Xpro Q2 revenue up 47% as expanded capacity supports volumes

Xpro India Limited reported standalone Q2 FY27 revenue of Rs 176.7 crore, up 47.4% year on year, as sales volume rose 18% to 9,524 metric tonnes and expanded capacity made a growing contribution. Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding other income, rose 53.5% to Rs 16.4 crore.

How did Xpro perform in Q2 FY27?

Xpro delivered higher standalone revenue, EBITDA and profit after tax (PAT) in Q2 FY27 than in the prior-year quarter. Revenue rose by Rs 56.8 crore from Rs 119.9 crore in Q2 FY26 to Rs 176.7 crore, and was 1.3% above Rs 174.4 crore in Q1 FY27. EBITDA increased from Rs 10.7 crore a year earlier to Rs 16.4 crore, while PAT rose from Rs 5.9 crore to Rs 9.5 crore.

Operating profit grew faster than revenue year on year, while reported PAT declined sequentially. EBITDA was 7.1% above Rs 15.3 crore in Q1 FY27, lifting EBITDA margin to 9.3% from 8.8% in the preceding quarter and 8.9% in Q2 FY26. PAT was 2.7% below Rs 9.8 crore in Q1 FY27, and PAT margin was 5.4%, compared with 5.6% in the preceding quarter.

What drove Xpro's Q2 FY27 revenue growth?

Xpro attributed Q2 FY27 growth to higher volumes, a better product mix and the growing contribution from expanded capacity. Sales volume increased 18% year on year to 9,524 metric tonnes, while revenue increased 47.4% to Rs 176.7 crore. The presentation does not quantify how much of the revenue increase came separately from volume, mix, pricing or the new capacity.

The dielectric films business strengthened its position in domestic and export markets, according to management. The new dielectric film line continued its ramp-up, and ultra-thin dielectric films had been developed and were in customer validation. Management identified electric vehicles, power electronics, grid modernisation and renewable energy as applications for these products, without disclosing sales from the line, customer numbers or a validation completion date.

Sheets and liner volumes rose 18%, which management said reflected market-share gains supported by customer relationships. Cast Films continued to face competitive pressure, and Xpro said it is focusing on new product development on its revamped line. The segment picture therefore differs: dielectric films are being supported by a ramping new line and a validation pipeline, whereas Cast Films remains subject to competition.

How did Xpro's margins and costs change in Q2 FY27?

Xpro's Q2 FY27 EBITDA margin increased year on year, but gross profit margin was below both the prior-year and preceding-quarter levels. Gross profit increased 33.7% to Rs 48.5 crore from Rs 36.3 crore in Q2 FY26, while gross profit margin declined by 2.8 percentage points to 27.5%. The margin was also below the 28.0% reported in Q1 FY27, despite revenue rising by Rs 2.3 crore sequentially.

Cost of material consumed increased to Rs 121.2 crore from Rs 83.1 crore a year earlier. Employee expenses rose to Rs 9.2 crore from Rs 8.5 crore, other expenses increased to Rs 23.0 crore from Rs 17.1 crore, and the change in inventories was Rs 6.9 crore versus Rs 0.5 crore. EBITDA margin nevertheless rose 0.4 percentage points year on year to 9.3%.

Depreciation increased to Rs 5.0 crore from Rs 2.8 crore and finance cost rose to Rs 2.2 crore from Rs 0.9 crore. Profit before tax rose 26.8% to Rs 14.1 crore, slower than EBITDA growth of 53.5%. The net foreign-exchange adjustment was Rs 1.3 crore in Q2 FY27, compared with Rs 3.5 crore in Q2 FY26, so the reported PAT comparison includes a smaller adjustment than in the prior-year quarter.

What does Xpro's H1 FY27 performance show?

Xpro's H1 FY27 results show 32.6% revenue growth and 89.9% PAT growth, alongside a lower EBITDA margin than a year earlier. Revenue was Rs 351.1 crore versus Rs 264.8 crore in H1 FY26, while sales volume increased 9.9% to 19,234 metric tonnes. EBITDA rose 26.7% to Rs 31.7 crore and PAT increased to Rs 19.3 crore from Rs 10.2 crore.

The half-year margin comparison differs from the quarterly trend. H1 FY27 EBITDA margin was 9.0%, down from 9.5% in H1 FY26, while gross profit margin declined to 27.7% from 28.9%. PAT margin rose to 5.5% from 3.8%, with a Rs 0.3 crore net foreign-exchange adjustment in H1 FY27 compared with Rs 11.0 crore in H1 FY26.

Xpro reported standalone net worth of Rs 729.4 crore in H1 FY27, compared with Rs 715.5 crore in FY26. Return on capital employed was 7.2% in H1 FY27 versus 5.7% in FY26, while return on equity was 5.3% versus 4.6%. The company reported net debt-to-equity of negative 0.1 times and cash flow from operations of Rs 11.2 crore for H1 FY27.

Working-capital movements reduced cash conversion during the half year. The standalone cash-flow statement reports operating profit before working-capital changes of Rs 33.1 crore for the period labelled Sept-26, followed by a Rs 17.7 crore working-capital outflow. Net cash from operating activities was Rs 11.2 crore, up from Rs 10.1 crore in the period labelled Sept-25, while net cash used in investing activities declined to Rs 4.4 crore from Rs 88.7 crore.

Conclusion

Xpro's Q2 FY27 figures indicate that higher volumes and the contribution from expanded capacity supported revenue and EBITDA growth. Sales volume of 9,524 metric tonnes underpinned a 47.4% revenue increase and a 53.5% EBITDA increase, but gross profit margin fell to 27.5% even as EBITDA margin rose to 9.3%. Cast Films also remained under competitive pressure.

The next disclosed operating markers are management's plans to ramp up new dielectric-film capacity, broaden customer approvals for ultra-thin films and improve volumes and margins. Management also cited input-cost and supply-chain volatility as matters requiring attention, while the presentation gives no dated capacity target, customer-validation completion date or quantified Cast Films recovery plan.