point EBITDA-margin expansion, but higher depreciation and finance cost reduced reported profit.

Why did GPT's H1 FY27 EBITDA rise despite flat revenue?

GPT's EBITDA rose because gross profit increased faster than operating expenses in H1 FY27. Consolidated revenue was Rs 593.5 crore, compared with Rs 591.3 crore in H1 FY26, while cost of goods sold declined to Rs 367.6 crore from Rs 397 crore. Gross profit therefore rose by Rs 31.5 crore to Rs 225.8 crore, and gross margin increased to 38.1% from 32.9%.

The increase in gross profit exceeded higher employee and other expenses. Employee expenses rose to Rs 38.4 crore from Rs 32.5 crore, and other expenses increased to Rs 98.5 crore from Rs 85.3 crore. EBITDA nevertheless increased by Rs 12.3 crore to Rs 88.9 crore, lifting the EBITDA margin to 15.0% from 12.9% in H1 FY26.

The Q2 FY27 result showed a smaller operating improvement than the half-year result. Revenue increased 4.6% year on year to Rs 291.4 crore and EBITDA increased 4.5% to Rs 41.3 crore, leaving the EBITDA margin unchanged at 14.2%. Sequentially, Q2 revenue was below Rs 302.1 crore in Q1 FY27 and EBITDA was below Rs 47.5 crore.

What caused GPT's H1 FY27 profit after tax to decline?

GPT's profit after tax declined because costs below EBITDA and lower other income outweighed the operating-profit increase. Consolidated depreciation increased to Rs 21.3 crore in H1 FY27 from Rs 12.4 crore in H1 FY26, while finance cost rose to Rs 20.6 crore from Rs 14.1 crore. Other income fell to Rs 8.1 crore from Rs 12 crore over the same periods.

These movements reduced profit before tax to Rs 55.2 crore from Rs 62.1 crore, and the pre-tax margin declined to 9.3% from 10.5%. Tax expense declined to Rs 13.8 crore from Rs 15.8 crore, while profit in joint ventures and non-controlling interest was Rs 1.6 crore compared with a Rs 1 crore loss a year earlier. Those offsets did not prevent profit after tax from falling to Rs 42.9 crore.

The quarterly comparison followed the same pattern in Q2 FY27. EBITDA rose to Rs 41.3 crore from Rs 39.5 crore in Q2 FY26, but depreciation increased to Rs 10.9 crore from Rs 5.4 crore and finance cost rose to Rs 11.3 crore from Rs 8.5 crore. Profit after tax consequently fell 16.3% to Rs 18.3 crore, and the profit-after-tax margin declined to 6.3% from 7.8%.

How did GPT's standalone result compare with its consolidated result?

GPT's standalone revenue declined in H1 FY27, while consolidated revenue was broadly unchanged. Standalone revenue fell 3.9% to Rs 556.8 crore from Rs 579.2 crore, whereas consolidated revenue increased 0.4% to Rs 593.5 crore. On the standalone basis, cost of goods sold decreased to Rs 345.7 crore from Rs 392.6 crore, raising gross profit to Rs 211.1 crore from Rs 186.6 crore.

Standalone EBITDA increased 13.4% to Rs 82.9 crore and the margin rose to 14.9% from 12.6%. This compared with consolidated EBITDA growth of 16.1% and a 15.0% margin. The standalone gross margin rose to 37.9% from 32.2%, slightly below the 38.1% consolidated gross margin in H1 FY27.

Below EBITDA, standalone finance cost increased to Rs 20 crore from Rs 13.8 crore and other income declined to Rs 7.2 crore from Rs 10.6 crore. Standalone profit after tax fell 3.2% to Rs 42.3 crore, compared with the 5.3% decline in consolidated profit after tax. In Q2 FY27, standalone EBITDA rose 17.7% to Rs 44.1 crore on revenue of Rs 274.7 crore.

What do GPT's cash flow and balance sheet show?

GPT generated more cash from operations in the six months to September 2026 despite lower profit before tax. Consolidated cash generated from operations reached Rs 65.16 crore, compared with Rs 22.22 crore in the six months to September 2025. After direct taxes paid of Rs 11.13 crore, net cash from operating activities was Rs 54.04 crore, up from Rs 11.52 crore a year earlier.

The improvement reflected both operating profit and a smaller working-capital outflow. Operating profit before working-capital changes was Rs 91.23 crore, compared with Rs 77.41 crore in the prior-year period, while working-capital changes used Rs 26.07 crore rather than Rs 55.20 crore. Investing activities used Rs 31.05 crore and financing activities used Rs 15.82 crore, leaving a Rs 7.16 crore net increase in cash and cash equivalents.

At September 2026, consolidated borrowings totalled Rs 312.2 crore, comprising Rs 109.6 crore of non-current borrowings and Rs 202.6 crore of current borrowings. This was above Rs 294 crore at March 2026. Current contract assets increased to Rs 568 crore from Rs 514.1 crore, while inventories increased to Rs 230.6 crore from Rs 167.3 crore.

Which segments and orders could affect GPT next?

GPT's infrastructure segment accounted for 90% of Q2 FY27 revenue and 94% of earnings before interest and tax (EBIT). The segment reported revenue of Rs 262 crore and EBIT of Rs 33 crore. The presentation attributed revenue to higher execution on the Prayagraj Ganga Bridge, Kolaghat and Kona Expressway projects, and cited an improved signalling margin profile.

Concrete sleepers contributed 10% of Q2 FY27 revenue and 6% of EBIT, reporting Rs 30 crore of revenue and Rs 2 crore of EBIT. GPT attributed the segment result to better Indian operations and export supplies. Infrastructure had an order book of Rs 4,521 crore and concrete sleepers had Rs 852 crore, together making Rs 5,373 crore.

New infrastructure awards included signalling contracts totalling Rs 428 crore in Alcon Builders and Engineers and a Rs 484 crore engineering, procurement and construction contract for a bridge over the River Mahanadi. Concrete sleepers secured a Rs 385 crore order in South Africa, alongside fresh orders at Panagarh from Eastern Railway and Bangladesh. The presentation said the Rs 5,373 crore order book was about 4.3 times FY26 revenue.

Conclusion

GPT's H1 FY27 result shows that a rise in gross margin to 38.1% supported EBITDA growth of 16.1% despite revenue growth of only 0.4%. However, depreciation rose by Rs 8.9 crore, finance cost rose by Rs 6.5 crore and other income declined, resulting in a 5.3% decline in consolidated profit after tax. Operating cash flow moved in the other direction, rising to Rs 54.04 crore.

The next disclosed factors to watch are execution of the Rs 5,373 crore order book, including the Rs 428 crore Alcon Builders and Engineers signalling awards and the Rs 484 crore Mahanadi bridge contract. The presentation also describes a proposed merger involving Alcon, intended to use GPT's net worth to support participation in larger signalling engineering, procurement and construction contracts, while consolidated borrowings stood at Rs 312.2 crore at September 2026.