KLRF Q2 PAT rises to Rs 3.52 crore as EBITDA improves

Kovilpatti Lakshmi Roller Flour Mills Limited reported Q2 FY27 profit after tax of Rs 3.52 crore, up from Rs 75 lakh in Q2 FY26, as EBITDA increased to Rs 8.06 crore from Rs 5.45 crore. The quarterly improvement coincided with lower employee and finance costs, although H1 FY27 EBITDA declined to Rs 12.96 crore.

What were KLRF's Q2 FY27 results?

KLRF reported higher revenue, EBITDA, profit before tax and profit after tax in Q2 FY27 than in Q2 FY26. The financial highlights put total income, net, at Rs 116.12 crore, compared with Rs 104.37 crore a year earlier, which the presentation describes as an 11% revenue increase. EBITDA rose by Rs 2.61 crore to Rs 8.06 crore, while profit before tax, or PBT, increased to Rs 4.48 crore from Rs 1.11 crore.

The Q2 abridged profit and loss statement reports total revenue of Rs 117.79 crore, compared with Rs 104.37 crore in Q2 FY26. Revenue from operations was Rs 115.49 crore, versus Rs 103.85 crore, while other income rose to Rs 2.29 crore from Rs 52 lakh. The presentation does not explain the difference between the Rs 116.12 crore total-income figure and the Rs 117.79 crore total-revenue figure.

Profitability improved below EBITDA as well. Depreciation and amortisation expense declined to Rs 1.70 crore from Rs 1.81 crore, and finance costs fell to Rs 1.87 crore from Rs 2.53 crore. PBT margin increased to 3.9% from 1.1%, while PAT reached Rs 3.52 crore, compared with Rs 75 lakh in Q2 FY26.

Why did KLRF's Q2 profit rise?

KLRF's Q2 profit rose as lower employee expense, other expenses, depreciation and finance costs offset a decline in gross profit. Employee benefits expense fell to Rs 4.51 crore from Rs 7.15 crore, a decrease of Rs 2.64 crore. Other expenses declined to Rs 15.01 crore from Rs 15.81 crore, supporting the Rs 8.06 crore EBITDA result.

Gross profit moved in the opposite direction because material cost increased to Rs 90.21 crore from Rs 75.95 crore. Purchases of traded goods rose to Rs 6.41 crore from Rs 69 lakh, while gross profit declined to Rs 27.57 crore from Rs 28.41 crore. Gross margin consequently fell by 3.5 percentage points to 23.9% from 27.4%.

EBITDA margin nevertheless improved to 7.0% in Q2 FY27 from 5.2% in Q2 FY26. The Rs 2.64 crore reduction in employee benefits expense was the largest disclosed operating-cost decrease, while lower finance costs also contributed to PBT rising by Rs 3.37 crore. The presentation identifies the reduction in employee cost and the improvement in EBITDA margin as Q2 developments.

How did KLRF's first-half performance compare?

KLRF's H1 FY27 EBITDA declined even though revenue, PBT and PAT were higher than in H1 FY26. Total income, net, was Rs 208.77 crore, compared with Rs 204.32 crore, while EBITDA fell to Rs 12.96 crore from Rs 14.10 crore. PBT increased to Rs 5.94 crore from Rs 5.76 crore, and PAT rose to Rs 4.60 crore from Rs 4.39 crore.

The H1 abridged statement reports total revenue of Rs 210.44 crore in H1 FY27 and Rs 207.27 crore in H1 FY26. Revenue from operations increased to Rs 207.76 crore from Rs 203.44 crore, but other income declined to Rs 2.68 crore from Rs 3.82 crore. As in the Q2 presentation, the cited H1 total-revenue and total-income figures differ without a reconciliation on the supplied pages.

Margin pressure remained in the six-month comparison. Gross profit declined to Rs 52.23 crore from Rs 56.10 crore, and gross margin fell to 25.1% from 27.6%. EBITDA margin decreased to 6.2% from 6.9%, as material cost increased to Rs 158.21 crore from Rs 151.17 crore despite employee benefits expense falling to Rs 9.25 crore from Rs 11.52 crore.

Lower financing and depreciation charges limited the effect of the EBITDA decline on PBT. H1 finance costs fell to Rs 3.65 crore from Rs 4.75 crore, while depreciation and amortisation declined to Rs 3.37 crore from Rs 3.59 crore. PBT margin was 2.8% in both periods, and the H1 abridged statement ends at PBT rather than providing a tax-to-PAT reconciliation for the Rs 4.60 crore PAT in the highlights.

Which KLRF segments drove Q2 revenue and PBIT?

KLRF's Food Division provided the larger share of Q2 segment revenue and the larger increase in profit before interest and tax, or PBIT. Food Division revenue rose to Rs 87.27 crore in Q2 FY27 from Rs 77.72 crore in Q2 FY26, an increase of Rs 9.55 crore. Its PBIT increased to Rs 1.16 crore from Rs 26 lakh.

The Engineering Division also recorded higher revenue and PBIT, but its absolute revenue increase was lower than Food Division's. Engineering revenue increased to Rs 28.84 crore from Rs 26.65 crore, while PBIT rose to Rs 3.53 crore from Rs 3.38 crore. The two divisions' Q2 FY27 revenue totals Rs 116.11 crore, close to the Rs 116.12 crore total income, net, in the financial highlights.

Capital employed increased in both disclosed divisions. Food Division capital employed was Rs 54.03 crore in Q2 FY27, compared with Rs 52.39 crore in Q2 FY26, while Engineering capital employed increased to Rs 28.58 crore from Rs 21.97 crore. KLRF's company overview also identifies wind and solar green energy, but the segment-revenue page supplies figures only for Food and Engineering.

Conclusion

KLRF's Q2 FY27 result showed a substantial increase in reported PAT, supported by a Rs 2.61 crore EBITDA increase and lower employee and finance costs. The H1 comparison was more mixed: revenue and PAT rose, but EBITDA declined by Rs 1.14 crore, gross profit fell by Rs 3.87 crore and EBITDA margin decreased by 0.7 percentage points.

The next financial disclosure will show whether KLRF can sustain Q2 FY27's 7.0% EBITDA margin after reporting a 6.2% H1 FY27 margin. It should also clarify, if management addresses it, the difference between the presentation's Q2 total-income figure of Rs 116.12 crore and total-revenue figure of Rs 117.79 crore, alongside the corresponding H1 difference.