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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Amal Ltd.’s consolidated revenue from operations jumped to ₹131.23 crore in the quarter ended September 30, 2026 (Q2 FY27), up 142.99% from ₹54.00 crore a year earlier and 35.93% from ₹96.54 crore in the preceding quarter. The catch for investors is profitability: EBITDA was about ₹8.5 crore, nearly unchanged from ₹8.6 crore, so the EBITDA margin collapsed to 6.45%–6.46% from 15.93%.
Net profit appeared steadier at ₹6.16 crore, compared with ₹6.06 crore a year earlier, but a ₹1.70 crore Gujarat State GST incentive booked in the current quarter flatters the reported comparison. Excluding that one-time benefit, StockWatch estimated that adjusted PAT was roughly 19.4% lower year over year. Amal has also proposed expanding sulfur dioxide (SO2) capacity from 45 tonnes per day to 105 tonnes per day; that could support future growth, but it is an execution and payback question rather than evidence of a current margin recovery.
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What Amal’s Q2 numbers show
| Metric | Q2 FY27 (quarter ended September 30, 2026) | Year-ago quarter | Change |
|---|---|---|---|
| Consolidated revenue from operations | ₹131.23 crore | ₹54.00 crore | +142.99% year over year |
| Revenue versus preceding quarter | ₹131.23 crore | ₹96.54 crore in Q1 FY27 | +35.93% sequentially |
| EBITDA | Approximately ₹8.5 crore | Approximately ₹8.6 crore | Slight decline |
| EBITDA margin | 6.45%–6.46% | 15.93% | Down about 948 basis points |
| Consolidated PAT | ₹6.16 crore | ₹6.06 crore | +1.71% year over year |
The revenue figure is consolidated and covers the quarter ended September 30, 2026. Sahi rounded the result to about ₹130 crore of revenue and ₹6.2 crore of profit; the more precise ₹131.23 crore figure is reported by EquityBulls and StockWatch.
Why revenue grew while EBITDA margin contracted
Sales scaled much faster than operating profit
Amal added ₹77.23 crore of quarterly revenue year over year, yet EBITDA was approximately ₹0.1 crore lower. That means nearly all of the incremental sales failed to convert into operating earnings during the quarter. Revenue growth therefore describes a substantial increase in activity, not a proportional increase in economic value for shareholders.
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Material costs absorbed the expansion
StockWatch reported material consumption at 88.2% of revenue in Q2 FY27, versus 71.6% in the year-ago quarter. The 16.6-percentage-point increase in the material-cost mix is the clearest reported explanation for the margin squeeze. Even with much higher sales, the cost of inputs consumed a far larger share of each rupee of revenue, leaving EBITDA almost flat.
For investors, the key follow-up is whether this cost ratio normalizes as product mix, input prices, production utilization or customer pricing changes. A single quarter cannot establish that the lower margin is permanent, but it does show that scale alone has not yet produced operating leverage.
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Does the revenue growth translate into profit?
On the reported figures, only marginally. PAT rose 1.71% year over year to ₹6.16 crore, far below the 142.99% revenue increase. The reported PAT margin was approximately 4.69% (₹6.16 crore divided by ₹131.23 crore), versus about 11.22% a year earlier. This is a sharp deterioration in net-margin conversion even before considering the exceptional item.
The GST incentive changes the comparison
Amal booked a ₹1.70 crore Gujarat State GST incentive in Q2 FY27. Because that benefit is not described as recurring operating profit, comparing the reported ₹6.16 crore PAT directly with ₹6.06 crore in the prior-year quarter overstates the underlying stability of earnings. StockWatch’s adjustment indicates PAT would have been about 19.4% lower year over year without the incentive.
The practical distinction is important: revenue growth is recurring only to the extent that customers continue ordering at the reported scale, while the GST credit is a one-time or non-repeatable item for analytical purposes. Investors should track future quarters without that benefit before concluding that profit has kept pace.
What the proposed SO2 expansion means
Amal’s reported July 2026 capex proposal would increase SO2 capacity from 45 tonnes per day to 105 tonnes per day. That is an additional 60 tonnes per day and a capacity increase of about 133.3% relative to the existing level.
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Potential upside
- More installed capacity could allow Amal to serve larger or additional contracts if demand is available.
- Higher throughput may improve fixed-cost absorption once the new assets operate at sufficient utilization.
- The expansion could support revenue growth beyond the current quarter’s unusually high year-over-year base comparison.
Risks investors should monitor
- The proposal is forward-looking; it does not prove that construction, commissioning or commercial production has occurred.
- Returns depend on utilization, selling prices, input costs, environmental compliance and the final capital outlay.
- If material costs remain near 88.2% of revenue, additional volume could enlarge sales without restoring EBITDA margins.
- Construction delays, cost overruns or weaker SO2 demand could extend the payback period.
Capacity should therefore be treated as an option on future growth, not as current earnings. Evidence of value creation would come from commissioned capacity, customer offtake, improving material-cost ratios and sustained EBITDA growth in subsequent results.
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- Separate scale from profitability: recognize the exceptional 143% year-over-year and 35.93% sequential revenue growth, but judge the business on EBITDA and PAT conversion.
- Normalize exceptional items: remove the ₹1.70 crore GST incentive when estimating recurring earnings power.
- Track the cost bridge: watch whether material consumption falls from 88.2% of revenue toward the prior-year 71.6% level.
- Verify expansion milestones: look for approvals, spending, commissioning, utilization and customer demand before assigning value to the 105-tonnes-per-day target.
- Demand several quarters of evidence: one quarter of high revenue, especially with compressed margins, is not enough to establish a durable earnings trend.
Bottom line for shareholders
Amal’s Q2 FY27 result is a high-growth, low-conversion quarter. Revenue reached ₹131.23 crore, but EBITDA stayed around ₹8.5 crore and the margin fell to roughly 6.46% because materials consumed a much larger share of sales. Reported PAT was nearly flat only after a ₹1.70 crore Gujarat GST incentive; an adjusted comparison points to an underlying decline. The proposed SO2 expansion could create a larger revenue platform, but its investment case depends on execution, utilization and a demonstrable recovery in margins.
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