Revenue from Operations stood at ₹1,143 million in Q2 FY27, representing a 28% year-on-year (YoY) increase from ₹892 million in Q2 FY26 and a 16% quarter-on-quarter (QoQ) increase from ₹987 million in Q1 FY27. The growth was driven by higher volumes as new plants continue to ramp up.
EBITDA was ₹407 million, up 21% YoY from ₹337 million and 5% QoQ from ₹387 million. The EBITDA Margin was 36%, compared to 38% in Q2 FY26 and 39% in Q1 FY27. The margin contraction was attributed to higher transport costs and salary hike arrears. The company noted that talks are underway to pass freight costs on to customers.
Profit Before Tax (PBT) was ₹479 million, up 20% YoY and 3% QoQ.
Profit After Tax (PAT) was ₹356 million, down 3% YoY from ₹367 million but up 2% QoQ from ₹350 million. The YoY decline was due to a ₹45 million deferred tax credit included in Q2 FY26. The PAT Margin was 27%.
Other Income was ₹171 million.
Key expense items included:
Power Expenses: ₹257 million (up 40% YoY, 17% QoQ)
Employee Costs: ₹86 million (up 32% YoY, 18% QoQ)
Other Expenses: ₹259 million (up 17% YoY, 29% QoQ)
Finance Costs: ₹25 million
Depreciation: ₹69 million
Impairment Loss on financial assets: ₹5 million
Tax: ₹123 million
Operational and Business Highlights
Gases Division Revenue (core gases, related products & services) increased 27% YoY and 15% QoQ to ₹1,121 million in Q2 FY27. The segment margin improved to 39% in Q2 FY27 from 38% in Q1 FY27.
A new onsite plant in East India was commissioned during Q2 FY27 and is expected to see full revenues in Q3 FY27.
New merchant plants in North and West/Central India are planned to come online in FY28.
The company won a new order worth ₹4,807 million from Bharat Heavy Electricals Limited (BHEL) in September 2026. The order is for the supply and erection of a 1,200 TPD cryogenic Air Separation Unit (ASU) on a turnkey basis. This project is part of the Coal Gasification Mission, where BHEL is setting up India's first commercial-scale coal-to-ammonium nitrate plant in Jharsuguda, Odisha.
The work order awarded by NMDC Steel Limited (NSL) for the operation and maintenance of two 1,250 TPD ASU plants at Nagarnar is excluded from the company's total capacity calculation.
Balance Sheet & Ratios (as of September 30, 2026)
Cash & Cash Equivalents: ₹4,240 million
Return on Capital Employed (ROCE) (annualized): 17%
Capex Guidance: ₹2,500 million for FY 2027 and ₹2,000 million for FY 2028.
Management and Governance
The presentation included details of the experienced management team, including:
Padam Kumar Agarwala, Chairman & Managing Director (40+ years experience)
Varun Agarwal, Joint Managing Director (15+ years experience, formerly of Lehman Brothers)
K. Srinivas Prasad, Chief Financial Officer
Aditya Keshri, Company Secretary & Compliance Officer (Membership No.: A73390)
The document was digitally signed and submitted by Aditya Keshri, Company Secretary and Compliance Officer.
Industry Overview
The Indian industrial gases market is expected to grow at a CAGR of ~7.5% from 2024 to 2028.
Key growth drivers include rising demand from end-use sectors: Chemicals ($270 Bn), Steel ($133 Bn), Healthcare ($105 Bn), and Pharma ($59 Bn).
The market is dominated by multinational organizations alongside large domestic players.
Specific growth is anticipated in the Oxygen, Argon, and Nitrogen markets.
Forward-Looking Statements
The presentation contained a safe harbour statement noting that it includes forward-looking statements subject to risks, uncertainties, and assumptions, including fluctuations in earnings, market growth, intense competition, pricing environment, consumption levels, and changes in regulatory environments and input costs. The company does not undertake to update these statements.
