Mafatlal Industries Limited filed a regulatory disclosure pursuant to Regulation 30 of SEBI Listing Regulations, containing unaudited financial results for Q2 and H1 FY27 ended September 30, 2026.

Financial Performance (Standalone)

Quarterly Performance (Q2FY27 vs Q2FY26):

  • Revenue from operations: ₹794.1 Cr (vs ₹1,029.6 Cr), decline of 22.9% YoY
  • Other Income: ₹8.6 Cr (vs ₹10.8 Cr)
  • Other Gains (Net): ₹1.6 Cr (vs ₹0.2 Cr)
  • Total Income: ₹804.2 Cr (vs ₹1,040.6 Cr), decline of 22.7% YoY
  • EBITDA: ₹21.3 Cr (vs ₹35.8 Cr), decline of 40.5% YoY
  • Operating EBITDA*: ₹14.6 Cr (vs ₹29.5 Cr), decline of 50.3% YoY
  • Profit Before Tax (PBT): ₹14.8 Cr (vs ₹29.0 Cr), decline of 48.9% YoY

*Operating EBITDA excludes Dividend Income (₹3.1 Cr in Q2FY27 vs ₹5.1 Cr in Q2FY26), Profit on sale of Investments (net) (₹1.5 Cr), Profit on sale of Fixed assets (₹0.7 Cr vs ₹-0.1 Cr), and Rent income from investment property (₹1.4 Cr vs ₹1.2 Cr).

Half-Yearly Performance (H1FY27 vs H1FY26):

  • Revenue from operations: ₹1,736.5 Cr (vs ₹2,269.9 Cr), decline of 23.5% YoY
  • Other Income: ₹15.6 Cr (vs ₹15.2 Cr)
  • Other Gains (Net): ₹2.3 Cr (vs ₹0.3 Cr)
  • Total Income: ₹1,754.4 Cr (vs ₹2,285.4 Cr), decline of 23.2% YoY
  • EBITDA: ₹47.0 Cr (vs ₹84.1 Cr), decline of 44.1% YoY
  • Operating EBITDA*: ₹38.2 Cr (vs ₹76.5 Cr), decline of 50.1% YoY
  • Profit Before Tax (PBT): ₹34.4 Cr (vs ₹71.2 Cr), decline of 51.7% YoY

*Operating EBITDA for H1 excludes Dividend Income (₹3.8 Cr vs ₹5.1 Cr), Profit on sale of Investments (net) (₹1.5 Cr), Profit on sale of Fixed assets (₹0.7 Cr), and Rent income from investment property (₹2.9 Cr vs ₹2.4 Cr).

Business Performance Highlights

Core Business Segments Performance:

  • Textile & Related Products and Digital Infrastructure generated quarterly revenue of ₹540.0 Cr, registering 24.6% YoY growth
  • For H1FY27, core business revenue stood at ₹987.9 Cr, growth of 19.8% YoY

Segment-wise Breakdown:

  • Textile & Related Products: Revenue grew 12.4% YoY to ₹469.6 Cr in Q2FY27, driven by shift towards Uniforms Solution business including state-wide Telangana order across ~28,000 schools in 33 districts
  • Digital Infrastructure: Revenue grew 344.1% YoY to ₹70.3 Cr in Q2FY27 with EBIT of ₹9.7 Cr (up 201.7% YoY) and EBIT margin of 13.8%. Growth supported by institutional projects including 128 ICT labs in Odisha and other turnkey projects with operation and maintenance services of up to five years

Revenue Contribution:

  • Textile & Related Products and Digital Infrastructure contributed 68.0% of total revenue in Q2FY27
  • EBIT contribution from these segments was 82.6%
  • Overall margins were impacted by elevated costs associated with the nature of orders executed

Balance Sheet and Corporate Updates

Debt Position:

  • Gross debt stood at ₹83.2 Cr as of September 30, 2026 (Long-Term Debt: ₹32.2 Cr)
  • Compared to Gross debt of ₹60.8 Cr as of March 31, 2026 (Long-Term Debt: ₹33.1 Cr)
  • Ongoing order fulfilment impacted inventory, receivables and payables, reflected in short-term borrowings

Corporate Actions:

  • Board approved interim dividend of ₹1 per equity share for FY27
  • In accordance with Ind AS 12, the Company recognized deferred tax assets (net) charge of ₹3.8 Cr under tax expense during the quarter
  • Board approved acquisition of additional 20% stake in Pieflowtech Solutions, increasing shareholding to 80%, to strengthen Digital Infrastructure capabilities. Transaction expected to be completed by December 31, 2026

Order Book and Business Outlook

  • Total order book stood at approximately ₹575 Cr as of September 30, 2026
  • Breakdown: ₹462 Cr in Textiles & Related Products and ₹87 Cr in Digital Infrastructure
  • Management cited margin impact from elevated cost of power & fuel, sub-contracting and logistics in accordance with order nature
  • Company continues selective approach in Consumer Durables, prioritizing strategically aligned opportunities

Management Commentary

Mr. Priyavrata Mafatlal, MD and CEO, stated: "Our long-term strategy of value-focused growth, envisioned a few quarters ago, is beginning to reflect in our business mix. We remain focused on advancing opportunities aligned with our capabilities, strengthening existing customer relationships, and expanding our client base across business segments."