Pranav Q2 profit rises 53% as EBITDA margin gains 371 bps

Pranav Constructions Private Limited (Pranav) reported Q2-FY27 profit after tax of Rs 16.5 crore, up 52.8% from Rs 10.8 crore in Q2-FY26, while revenue from operations rose 7.3% to Rs 174.5 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 36.0% to Rs 30.6 crore and its margin expanded 371 basis points to 17.54%.

What drove Pranav’s Q2-FY27 profit increase?

Pranav’s Q2-FY27 profit increase was driven by EBITDA growth that exceeded revenue growth and by lower finance costs than in Q1-FY27. Revenue from operations rose by Rs 11.8 crore year on year to Rs 174.5 crore, while operating expenses increased by Rs 3.7 crore to Rs 143.9 crore. EBITDA consequently rose by Rs 8.1 crore from Rs 22.5 crore in Q2-FY26 to Rs 30.6 crore.

Profit before tax was Rs 21.4 crore in Q2-FY27, up 55.1% from Rs 13.8 crore a year earlier. Tax increased 63.3% to Rs 4.9 crore from Rs 3 crore, but profit after tax still rose by Rs 5.7 crore to Rs 16.5 crore. Total comprehensive income was Rs 16.6 crore, compared with Rs 10.8 crore in Q2-FY26, including Rs 10 lakh of other comprehensive income.

On a sequential basis, Pranav’s Q2-FY27 profit after tax was 14.6% above Rs 14.4 crore in Q1-FY27, while revenue rose 6.1% from Rs 164.5 crore. EBITDA increased 4.4% from Rs 29.3 crore. Finance costs fell 15.7% quarter on quarter to Rs 8.6 crore from Rs 10.2 crore, while profit before tax rose 15.7% to Rs 21.4 crore.

How did Pranav’s revenue, costs and margins change?

Pranav expanded its Q2-FY27 EBITDA margin to 17.54% from 13.83% in Q2-FY26 because disclosed operating expenses grew more slowly than revenue. Revenue increased 7.3% year on year, whereas operating expenses rose 2.6%. That difference coincided with EBITDA growth of 36.0%, compared with the 7.3% increase in revenue.

The margin movement was different from Q1-FY27. EBITDA margin declined by 27 basis points from 17.81% in Q1-FY27, despite EBITDA increasing by Rs 1.3 crore. Operating expenses rose 6.4% to Rs 143.9 crore from Rs 135.2 crore, slightly ahead of the 6.1% rise in revenue. A basis point is one-hundredth of a percentage point.

Pranav’s profit after tax margin reached 9.46% in Q2-FY27, compared with 6.64% in Q2-FY26 and 8.75% in Q1-FY27. This represented a 282-basis-point year-on-year increase and a 71-basis-point sequential increase. Diluted earnings per share were Rs 1.81, up 47.2% from Rs 1.23 a year earlier and 9.7% from Rs 1.65 in the preceding quarter.

What did Pranav report for H1-FY27?

Pranav reported H1-FY27 profit after tax of Rs 30.9 crore, up 50.0% from Rs 20.6 crore in H1-FY26, on revenue growth of 11.2% to Rs 339 crore. EBITDA increased 38.0% to Rs 59.9 crore, and EBITDA margin advanced 343 basis points to 17.67% from 14.24%. The half-year period covers the first two quarters of FY27.

Operating expenses increased 6.8% to Rs 279.1 crore in H1-FY27, below the 11.2% increase in revenue. Profit before tax rose 49.8% to Rs 40 crore, while finance costs increased 20.5% to Rs 18.8 crore and tax rose 49.2% to Rs 9.1 crore. Total comprehensive income was Rs 31 crore, compared with Rs 20.5 crore in H1-FY26.

Pranav’s H1-FY27 profit after tax margin was 9.12%, a 236-basis-point increase from 6.76% a year earlier, although it was below the Q2-FY27 margin of 9.46%. Diluted earnings per share rose 46.0% to Rs 3.46 from Rs 2.37. Other income was Rs 90 lakh in H1-FY27, against Rs 80 lakh in H1-FY26, while depreciation and amortisation expense was Rs 2 crore.

The historical income statement shows EBITDA margin of 12.85% in FY24, 15.18% in FY25, 16.87% in FY26 and 17.67% in H1-FY27. Revenue rose from Rs 447.5 crore in FY24 to Rs 761.6 crore in FY26, while profit after tax increased from Rs 39.6 crore to Rs 71.3 crore over the same two full financial years.

How did Pranav’s operating indicators track earnings?

Pranav’s Q2-FY27 pre-sales increased 26.3% year on year to Rs 109 crore, while units sold increased to 48 from 40 and area sold rose to 0.35 lakh square feet from 0.31 lakh square feet. Q2-FY27 pre-sales also exceeded Rs 89.7 crore in Q1-FY27, when Pranav sold 30 units and 0.23 lakh square feet.

Collections did not follow the same quarterly pattern as pre-sales. Pranav reported Q2-FY27 collections of Rs 65.4 crore, down from Rs 66.1 crore in Q2-FY26 and Rs 93.8 crore in Q1-FY27. Average price realisation was Rs 30,821 in Q2-FY27, below Rs 39,531 in Q1-FY27 but above Rs 27,815 in Q2-FY26.

For H1-FY27, Pranav reported pre-sales of Rs 198.7 crore, compared with Rs 195.9 crore in H1-FY26, and collections of Rs 159.2 crore, compared with Rs 140.4 crore. Units sold were unchanged at 78, while area sold declined to 0.58 lakh square feet from 0.60 lakh square feet. Average price realisation rose to Rs 34,226 from Rs 32,385.

Pranav’s half-year balance sheet and cash flow figures provide additional context. Cash and cash equivalents were Rs 190.1 crore at H1-FY27, compared with Rs 17.8 crore at FY26, while net cash generated from operating activities was Rs 13.3 crore after a Rs 41.3 crore outflow in FY26. The cash flow statement records Rs 298.7 crore of proceeds from issuance of equity shares in H1-FY27.

Conclusion

Pranav’s Q2-FY27 figures show profit growth ahead of revenue growth, with profit after tax rising 52.8% to Rs 16.5 crore against a 7.3% increase in revenue to Rs 174.5 crore. Operating expenses increased 2.6%, compared with 7.3% for revenue, alongside a 371-basis-point expansion in EBITDA margin to 17.54% and a 282-basis-point increase in profit after tax margin to 9.46%.

The disclosed figures leave two operating movements to monitor: EBITDA margin was 27 basis points below Q1-FY27’s 17.81%, while Q2-FY27 collections of Rs 65.4 crore were below Rs 109 crore of pre-sales. H1-FY27 operating cash flow was positive at Rs 13.3 crore after FY26’s Rs 41.3 crore outflow, while the period also included Rs 298.7 crore of equity-share issuance proceeds.