Mallcom Q2 profit doubles as revenue rises 30.9% sequentially

Mallcom (India) Ltd more than doubled Q2-FY27 profit after tax to Rs 7.7 crore, up 108.1% year on year, as operational income rose 30.9% sequentially to Rs 143.3 crore. Earnings before interest, tax, depreciation and amortisation margin increased 350 basis points year on year to 10.61%, although it declined from Q1-FY27.

What drove Mallcom’s Q2-FY27 profit increase?

Mallcom’s Q2-FY27 profit increase reflected higher operational income, lower total expenses year on year and wider operating margins. Profit after tax, or PAT, rose to Rs 7.7 crore from Rs 3.7 crore in Q2-FY26, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 53.5% to Rs 15.2 crore from Rs 9.9 crore.

Operational income increased 2.9% year on year to Rs 143.3 crore from Rs 139.3 crore in Q2-FY26. Total expenses fell 1% to Rs 128.1 crore from Rs 129.4 crore, despite the increase in income. Profit before tax, or PBT, rose 103.9% to Rs 10.4 crore from Rs 5.1 crore, while tax rose to Rs 2.7 crore from Rs 1.4 crore.

The quarterly increase also reached per-share earnings. Diluted earnings per share rose 107.2% to Rs 12.41 from Rs 5.99 a year earlier, while total comprehensive income increased 148.1% to Rs 6.7 crore from Rs 2.7 crore. Other comprehensive income was negative Rs 1 crore in both Q2-FY27 and Q2-FY26.

How did Mallcom’s Q2-FY27 income compare with prior periods?

Mallcom’s Q2-FY27 operational income rose 30.9% quarter on quarter to Rs 143.3 crore from Rs 109.5 crore in Q1-FY27, and rose 2.9% from Rs 139.3 crore in Q2-FY26. The Q2 figure was therefore Rs 33.8 crore above the preceding quarter and Rs 4 crore above the corresponding prior-year quarter.

Total expenses increased 33.7% sequentially to Rs 128.1 crore from Rs 95.8 crore, while EBITDA increased 10.9% to Rs 15.2 crore from Rs 13.7 crore. Mallcom said the higher sales volumes supported savings in employee, manufacturing, operational and administrative expenses, although lower unit sales realisation affected the sequential margin.

The first-half comparison was different because H1-FY27 operational income declined 3.4% to Rs 252.8 crore from Rs 261.8 crore in H1-FY26. EBITDA still increased 5.1% to Rs 28.9 crore from Rs 27.5 crore as total expenses fell 4.4% to Rs 223.9 crore. H1-FY27 PAT increased 5.1% to Rs 14.3 crore from Rs 13.6 crore.

Why did Mallcom’s Q2-FY27 EBITDA margin change?

Mallcom’s Q2-FY27 EBITDA margin rose to 10.61% from 7.11% in Q2-FY26 because of raw-material savings, better unit sales realisation and lower employee, manufacturing and operational expenses. The 350-basis-point, or 3.5-percentage-point, expansion accompanied a 53.5% increase in EBITDA to Rs 15.2 crore, compared with a 2.9% increase in operational income.

The margin moved in the opposite direction from Q1-FY27, falling 190 basis points from 12.51% despite the 30.9% sequential rise in income. Mallcom attributed the decline to lower unit sales realisation, partly offset by savings in employee, manufacturing, operational and administrative expenses supported by higher sales volumes.

PAT margin followed the same pattern, rising 271 basis points year on year to 5.37% from 2.66% but falling 66 basis points from 6.03% in Q1-FY27. Depreciation was Rs 3.5 crore in Q2-FY27, against Rs 3 crore a year earlier, while finance cost rose to Rs 2.3 crore from Rs 2.1 crore.

At the H1-FY27 level, EBITDA margin improved 93 basis points to 11.43% from 10.50% in H1-FY26. Mallcom said lower material costs and higher unit sales realisation more than offset higher employee, manufacturing, marketing, operational and administrative expenses. The H1 margin was 82 basis points above the Q2-FY27 margin of 10.61%.

What does Mallcom’s H1-FY27 performance show?

Mallcom’s H1-FY27 results show improved profitability despite lower six-month operational income. EBITDA was Rs 28.9 crore on income of Rs 252.8 crore, compared with Rs 27.5 crore on Rs 261.8 crore in H1-FY26, lifting EBITDA margin to 11.43% from 10.50%.

Below EBITDA, depreciation increased 31.5% to Rs 7.1 crore from Rs 5.4 crore, while finance cost declined 4.9% to Rs 3.9 crore from Rs 4.1 crore. Other income rose to Rs 1.2 crore from Rs 50 lakh, contributing to a 3.2% rise in PBT to Rs 19.1 crore from Rs 18.5 crore.

Mallcom reported total assets of Rs 556.6 crore at H1-FY27, compared with Rs 512.5 crore at FY26. Inventory increased to Rs 147.4 crore from Rs 138.4 crore, trade receivables rose to Rs 88.3 crore from Rs 86.2 crore, and property, plant and equipment reached Rs 226.7 crore from Rs 224.3 crore.

Equity increased to Rs 331.1 crore at H1-FY27 from Rs 318.4 crore at FY26. Long-term borrowings rose to Rs 28 crore from Rs 6.2 crore, while short-term borrowings were largely unchanged at Rs 113.9 crore versus Rs 114.1 crore.

What is Mallcom doing to support future volumes?

Mallcom commenced the third phase of construction at its Chandipur, West Bengal facility during Q2-FY27, adding about 50,000 square feet of floor area for garment and footwear operations. The presentation does not disclose a completion date, capital cost or production-capacity figure for this construction phase.

Management said a healthy order book and robust enquiry pipeline support its expectation of sustained business momentum and further volume growth. Management expects higher volumes to improve cost absorption and margins in coming quarters, but did not provide a revenue, EBITDA margin or profit target. Mallcom also received the Eastern India Best Employer Award 2026 during the period.

Conclusion

Mallcom’s Q2-FY27 recovery combined a 30.9% sequential increase in operational income to Rs 143.3 crore with a 108.1% year-on-year increase in PAT to Rs 7.7 crore. The 350-basis-point year-on-year EBITDA-margin expansion to 10.61% reflected lower costs and better realisation, while H1-FY27 profit rose despite a 3.4% decline in income.

Next, investors can watch whether the order book and enquiry pipeline convert into higher volumes, as management expects volume growth to improve cost absorption and margins. Progress on the 50,000-square-foot Chandipur expansion and changes in unit sales realisation will also matter after Q2-FY27 EBITDA margin declined 190 basis points from Q1-FY27.