Srivasavi H1 FY27 revenue up 39% as PAT margin declines

Srivasavi Adhesive Tapes Limited reported H1 FY27 revenue of Rs 73.20 crore, up 39.2% year on year, while earnings before interest, tax, depreciation and amortisation margin rose 104 basis points to 9.6%. Profit after tax increased 26.3% to Rs 3.80 crore, but its margin declined 53 basis points to 5.2%.

How did Srivasavi perform in H1 FY27?

Srivasavi delivered higher revenue and operating profit in the six months ended September 30, 2026. Revenue from operations increased to Rs 73.20 crore from Rs 52.58 crore in H1 FY26, an addition of Rs 20.62 crore and growth of 39.2%. EBITDA rose faster, by 56.1%, to Rs 7.02 crore from Rs 4.50 crore. The presentation identifies Srivasavi as a manufacturer of industrial speciality adhesive tapes, foams, films, fabrics and die-cut solutions serving domestic and export markets.

The faster EBITDA increase lifted the EBITDA margin to 9.6% from 8.6% in H1 FY26. EBITDA, or earnings before interest, tax, depreciation and amortisation, measures profit before those four items. The 1.04-percentage-point increase equals 104 basis points, where one basis point is one-hundredth of a percentage point. H1 FY27 revenue also equalled about two-thirds of Srivasavi's FY26 full-year revenue, according to the company.

Why did Srivasavi's PAT margin fall despite EBITDA expansion?

Srivasavi's profit after tax, or PAT, grew more slowly than revenue and EBITDA, reducing its PAT margin to 5.2% in H1 FY27 from 5.7% a year earlier. PAT rose Rs 79.16 lakh to Rs 3.80 crore, a 26.3% increase, compared with revenue growth of 39.2% and EBITDA growth of 56.1%. The comparison shows that the rise in operating profit did not translate fully into a higher net-profit margin.

The supplied results do not itemise interest costs, depreciation, tax expense or other post-EBITDA charges, so they do not establish a specific cause for the 53-basis-point PAT-margin decline. They show that earnings per share increased to Rs 2.68 from Rs 2.13, a 25.8% rise. This means per-share earnings grew broadly in line with PAT but below the rates reported for revenue and EBITDA.

Management said the operating environment remained challenging amid an ongoing war and cited Srivasavi's exposure to crude-oil prices. The managing director did not quantify the effect of crude oil or the conflict on H1 FY27 costs, revenue or net profit. Management instead said the company remained focused on improving profitability as its new facilities scale up, which is a stated plan rather than a reported H1 outcome.

How did Srivasavi's balance sheet change by September 2026?

Srivasavi's net worth increased 8.1% to Rs 50.52 crore at September 30, 2026, from Rs 46.71 crore at March 31, 2026. Book value per share rose to Rs 35.64 from Rs 32.96 over the same period. Total assets rose 21.7% to Rs 103.26 crore from Rs 84.86 crore, a faster percentage increase than net worth during the half-year.

The largest reported balance-sheet change was in net property, plant and equipment, or PP&E, which increased 68.2% to Rs 32.91 crore from Rs 19.56 crore. Srivasavi attributed this rise to the capitalisation of new capacity. Capitalisation means expenditure on capacity was recorded as a fixed asset rather than solely as an expense in the period, although the presentation does not provide the cost, commissioning date or output capacity of the additions.

The Rs 13.35 crore increase in net PP&E was larger than the Rs 3.81 crore increase in net worth and formed a substantial part of the Rs 18.40 crore rise in total assets. The presentation does not disclose debt, cash, working capital, capital expenditure, depreciation or asset financing for H1 FY27. Those omissions limit conclusions about how the new fixed assets were funded or how soon they may contribute to reported profitability.

What is Srivasavi expecting for FY27?

Srivasavi expects FY27 sales to be considerably higher than FY26, based on H1 FY27 revenue of Rs 73.20 crore and management's view that added capacity and a growing presence across industries position the company for the rest of the year. This is management's expectation, not formal numerical guidance. The presentation does not disclose an FY27 revenue target, EBITDA target, margin target or capital-expenditure target.

Management linked its outlook to newly added capacity and the scaling up of new facilities. It said that profitability improvement remains a focus as those facilities scale, while also acknowledging the challenging environment and the company's crude-oil exposure. Since EBITDA margin reached 9.6% but PAT margin fell to 5.2% in H1 FY27, subsequent disclosures will show whether operating expansion translates into a higher net-profit margin.

Srivasavi's H1 FY27 release was dated October 30, 2026 and covers the half-year ended September 30, 2026. The company reported unaudited consolidated results. Its stated comparison period is H1 FY26, which provides the basis for the reported 39.2% revenue increase, 56.1% EBITDA increase and 26.3% PAT increase.

Conclusion

Srivasavi combined a Rs 20.62 crore increase in H1 revenue with an EBITDA-margin improvement from 8.6% to 9.6%, meaning operating profit grew faster than sales. However, PAT margin moved in the opposite direction, from 5.7% to 5.2%, while net PP&E rose 68.2% to Rs 32.91 crore following the capitalisation of new capacity.

The next result to watch is whether FY27 sales become considerably higher than FY26 as management expects and whether new facilities scale as planned. Management has also identified profitability improvement as a focus, while crude-oil exposure and the challenging operating environment remain unresolved factors in the October 2026 release.