Marvel H1 reported PAT rises 60% as margin reaches 7.2%

Marvel Decor Limited reported H1 FY27 profit after tax (PAT) of Rs 3.30 crore, up 60.0% year on year, while its reported PAT margin rose 187 basis points to 7.2%. Total income from operations increased 18.4% to Rs 45.72 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) grew 39.0% to Rs 5.74 crore.

How did Marvel’s H1 FY27 profit outpace income growth?

Marvel’s reported profit outpaced income growth because total expenditure rose 16.0%, below the 18.4% increase in total income from operations in H1 FY27. Total income from operations reached Rs 45.72 crore, compared with Rs 38.60 crore in H1 FY26, while total expenditure increased to Rs 39.98 crore from Rs 34.47 crore. EBITDA consequently increased 39.0% to Rs 5.74 crore from Rs 4.13 crore.

Revenue was the larger contributor to the period’s income growth. Revenue increased 21.1% year on year to Rs 44.76 crore in H1 FY27 from Rs 36.97 crore in H1 FY26, while other income declined 41.2% to Rs 96 lakh from Rs 1.63 crore. The rise in total income therefore occurred despite lower other income, and reported profit increased to Rs 3.30 crore from Rs 2.06 crore.

What drove Marvel’s margin expansion in H1 FY27?

Marvel’s reported PAT margin expanded to 7.2% in H1 FY27 from 5.3% in H1 FY26, an increase of 187 basis points. EBITDA margin rose 186 basis points to 12.6% from 10.7%, while profit-before-tax margin reached 8.5%, up 245 basis points from the prior first half. A basis point is one-hundredth of a percentage point.

Below EBITDA, depreciation rose 17.3% to Rs 1.11 crore from Rs 95 lakh, slower than the 39.0% increase in EBITDA. Interest expense declined 12.2% year on year to Rs 75 lakh from Rs 86 lakh, and profit before tax increased 66.6% to Rs 3.88 crore from Rs 2.33 crore. Tax expense rose to Rs 53 lakh from Rs 22 lakh, while reported profit nevertheless increased 60.0%.

Marvel also reported adjusted PAT of Rs 3.35 crore for H1 FY27, up 58.9% from Rs 2.11 crore in H1 FY26. The difference between adjusted and reported profit was an extraordinary item of Rs 5 lakh, the same amount shown in the prior first half. Adjusted margin rose to 7.3% from 5.5%, and reported earnings per share increased to Rs 1.86 from Rs 1.16.

How did Marvel’s H1 FY27 compare with H2 FY26?

Marvel’s H1 FY27 income and profit exceeded H2 FY26 levels, although EBITDA margin was lower than in the preceding half. Total income from operations increased 36.0% from Rs 33.61 crore in H2 FY26 to Rs 45.72 crore in H1 FY27. EBITDA rose 29.9% from Rs 4.42 crore to Rs 5.74 crore, but EBITDA margin declined 60 basis points from 13.2% to 12.6%.

Reported profit increased 44.7% from Rs 2.28 crore in H2 FY26 to Rs 3.30 crore in H1 FY27. Profit before tax rose 43.0% to Rs 3.88 crore from Rs 2.71 crore, while reported PAT margin increased 43 basis points from 6.8% to 7.2%. Revenue advanced 42.1% sequentially to Rs 44.76 crore, even as other income fell 54.4% from Rs 2.11 crore to Rs 96 lakh.

Interest expense was Rs 75 lakh in H1 FY27, up 19.9% from Rs 63 lakh in H2 FY26, while depreciation was Rs 1.11 crore compared with Rs 1.08 crore. Tax increased 37.7% to Rs 53 lakh from Rs 39 lakh. Total expenditure grew 37.0% sequentially to Rs 39.98 crore, slightly faster than total income, which corresponded with the lower EBITDA margin versus H2 FY26.

What did Marvel disclose on cash conversion and its India business?

Marvel reported consolidated operating cash flow of Rs 22 lakh in H1 FY27, compared with negative Rs 89 lakh in H1 FY26. Pre-working-capital cash profit increased to Rs 5.51 crore from Rs 3.15 crore. Consolidated inventory reduced 5.4% to Rs 52.09 crore at September 2026 from Rs 55.06 crore at March 2026, representing Rs 2.98 crore of inventory cash released during the half year.

Marvel’s standalone India business reported total revenue of Rs 26.60 crore in H1 FY27, up 23.3% year on year, and PAT of Rs 1.58 crore, up 140.9%. Its net profit margin was 5.92%, compared with 3.03% in the previous first half. Management also said standalone India revenue from operations was Rs 25.84 crore, compared with Rs 20.13 crore in H1 FY26, supported by window blinds, curtains, motorisation and project execution capabilities.

Working capital remains a stated management focus. Trade receivables stood at Rs 25.54 crore on 30 September 2026, and management said payment from one major project in October 2026 reduced total receivables to Rs 20.46 crore. Management’s disclosed priorities include dealer engagement, hospitality and premium projects, operational efficiency, Marvel’s India business, Callistus in international markets, and SOLIS in motors and home automation.

Conclusion

Marvel’s H1 FY27 results show reported PAT growing faster than total income, with profit rising 60.0% against an 18.4% increase in total income from operations. Revenue growth of 21.1% offset a 41.2% decline in other income, while EBITDA rose 39.0%, interest expense fell year on year, and reported PAT margin reached 7.2%.

The next disclosures to watch are cash conversion and working-capital progress after consolidated operating cash flow turned positive at Rs 22 lakh and receivables fell to Rs 20.46 crore following the October 2026 project payment. Management has also identified dealer engagement, hospitality and premium projects, operating efficiency, and development of SOLIS and Callistus as its stated growth priorities.