Kusumgar Q2 PAT rises 272% as revenue reaches Rs 250.9 crore

Kusumgar Limited reported Q2 FY27 profit after tax of Rs 40.6 crore, up 272% year on year from Rs 10.9 crore, while revenue increased 81% to Rs 250.9 crore. Higher sales and a richer product mix lifted the operating margin to 28% from 22%, according to management.

Why did Kusumgar’s Q2 FY27 profit increase?

Kusumgar’s Q2 FY27 profit increased because revenue, operating profit and margins were all higher than in Q2 FY26. Revenue rose by Rs 112.1 crore to Rs 250.9 crore from Rs 138.8 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, grew 132% to Rs 71.3 crore from Rs 30.8 crore. Profit after tax, or PAT, reached Rs 40.6 crore against Rs 10.9 crore a year earlier.

The increase in profit exceeded the increase in sales because margins expanded. EBITDA margin was 28% in Q2 FY27, compared with 22% in Q2 FY26, while PAT margin rose to 16% from 8%. Management attributed the EBITDA-margin expansion to higher sales and a richer product mix.

Kusumgar’s Q2 FY27 PAT was about 3.7 times the Q2 FY26 amount, rather than four times it. The comparison reflects both a larger revenue base and a higher PAT margin: Q2 FY26 revenue was Rs 138.8 crore and PAT margin was 8%, versus Rs 250.9 crore and 16% respectively in Q2 FY27.

How did Kusumgar perform against Q1 FY27?

Kusumgar’s Q2 FY27 revenue was broadly unchanged from Q1 FY27, but EBITDA and PAT were lower sequentially. Revenue rose 1% to Rs 250.9 crore from Rs 247.2 crore, which management described as quarterly revenue normalisation in line with its Q1 commentary. EBITDA declined 7% to Rs 71.3 crore from Rs 76.8 crore.

The sequential margin movement differed from the year-on-year improvement. EBITDA margin declined to 28% in Q2 FY27 from 31% in Q1 FY27, and PAT declined 5% to Rs 40.6 crore from Rs 42.6 crore. PAT margin fell by one percentage point to 16% from 17%.

Management said the quarter-on-quarter EBITDA-margin moderation mainly reflected a product-mix shift and higher raw-material costs. Cost of materials increased 20% to Rs 107.7 crore from Rs 90.1 crore, while other expenses declined 11% to Rs 53.4 crore from Rs 60.1 crore. Finance cost fell 13% to Rs 5.4 crore, whereas depreciation rose 2% to Rs 13 crore.

The Q2 FY27 result therefore shows a different pattern across the two comparisons. Revenue was Rs 3.7 crore above Q1 FY27, but PAT was Rs 2 crore lower, alongside the three-percentage-point fall in EBITDA margin. Management’s cited product mix and raw-material costs provide the disclosed explanation for that margin change.

What does Kusumgar’s H1 FY27 performance show?

Kusumgar reported first-half, or H1, FY27 revenue of Rs 498.2 crore and PAT of Rs 83.2 crore, increases of 91% and 374% from H1 FY26. H1 FY26 revenue was Rs 261.2 crore and PAT was Rs 17.6 crore. Total income rose 89% to Rs 503.7 crore from Rs 267.1 crore.

H1 FY27 operating profitability also improved from the corresponding prior-year period. EBITDA increased 156% to Rs 148 crore from Rs 57.8 crore, and EBITDA margin rose to 30% from 22%. PAT margin reached 17%, compared with 7% in H1 FY26, while finance cost declined 16% to Rs 11.6 crore and depreciation increased 19% to Rs 25.8 crore.

H1 FY27 revenue equalled about 72% of FY26 revenue of Rs 692 crore, based on reported figures. H1 FY27 PAT of Rs 83.2 crore remained below FY26 PAT of Rs 98.2 crore, so the half-year comparison does not establish a full-year outcome. It does, however, show a substantially higher base than the Rs 17.6 crore PAT reported in H1 FY26.

Across the reported annual periods, total income rose from Rs 474.6 crore in FY24 to Rs 790.2 crore in FY25, then declined to Rs 711.8 crore in FY26. EBITDA increased from Rs 199.6 crore in FY25 to Rs 207.6 crore in FY26, while PAT declined from Rs 112 crore to Rs 98.2 crore. H1 FY27 has since delivered Rs 503.7 crore of total income and Rs 148 crore of EBITDA.

What is Kusumgar’s aerospace and defence strategy?

Kusumgar describes itself as a technology-led aerospace and defence-focused company with diversification across industrial and global-brand activities. Its mission-critical systems include aerial delivery, CCD and custom solutions. The company says it develops the underlying materials, chemistry and process know-how for these products.

Management said product qualifications were progressing with armed forces and original equipment manufacturers, or OEMs, in India and overseas. Kusumgar did not disclose the number of qualifications, order values, contract values or a conversion timetable. It said it is an incumbent supplier in several areas to the Indian armed forces and is growing exports.

Kusumgar also disclosed continued investment in technology, research and development, and global partnerships to widen capabilities. Its stated plan is to broaden its product and customer base, including through customised automotive and industrial solutions. Management also cited collaboration with global brands seeking India entry and China-plus-one strategies.

The presentation says Kusumgar has built technology capabilities over more than 50 years, including co-development with users and exclusive global technology partnerships. These descriptions provide strategic context for its aerospace and defence, industrial and global-brand activities, but the Q2 FY27 presentation does not allocate the Rs 250.9 crore of revenue or Rs 71.3 crore of EBITDA by segment.

Conclusion

Kusumgar’s Q2 FY27 results show a substantial year-on-year increase in revenue, operating profit and PAT, with revenue at Rs 250.9 crore, EBITDA at Rs 71.3 crore and PAT at Rs 40.6 crore. The sequential outcome was more moderate: revenue rose 1% from Q1 FY27, while EBITDA margin fell from 31% to 28% and PAT declined 5% as management cited product mix and raw-material costs.

The next disclosures to watch from Kusumgar are progress in product qualifications with armed forces and OEMs, as well as its Q2 FY27 plan to invest in technology, research and development, and partnerships. The presentation provides no order-value target, conversion schedule or segment-level revenue split, leaving the timing and scale of qualification-led sales unresolved.