Shigan H1 FY27 PAT rose 52% as EBITDA margin declined sequentially

In H1 FY27, Shigan Group's consolidated PAT rose 52% year on year to Rs 3.7 crore, while EBITDA margin was 9.4%, 181 basis points below H2 FY26. Revenue increased 17% to Rs 128.7 crore, but both EBITDA and PAT were lower than in the immediately preceding half.

How did Shigan perform in H1 FY27?

Shigan reported consolidated revenue of Rs 128.7 crore in H1 FY27, up 17% from Rs 109.6 crore in H1 FY26 and 18% above Rs 108.8 crore in H2 FY26. Total income rose 18% year on year to Rs 129.8 crore, including Rs 1.1 crore of other income, compared with Rs 0.3 crore a year earlier.

Consolidated EBITDA, or earnings before interest, tax, depreciation and amortisation, including other income, increased 35% year on year to Rs 12.2 crore. PAT, or profit after tax, rose to Rs 3.7 crore from Rs 2.4 crore. The presentation also reported consolidated earnings per share of Rs 1.82 in H1 FY27, compared with Rs 1.20 in H1 FY26.

The year-on-year comparison shows higher earnings growth than sales growth: PAT increased 52%, against the 17% revenue rise, while EBITDA margin improved by 119 basis points from 8.2% to 9.4%. The half-on-half comparison was different. H1 FY27 revenue exceeded H2 FY26 revenue, but EBITDA fell 2% from Rs 12.4 crore and PAT fell 14% from Rs 4.3 crore.

Why did Shigan's EBITDA margin fall from H2 FY26?

Shigan's EBITDA margin declined sequentially as total expenses increased 19% from H2 FY26 while total income increased 17%, and other income fell 55%. Total expenses were Rs 117.6 crore in H1 FY27 versus Rs 98.8 crore in H2 FY26, while total income was Rs 129.8 crore versus Rs 111.3 crore.

Cost of goods sold rose 20% half on half to Rs 104.5 crore, compared with an 18% rise in revenue to Rs 128.7 crore. Other expenses increased 27% to Rs 5.8 crore from Rs 4.5 crore. These changes coincided with EBITDA decreasing by Rs 0.2 crore to Rs 12.2 crore and the margin falling from 11.2% to 9.4%.

Below EBITDA, depreciation increased 32% from H2 FY26 to Rs 3.2 crore, and interest expense increased 4% to Rs 3.97 crore. Profit before tax consequently declined 19% to Rs 5.0 crore from Rs 6.2 crore. Tax expense was Rs 1.34 crore, 30% below the preceding half, but PAT still declined to Rs 3.7 crore.

Which business lines drove Shigan's H1 FY27 revenue?

Shigan's Electronics business recorded the fastest growth, while Alternative Fuel Systems remained the largest revenue contributor. Electronics revenue rose 224% year on year to Rs 13.2 crore in H1 FY27, compared with Rs 4.1 crore in H1 FY26; Alternative Fuel Systems rose 8% to Rs 84.2 crore.

Alternative Fuel Systems accounted for 65% of H1 FY27 revenue, down from 71% in H1 FY26, despite its Rs 6.3 crore revenue increase. Management attributed the growth in this segment to new compressed natural gas passenger-vehicle launches by original equipment manufacturers, or OEMs, and higher passenger-vehicle volumes. Fire Protection Systems contributed 25% of revenue in both periods, with H1 FY27 revenue of Rs 31.3 crore linked to demand for fire-protection solutions in electric buses.

Electronics increased its revenue share from 4% in H1 FY26 to 10% in H1 FY27. Management cited battery-management systems, direct-current to alternating-current converters for 55-tonne truck OEMs, and electronic manufacturing services for L3 aftermarket battery-management systems as contributors. The change in mix means the 224% Electronics growth was much faster than the 8% growth in the largest Alternative Fuel Systems business.

What is Shigan's stated growth plan after H1 FY27?

Shigan's management has outlined a target of about 20% to 25% compound annual revenue growth, supported by alternate-fuel and electric-vehicle systems, rather than providing a specific FY27 revenue forecast. The presentation describes its approach as integrating globally benchmarked technologies with modular, cost-efficient designs suited to Indian duty cycles and volumes.

Management also says it aims to build niche, high-dependency products embedded in OEM platforms and to create multi-decade partnerships through product performance and technology integration. Its stated outlook includes diversified but synergistic verticals serving automotive OEMs and the aftermarket, as well as consistent order visibility and a robust forward order book across business lines. The presentation does not disclose an order-book value or a timetable for converting that visibility into revenue.

Conclusion

Shigan's H1 FY27 figures show a year-on-year expansion in scale and earnings, with revenue rising to Rs 128.7 crore, EBITDA reaching Rs 12.2 crore and PAT reaching Rs 3.7 crore. However, the sequential comparison shows that the 9.4% EBITDA margin remained below H2 FY26's 11.2%, as expenses grew faster than income and other income declined.

The next results will indicate whether Shigan can progress toward management's stated 20% to 25% compound annual revenue-growth objective while restoring margins from the H1 FY27 level. Investors can also watch whether Electronics, which grew 224% to Rs 13.2 crore, continues to increase its revenue share and whether the undisclosed forward order book translates into reported sales.