Financial Performance Highlights

Consolidated Profit & Loss (₹ Mn)

Q2FY27 Performance:

  • Revenue from Operations: ₹2,087 Mn (up 27% YoY from ₹1,642 Mn in Q2FY26)
  • Gross Profit: ₹817 Mn (up 42% YoY)
  • Gross Margin: 39.2% (vs 35.0% in Q2FY26)
  • EBITDA: ₹279 Mn (up 52% YoY)
  • EBITDA Margin: 13.4% (vs 11.2% in Q2FY26)
  • Profit Before Tax: ₹191 Mn (up 41% YoY)
  • Profit After Tax: ₹129 Mn (up 18% YoY)
  • PAT Margin: 6.2% (vs 6.6% in Q2FY26)
  • Diluted EPS: ₹1.54

Quarter-over-Quarter Comparison (Q2FY27 vs Q1FY27):

  • Revenue growth: 23% QoQ (from ₹1,693 Mn)
  • Gross Profit growth: 16% QoQ (from ₹707 Mn)
  • EBITDA growth: 22% QoQ (from ₹229 Mn)
  • PAT growth: 16% QoQ (from ₹110 Mn)

H1FY27 Performance:

  • Revenue from Operations: ₹3,780 Mn (up 33% YoY from ₹2,844 Mn in H1FY26)
  • Gross Profit: ₹1,524 Mn (up 50% YoY)
  • Gross Margin: 40.3% (vs 35.7% in H1FY26)
  • EBITDA: ₹508 Mn (up 71% YoY)
  • EBITDA Margin: 13.4% (vs 10.4% in H1FY26)
  • Profit Before Tax: ₹360 Mn (up 103% YoY)
  • Profit After Tax: ₹239 Mn (up 80% YoY)
  • PAT Margin: 6.3% (vs 4.7% in H1FY26)
  • Diluted EPS: ₹2.94

Expense Breakdown (H1FY27):

  • Raw Material Expenses: ₹2,256 Mn
  • Employee Expenses: ₹591 Mn
  • Other Operating Expenses: ₹424 Mn
  • Depreciation: ₹157 Mn
  • Finance Cost: ₹39 Mn
  • Other Income: ₹47 Mn
  • Tax expenses: ₹121 Mn

Consolidated Balance Sheet (₹ Mn)

Liabilities as of September 2026:

  • Total Equity: ₹6,342 Mn (vs ₹6,094 Mn in March 2026)
  • Share Capital: ₹773 Mn (unchanged)
  • Other Equity: ₹5,569 Mn (vs ₹5,321 Mn)
  • Non-Current Liabilities: ₹243 Mn (vs ₹263 Mn)
  • Borrowings: ₹16 Mn (vs ₹13 Mn)
  • Lease Liabilities: ₹214 Mn (vs ₹236 Mn)
  • Provisions: ₹13 Mn (vs ₹14 Mn)
  • Current Liabilities: ₹1,689 Mn (vs ₹1,315 Mn)
  • Borrowings: ₹609 Mn (vs ₹399 Mn)
  • Trade Payables: ₹546 Mn (vs ₹450 Mn)
  • Other Financial Liabilities: ₹245 Mn (vs ₹171 Mn)
  • Other Current Liabilities: ₹288 Mn (vs ₹293 Mn)
  • Provisions: ₹1 Mn (unchanged)
  • Total Liabilities: ₹8,274 Mn (vs ₹7,672 Mn)

Assets as of September 2026:

  • Non-Current Assets: ₹3,485 Mn (vs ₹3,534 Mn)
  • Plant, Property & Equipment: ₹1,767 Mn (vs ₹1,482 Mn)
  • Capital WIP: ₹825 Mn (vs ₹956 Mn)
  • Goodwill & Intangibles: ₹60 Mn (unchanged)
  • Right of use of Assets: ₹485 Mn (vs ₹498 Mn)
  • Financial Assets: ₹35 Mn (vs ₹47 Mn)
  • Other Non-Current Assets: ₹312 Mn (vs ₹491 Mn)
  • Current Assets: ₹4,789 Mn (vs ₹4,137 Mn)
  • Inventories: ₹2,303 Mn (vs ₹2,011 Mn)
  • Debtors: ₹1,665 Mn (vs ₹1,330 Mn)
  • Cash and Bank Equivalents: ₹408 Mn (vs ₹576 Mn)
  • Other Financial Assets: ₹7 Mn (unchanged)
  • Other Current Assets: ₹406 Mn (vs ₹213 Mn)
  • Total Assets: ₹8,274 Mn (vs ₹7,672 Mn)

Business Strategy and Operational Updates

Product Diversification

The company is transitioning from core Home lighting to a diversified portfolio including:

  • Home & commercial lighting
  • Hearables & wearables
  • Energy solutions
  • Electronic components
  • Automotive lighting

Manufacturing Expansion

  • Block I (~2 Lac Sq. Ft.) commercialized in May 2024
  • Block II (~2 Lac Sq. Ft.) partially commercialized in Q2FY27
  • Block III (~1 Lac Sq. Ft.) construction progressing as planned
  • Total manufacturing capacity: ~5 lakh sq. ft. across 5 facilities
  • New facility includes solar rooftop panel of 200 KVA for captive consumption

Global Expansion

  • Expanded to 20+ countries
  • Revenue from outside India grew 53% YoY to ₹1,101 Mn in FY26
  • International contribution increased to 18% of revenue in FY26 (vs 15% in FY25)

Subsidiary Update

Royalux FZCO (UAE), a step-down subsidiary, entered into an exclusivity undertaking with Danube Home LLC, Dubai to undertake:

  • Fit-out services
  • Installation services
  • Landscaping services
  • Allied project services

Business Segment Performance

  • Other Business revenue: ₹2,894 Mn in H1FY27 (up 47% YoY)
  • Other Business 3-Year CAGR: approximately 54% (FY23-FY26)
  • Reduced reliance on traditional Home Lighting ODM business

Market Context

LED Lighting Market:

  • Valued at USD 12.5 Bn in 2026, expected to reach USD 18.8 Bn in 2031 (~8.4% CAGR)
  • Key tailwinds: Smart city expansion, product mix shift, rising domestic value addition

Electronic Manufacturing Services Market:

  • Valued at USD 33 Bn (2024), expected to reach USD 155 Bn (2030), ~30% CAGR
  • Structural shift from Low-Mix, High-Volume to High-Mix, Low-Volume manufacturing
  • Key tailwinds: China+1 supply chain diversification, PLI-led manufacturing push

Solar PV Market:

  • Valued at USD 253 Bn in 2023, projected to reach USD 436.36 Bn by 2032
  • Installed capacity target: ~6,699 GW by 2030 (Net Zero Emissions)
  • Key tailwinds: Global energy transition, cost competitiveness vs fossil fuels