TTK Prestige (517506) Q2 26/27 earnings summary

Executive summary

• Q2 standalone sales were ₹959.30 crore (+21.9%); consolidated turnover was ₹1,008.96 crore (+21.0%). Domestic sales grew 23.4%, while exports fell to ₹14.8 crore from ₹21.3 crore.

• Operating EBITDA before exceptional items rose 70.9% to ₹171.7 crore; standalone PAT was ₹108.02 crore and consolidated PAT was ₹104.44 crore after exceptional items.

• H1 standalone sales increased 27.1% to ₹1,730.7 crore and operating EBITDA to ₹260.5 crore; consolidated turnover rose 26.3% to ₹1,822.8 crore.

• Quality, distribution, innovation and product development are supporting growth and market-share gains; input-cost inflation remains a concern.

Financial highlights

• Q2 PBT before exceptional items was ₹163.14 crore standalone and ₹154.91 crore consolidated; post-exception PBT was ₹147.61 crore and ₹152.91 crore, respectively.

• Standalone Q2 operating EBITDA margin was 18.0% before strategy expenses and 17.9% after the ₹0.7 crore provision, versus 15.0% in the prior year after provision.

• H1 standalone operating EBITDA margin was 15.7% before strategy expenses and 15.1% after the ₹13.1 crore provision, versus 13.7% and 11.1% in the prior year.

• Q2 strategy-related expenses were ₹0.70 crore versus ₹17.89 crore a year earlier; cost-optimization initiatives also reduced expenses.

• Inventory increased in absolute value to support anticipated demand, while inventory days remained unchanged.

Outlook and guidance

• FY27 growth is expected to be supported by a strong product pipeline, strategic investments, resilient domestic demand and transformation initiatives; October demand trends were encouraging.

• Further cost increases may be passed through in coming quarters, subject to market conditions and demand impact; near-term margin guidance was withheld amid cost volatility.

• Steady-state EBITDA potential remains 13%-14%, subject to a more stable cost environment.

• October trading was described as good, with some festive-season sales expected to flow into Q3; induction is expected to sustain high-teens category growth in a stabilized environment.