LEAP India has announced the acquisition of Vimprotech and TIPS for Rs 142 crore to drive backward integration and market expansion. The company also reported strong Q2 FY27 results, with PAT growing 62% YoY to Rs 17.8 crore and total income rising 23% to Rs 215.9 crore.
LEAP India Q2 PAT Climbs 62% as Company Announces Rs 142 Crore Acquisitions
Q2 PAT at Rs 17.8 crore vs Q2 revenue of Rs 215.9 crore.
Reader Takeaway: Strong operational growth and strategic manufacturing integration are driving performance, though high working capital remains a challenge.
What just happened
LEAP India Limited has signed a definitive agreement to acquire 100% of Vimprotech and TIPS for an equity value of Rs 142 crore via a slump sale. Simultaneously, the company released its Q2 FY27 results, showing significant profitability growth. India Ratings has also upgraded the company’s credit rating to A+.
Why this matters
The acquisition of Vimprotech provides LEAP India with critical backward integration into plastic manufacturing, allowing the company to design and produce its own assets rather than relying on external vendors. The acquisition of TIPS expands its container pooling presence, particularly in the automotive sector in South India. These moves are aimed at enhancing supply chain control and margins.
Financial performance
In Q2 FY27, LEAP India reported a total income of Rs 215.9 crore, a 23% YoY increase. Net Profit (PAT) surged 62% to Rs 17.8 crore. For the first half of the fiscal year (H1 FY27), the company achieved a total income of Rs 429.4 crore with a PAT of Rs 42.5 crore, reflecting 42% growth compared to the previous year. Asset base grew to 15.5 million units.
Risks to watch
Investors should monitor the company’s Days Sales Outstanding (DSO), which stood at 122 days at the end of the quarter. Management has set a goal to bring this below 90 days by the end of FY27. Additionally, exposure to sectors like textiles and plastics remains sensitive to raw material price volatility.
What to track next
Management has provided a revenue guidance of Rs 918–920 crore for FY27 with an expected PAT growth of 60% to 80%. The company is also scaling operations in Saudi Arabia and the UAE, which will be a key growth vector to watch alongside the ongoing Rs 450 crore planned capex for the year.