Sugs Lloyd Reports Strong Q2 FY27 Growth

Revenue: Rs 134.9 crore (up 112% YoY)
PAT: Rs 12.5 crore (up 108% YoY)

Reader Takeaway: Strong revenue growth and order wins drive performance; rising debt and material costs remain key monitoring points.

What just happened

Sugs Lloyd announced significant growth for the second quarter of FY27, with revenue touching Rs 134.9 crore, a 112% increase year-on-year. The bottom line followed suit, with Profit After Tax (PAT) reaching Rs 12.5 crore, up 108%. The company’s half-yearly performance mirrors this trend, with H1 revenue at Rs 213.3 crore.

Why this matters

The company’s successful execution of deferred billing, particularly in the Patna project, provided a major tailwind for Q2. Notably, Sugs Lloyd is successfully diversifying its business beyond Bihar, bringing down its concentration from over 82% to 55.2% following major order wins in Punjab and Odisha.

The backstory

Sugs Lloyd has been aggressively expanding its order book, which now stands at Rs 1,067 crore as of September 30, 2026. The firm recently bagged seven new orders worth Rs 395 crore, including mandates from Tata Power and Punjab State Power Corporation. It is also pushing into new technology areas like transmission, SCADA, and BESS.

Risks to watch

Investors should monitor the rising debt levels, with gross debt increasing by Rs 94 crore in H1 to Rs 163.1 crore. Additionally, EBITDA margins saw a slight compression to 14.1% from 15.7% in the previous year, partly due to material costs rising to 65.1% of revenue.

What to track next

Management has reiterated a revenue target of Rs 1,000 crore for FY28. The upcoming launch of Fault Passage Indicators in Q3 FY27 and the steady conversion of its existing order book into revenue will be critical metrics to track in the coming quarters.