Yasho Industries reported a strong Q2 FY27, with revenue climbing to Rs 347.92 crore and profit surging to Rs 33.68 crore. Despite this robust annual growth, rising freight and energy costs caused a sequential margin contraction, prompting management to focus on passing these expenses to customers in upcoming quarters.
Yasho Industries Q2 FY27 Results: Profit Surges 593% YoY
Revenue at Rs 347.92 crore; PAT stands at Rs 33.68 crore.
Reader Takeaway: Strong annual growth signals high demand, though supply chain-induced margin compression remains a key near-term headwind.
What just happened
Yasho Industries has posted a significant performance jump for Q2 FY27. Revenue rose 89.5% to Rs 347.92 crore from Rs 183.6 crore in the same quarter last year. Profit after tax (PAT) saw an exponential increase to Rs 33.68 crore, compared to Rs 4.86 crore in Q2 FY26. EBITDA mirrored this growth, reaching Rs 72.92 crore, up 118.2% from the prior year.
Why this matters
The results highlight the company's ability to scale top-line figures rapidly, especially with exports accounting for 70% of revenue. However, the company is battling significant operational headwinds. Freight costs doubled sequentially from Rs 10 crore to Rs 20 crore, and rising gas prices added Rs 1.8 crore to expenses. Because the company could not immediately pass these spot costs to existing customers, it saw a 300 basis point margin decline quarter-over-quarter.
Capex and Expansion
Management confirmed a Rs 250 crore capex plan for FY27. This will be financed by a mix of internal accruals (Rs 100 crore) and term loans (Rs 150 crore). The construction of two new manufacturing buildings at the Pakhajan site is underway, with commercialization projected between Q4 FY28 and Q1 FY29.
Risks to watch
Investors should monitor logistics volatility. Delivery delays are currently ranging between 30-60 days, up from the standard 25-30 days. Management's ability to successfully hike prices in Q3 to offset higher freight and energy costs is critical for stabilizing margins. Furthermore, the company's reliance on exports makes it sensitive to ongoing geopolitical and supply chain shifts.
What to track next
Watch for updates on the Rs 150 crore contract mentioned in previous filings, with trial production now slated for Q4 FY27. Additionally, watch for improvements in capacity utilization, which sat at 66% in the current quarter.