Simmonds Marshall H1 profit rises 52% on commercial vehicles

Simmonds Marshall Limited reported H1 FY27 profit after tax (PAT) of Rs 8.50 crore, up 52.3% year on year, as revenue rose 25.0% to Rs 130.68 crore and commercial-vehicle sales gained 42.0%. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 33.4% to Rs 17.22 crore, while finance costs declined.

What drove Simmonds Marshall’s H1 FY27 revenue growth?

Simmonds Marshall’s H1 FY27 revenue growth came from increases across all four reported segments, led by commercial vehicles and industrial and others. Revenue from operations increased by Rs 26.13 crore to Rs 130.68 crore from Rs 104.55 crore in H1 FY26. Commercial-vehicle revenue added Rs 8.02 crore year on year, while industrial and other revenue increased by Rs 6.36 crore.

Two-wheelers remained Simmonds Marshall’s largest reported segment at Rs 64.36 crore in H1 FY27, after growing 19.4% from Rs 53.91 crore. That rate was below the company’s 25.0% revenue growth. Exports grew 12.1% to Rs 11.91 crore from Rs 10.62 crore, although the presentation said Q2 export revenue was 110% above Q1 FY27.

Why did Simmonds Marshall’s H1 FY27 profit outpace revenue?

Simmonds Marshall’s PAT outpaced revenue because EBITDA grew 33.4%, finance costs fell 20.6%, and margins increased. EBITDA reached Rs 17.22 crore in H1 FY27 from Rs 12.91 crore in H1 FY26. The EBITDA margin rose by 83 basis points to 13.2% from 12.3%; one basis point equals one-hundredth of a percentage point.

Finance costs declined to Rs 3.51 crore from Rs 4.42 crore, while depreciation and amortisation fell 6.7% to Rs 3.33 crore. Profit before tax rose 102.7% to Rs 11.31 crore from Rs 5.58 crore. PAT margin increased to 6.5% from 5.3%, and earnings per share, which was not annualised, rose to Rs 7.59 from Rs 4.98 based on 112 lakh shares.

What did Simmonds Marshall report for Q2 FY27?

Simmonds Marshall reported Q2 FY27 revenue from operations of Rs 69.71 crore, up 27.2% year on year and 14.3% quarter on quarter. EBITDA increased 27.4% from Q2 FY26 to Rs 9.06 crore, and its margin was 13.0%, 2 basis points above the prior-year quarter. Q2 PAT rose 35.3% year on year to Rs 4.83 crore, with PAT margin increasing 41 basis points to 6.9%.

Against Q1 FY27, Q2 PAT increased 31.6% from Rs 3.67 crore and revenue rose from Rs 60.97 crore. Profit before tax reached Rs 6.42 crore, up 79.8% from Rs 3.57 crore in Q2 FY26. Q2 other income was Rs 75 lakh, including a Rs 40 lakh profit on the sale of used assets; the presentation states that EBITDA excludes other income.

How did Simmonds Marshall’s debt and cash flow change in H1 FY27?

Simmonds Marshall reduced total borrowings by Rs 6.43 crore, or 23%, to Rs 21.49 crore at September 30, 2026 from Rs 27.92 crore at March 31, 2026. The debt-to-equity ratio moved to 0.33 times from 0.48 times over the same period. Net working-capital days declined to 72 in September 2026 from 83 in March 2026, although receivable days increased to 60 from 52.

Operating cash flow was Rs 15.59 crore in H1 FY27, following Rs 16.74 crore of cash profit and non-cash items, Rs 1.02 crore from working capital, and Rs 2.17 crore of tax paid. This funded net capital expenditure of Rs 2.97 crore, debt and finance-cost repayments of Rs 10.83 crore, and a dividend payment of Rs 90 lakh. Closing cash was Rs 92 lakh, compared with opening cash of Rs 3 lakh.

What capacity expansion is Simmonds Marshall pursuing?

Simmonds Marshall is raising annual cold-forming capacity to 15,000 metric tonnes from 12,000 metric tonnes through new forming and thread-rolling machines. Management described the additional 3,000 metric tonnes as headroom for original equipment manufacturer share gains and new export business. The presentation does not give a completion date, capital-expenditure amount, or revenue target for the project.

The expansion follows FY26 revenue from operations of Rs 222.84 crore and EBITDA of Rs 30.52 crore, compared with Rs 193.16 crore and Rs 24.41 crore in FY25. EBITDA margin increased to 13.7% in FY26 from 9.7% in FY24. Annualised return on capital employed was 33.9% in H1 FY27, while Q2 FY27 return on capital employed was 37.3%, compared with 30.9% in Q1 FY27.

Conclusion

Simmonds Marshall combined 25.0% H1 FY27 revenue growth with 52.3% PAT growth as EBITDA increased 33.4%, finance costs fell 20.6%, and PAT margin rose to 6.5%. Commercial vehicles grew 42.0% and industrial and others grew 30.4%, both ahead of the company-wide revenue rate, while two-wheelers remained the largest segment at Rs 64.36 crore.

The next results will show whether commercial-vehicle growth and the Q2 export increase of 110% over Q1 can continue. Investors can also track progress on the planned increase in cold-forming capacity from 12,000 to 15,000 metric tonnes and whether borrowings fall further after the Rs 6.43 crore reduction reported between March 31 and September 30, 2026.