Jubilant EBITDA fell 56% despite 15% Q2 FY27 revenue rise

Jubilant Agri & Consumer Products reported Q2 FY27 revenue from operations of Rs 592.1 crore, up 15% year on year, but EBITDA fell 56% to Rs 28.4 crore and EBITDA margin declined to 4.8% from 12.5%. Expenses increased 26%, outpacing revenue growth, while P&K Fertilizers segment result fell 91%.

Why did Jubilant’s EBITDA fall despite revenue growth?

Jubilant’s EBITDA fell because Q2 FY27 total expenses rose 26% to Rs 563.7 crore, faster than the 15% increase in revenue from operations to Rs 592.1 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, declined to Rs 28.4 crore from Rs 63.9 crore in Q2 FY26. The company defines EBITDA as before non-operating income and exceptional items.

The sequential comparison also shows the change in cost absorption. Revenue increased 13% from Rs 523.2 crore in Q1 FY27, while total expenses increased 24% from Rs 455 crore. As a result, EBITDA was 58% below the Rs 68.2 crore reported in Q1 FY27, and the Q2 EBITDA margin was below both the 13.0% preceding-quarter margin and 12.5% year-earlier margin.

Profit before tax, or PBT, before exceptional items fell 65% year on year to Rs 20.4 crore in Q2 FY27 from Rs 58.4 crore. Depreciation and amortisation rose 21% to Rs 5.2 crore, while finance costs rose 147% to Rs 3.2 crore. The presentation shows no exceptional item in either Q2 period.

Profit after tax, or PAT, declined 58% to Rs 17.6 crore from Rs 42.3 crore, and PAT margin narrowed to 3.0% from 8.2%. Diluted earnings per share decreased 59% to Rs 11.35 from Rs 27.41, while total comprehensive income declined 58% to Rs 17.8 crore from Rs 42.6 crore.

Which Jubilant segments shaped Q2 FY27 performance?

Jubilant’s Performance Polymers & Chemicals business generated the largest Q2 sales increase, with segment sales rising 33% to Rs 385.3 crore from Rs 289.7 crore. Its segment result nevertheless declined 33% to Rs 26.2 crore from Rs 38.8 crore, so the higher sales did not result in a higher reported segment result.

P&K Fertilizers, meaning phosphatic and potassic fertilizers, recorded the sharpest reduction in Q2 segment result. Sales declined 8% to Rs 201.4 crore from Rs 219.8 crore, while segment result fell 91% to Rs 2.7 crore from Rs 29.1 crore. This Rs 26.4 crore decline was larger than the Rs 12.6 crore decline in Performance Polymers & Chemicals segment result.

Management linked fertilizer demand to El-Nino conditions, an overall rainfall deficit of more than 12%, delayed sowing and erratic rainfall. According to the presentation, these conditions affected timely sowing of major crops and reduced fertilizer application, providing the stated operating context for P&K Fertilizers’ Q2 result.

Agri Nutrients remained smaller in sales but improved its reported result. Q2 FY27 sales increased 59% to Rs 5.4 crore from Rs 3.4 crore, and segment result was Rs 0.9 crore compared with a Rs 20 lakh loss in Q2 FY26. Management attributed double-digit Agri Nutrient growth to portfolio expansion and wider market coverage.

How did Jubilant perform in H1 FY27?

Jubilant’s H1 FY27 revenue from operations grew 17% to Rs 1,115.3 crore from Rs 954.9 crore, while EBITDA was Rs 96.6 crore compared with Rs 127.2 crore a year earlier. The consolidated financial highlights describe the EBITDA decline as 24%, whereas the detailed H1 financial-performance table states a 26% decline; both show EBITDA margin falling to 8.4% from 13.3%.

H1 FY27 total expenses rose 23% to Rs 1,018.7 crore, exceeding the 17% revenue growth rate. PBT before exceptional items declined 30% to Rs 81.9 crore from Rs 116.6 crore, and PAT declined 26% to Rs 63.7 crore from Rs 86.4 crore. PAT margin reduced to 5.7% from 9.0%.

Performance Polymers & Chemicals increased H1 sales by 30% to Rs 766.8 crore, but its segment result fell 2% to Rs 91.5 crore. P&K Fertilizers sales declined 6% to Rs 336.9 crore and its segment result declined 82% to Rs 7.8 crore. Agri Nutrients sales rose 69% to Rs 11.6 crore and segment result rose to Rs 2.3 crore from Rs 30 lakh.

What operational pressures did Jubilant identify?

Jubilant identified supply-chain disruption affecting key raw-material supply conditions as a factor affecting gross margins and working-capital deployment in Agri Products. Lower fertilizer demand also slowed inventory liquidation and raised working-capital requirements, according to management’s Q2 FY27 operational review.

The stated inventory issue coincided with the 8% Q2 sales decline in P&K Fertilizers to Rs 201.4 crore and the 91% decline in that segment’s result to Rs 2.7 crore. Management said the focus in key operating regions is stock liquidation to unlock working capital rather than providing a quantified working-capital target.

Finance costs rose to Rs 3.2 crore in Q2 FY27 from Rs 1.3 crore in Q2 FY26 and were Rs 5.5 crore in H1 FY27 versus Rs 3 crore a year earlier. The presentation reports these increases but does not give a separate explanation for the higher finance-cost line.

What is Jubilant’s outlook after Q2 FY27?

Jubilant management expects fertilizer demand to remain subdued in the near term and input costs to remain under pressure because of ongoing geopolitical uncertainty. Its disclosed operating plan is to liquidate stock in key operating regions, following slower fertilizer inventory liquidation during the period.

Management expects the Agri Nutrient business to grow in double digits, following Q2 FY27 sales growth of 59% to Rs 5.4 crore and H1 FY27 growth of 69% to Rs 11.6 crore. The presentation does not disclose a consolidated FY27 revenue, EBITDA, PAT or margin target.

Conclusion

Jubilant’s Q2 FY27 results show that the 15% increase in revenue to Rs 592.1 crore did not translate into higher earnings, as expenses rose 26%, EBITDA declined 56% to Rs 28.4 crore and margin fell 7.7 percentage points to 4.8%. Performance Polymers & Chemicals supplied the largest sales gain, while P&K Fertilizers had the largest reduction in segment result.

The next disclosed items to watch are management’s stock-liquidation effort in key regions, its expectation of subdued near-term fertilizer demand and pressure on input costs. Management also expects double-digit Agri Nutrient growth, but the presentation provides no consolidated FY27 earnings or margin target.