Laser Power & Infra Limited: H1 margin stays flat at 12.3%

Laser Power & Infra Limited lifted H1 FY27 revenue 7.5% to Rs 1,149.8 crore as manufacturing revenue rose 13.8% to Rs 906.4 crore, outweighing a 10.7% fall in engineering, procurement and construction (EPC) revenue to Rs 243.4 crore, while standalone EBITDA margin slipped 0.1 percentage point to 12.3%.

What changed in Laser Power’s H1 FY27 revenue mix?

Laser Power’s H1 FY27 revenue mix moved further toward manufacturing, which contributed Rs 906.4 crore of the Rs 1,149.8 crore revenue from operations. Manufacturing revenue was Rs 796.6 crore in H1 FY26, while EPC revenue fell to Rs 243.4 crore from Rs 272.5 crore over the same comparison period.

The Rs 109.8 crore increase in manufacturing revenue was larger than the Rs 80.7 crore increase in total revenue from operations. The difference reflects the Rs 29.1 crore reduction in EPC revenue, showing that the manufacturing gain absorbed the decline in EPC and still produced 7.5% total revenue growth.

Manufacturing represented about four-fifths of H1 FY27 revenue from operations, compared with roughly three-quarters in H1 FY26, based on the reported segment revenue figures. EPC’s share correspondingly declined as its revenue fell even though the company’s total revenue increased by Rs 80.7 crore.

Did manufacturing growth offset Laser Power’s EPC revenue decline?

Yes, manufacturing growth more than offset the EPC decline in H1 FY27, because its Rs 109.8 crore year-on-year revenue addition exceeded EPC’s Rs 29.1 crore reduction. Laser Power reported manufacturing growth of 13.8% and EPC contraction of 10.7%, resulting in total revenue growth of 7.5%.

The Q2 FY27 segment figures showed a sharper divergence. Manufacturing revenue reached Rs 524 crore, up 29.9% from Rs 403.4 crore in Q2 FY26 and 37.0% from Rs 382.4 crore in Q1 FY27. EPC revenue was Rs 104.2 crore, down 50.7% from Rs 211.6 crore a year earlier and down 25.1% from Rs 139.1 crore in Q1 FY27.

Total Q2 FY27 revenue was Rs 628.2 crore, up 2.1% from Rs 615 crore in Q2 FY26 and 20.5% from Rs 521.5 crore in Q1 FY27. The reported movements show manufacturing revenue rose across both comparison periods, while EPC revenue was below both Q2 FY26 and Q1 FY27 levels.

Q2 also accounted for Rs 524 crore of the Rs 906.4 crore manufacturing revenue reported for H1 FY27. EPC contributed Rs 104.2 crore in Q2 against Rs 243.4 crore for the half year, underscoring that the second-quarter revenue mix was more manufacturing-led than the aggregate half-year result.

Why did Laser Power’s EBITDA margin remain at 12.3%?

The presentation does not state a specific cause for Laser Power’s margin outcome, but it reports EBITDA growth of 6.9% to Rs 141.7 crore, below the 7.5% increase in revenue, leaving EBITDA margin at 12.3% compared with 12.4% in H1 FY26. It does not provide EBITDA or margin figures separately for manufacturing and EPC.

Gross profit increased 2.9% to Rs 325 crore from Rs 315.9 crore. Employee-benefit expense rose to Rs 35.9 crore from Rs 28.5 crore, while other expenses declined to Rs 147.4 crore from Rs 154.8 crore; total expenses nevertheless increased to Rs 1,008 crore from Rs 936.6 crore.

Profit after tax increased 7.2% to Rs 51.7 crore from Rs 48.3 crore, while profit after tax margin remained 4.5% in both half-year periods. Finance costs rose to Rs 68.4 crore from Rs 63.7 crore, depreciation and amortisation increased to Rs 15.6 crore from Rs 13.6 crore, and profit before tax rose 3.7% to Rs 69.5 crore.

In Q2 FY27, EBITDA was Rs 75.9 crore with a 12.1% margin, compared with Rs 80.2 crore and a 13.0% margin in Q2 FY26. The quarter’s EBITDA was higher than Rs 65.9 crore in Q1 FY27, but its margin was below Q1 FY27’s 12.6% as well as the H1 FY27 margin of 12.3%.

What do Laser Power’s order book and balance sheet show?

Laser Power reported an H1 FY27 order book of Rs 2,542.6 crore, comprising Rs 1,302.7 crore in manufacturing and Rs 1,239.8 crore in EPC. This order book was more evenly divided between the two segments than H1 FY27 revenue, where manufacturing was Rs 906.4 crore and EPC was Rs 243.4 crore.

The reported manufacturing order book exceeded the EPC order book by Rs 62.9 crore. However, the presentation does not disclose an execution schedule, the period over which the Rs 2,542.6 crore order book will convert to revenue, or segment-level profitability associated with these orders.

On the standalone balance sheet, total assets were Rs 3,117.1 crore in H1 FY27, compared with Rs 2,339.8 crore in H1 FY26. Inventories rose to Rs 945.7 crore from Rs 597.2 crore, and trade receivables increased to Rs 1,383.1 crore from Rs 1,054.6 crore, while cash and cash equivalents declined to Rs 90 lakh from Rs 51.2 crore.

Total standalone equity increased to Rs 1,293.5 crore from Rs 655.7 crore, while total liabilities rose to Rs 1,823.6 crore from Rs 1,684.1 crore. Current borrowings declined to Rs 448.1 crore from Rs 488.7 crore, but total current liabilities increased to Rs 1,707.6 crore from Rs 1,506.4 crore.

Conclusion

Laser Power’s H1 FY27 result combined a Rs 109.8 crore increase in manufacturing revenue with a Rs 29.1 crore decline in EPC revenue, lifting total revenue by Rs 80.7 crore to Rs 1,149.8 crore. EBITDA rose Rs 9.1 crore to Rs 141.7 crore, but the 12.3% margin was 0.1 percentage point below H1 FY26, while profit after tax margin held at 4.5%.

The next results will show how the Rs 2,542.6 crore order book converts across manufacturing and EPC after Q2 EPC revenue declined 50.7% year on year to Rs 104.2 crore. The presentation does not provide an execution timetable or segment-level EBITDA, while inventories of Rs 945.7 crore, receivables of Rs 1,383.1 crore and cash of Rs 90 lakh remain reported balance-sheet items to track.