KSH International (KSHINTL) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose 85.33% YoY to Rs 13,196.54 million; EBITDA increased 94.79% to Rs 898 million and PAT grew 62.16% to Rs 479.53 million.

• H1 FY27 revenue reached Rs 24,838.89 million, up 95.45% YoY; EBITDA rose 89.93% to Rs 1,641 million and PAT grew 72.51% to Rs 901.73 million.

• Growth reflected higher volumes, exports, utilization and product mix; H1 operating cash flow was Rs 425.71 million.

• Supa Phase I and II expansion was 96% complete, providing 57,845 MT of available capacity for H2 FY27; Phase III is planned to take total capacity to 72,200 MT.

• Statutory auditors issued an unmodified limited review conclusion on the unaudited results.

Financial highlights

• Q2 revenue from operations was Rs 13,196.54 million versus Rs 7,121.48 million a year earlier; H1 revenue was Rs 24,838.89 million versus Rs 12,708.60 million.

• Q2 profit before tax was Rs 638.57 million versus Rs 365.35 million YoY; H1 profit before tax was Rs 1,207.52 million versus Rs 700.67 million.

• Q2 net profit was Rs 479.53 million versus Rs 295.91 million YoY; H1 net profit was Rs 901.73 million versus Rs 522.71 million.

• Q2 sales volume rose 25.65% YoY to 8,842 MT; H1 volume increased 27.83% to 16,812 MT.

• Q2 diluted EPS was Rs 7.07 versus Rs 5.20 YoY; H1 diluted EPS was Rs 13.29 versus Rs 9.20.

Outlook and guidance

• FY27 volume growth of 25%-26% remains expected, with H2 volumes expected to exceed H1 as new capacity comes online.

• Phase III at Supa is planned to lift total capacity to 72,200 MT per annum by Q1 FY2029, with investment capped at Rs 1,850 million.

• Phase III is intended to increase specialized-wire capacity, improve product mix, support export penetration and address larger orders and new OEM opportunities.

• Long-term sustainable EBITDA is estimated at Rs 85,000 per MT at optimum utilization; quarterly results may vary with mix, exports and currency.

• Export share is targeted to return to ~40% of revenue over the next 1-2 years; Phase III completion is expected to increase the specialized-wire mix.