Energy-Mission (EMMIL) Q2 FY27 Profit Falls 30% Despite Higher Revenue as Costs Bite
Energy-Mission Machineries posted a 6.6% rise in Q2 FY27 revenue, but net profit fell 30% year-on-year as expenses climbed and margins contracted sharply.
Energy-Mission Machineries reported a 6.6% year-on-year revenue increase to ₹80.86 crore for Q2 FY27. However, net profit declined 30% to ₹4.49 crore, with the net profit margin contracting 300 basis points due to rising costs.
For a capital goods maker riding an industrial expansion wave, the second quarter should have been about converting capacity into profit. Energy-Mission Machineries saw its revenue rise, but the bottom line told a different story.
Revenue for the September 2026 quarter grew 6.6% year-on-year to ₹80.86 crore. Net profit, however, fell 30% to ₹4.49 crore. The net profit margin compressed to 5.5%, down 300 basis points from the same quarter last year.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|
| Revenue (₹ Cr) | 80.86YoY +6.6% | 75.85 |
| Profit (₹ Cr) | 4.49YoY -30% | 6.42 |
| Net Profit Margin (%) | 5.5YoY -35% | 8.5 |
The squeeze from higher costs
Total expenses rose over 10% year-on-year, outpacing revenue growth. A sharp 87% drop in other income, as per the payload, also removed a cushion. Higher depreciation and interest costs, up 21% and 17% respectively, point to the financial impact of recent capital expenditure.
Management had previously expanded capacity from 900 to 1,500 machines annually, reports Arthneeti. A new backward integration facility also became operational in June 2026, aimed at cutting future job-work costs.
Demand visibility versus margin pressure
The underlying demand story appears intact. An investor presentation in June 2026, cited by Newboard, noted a ₹47.23 crore order book and said orders in the first two months of FY27 were 16% higher year-on-year. The industry is also growing at a 12-15% CAGR, according to Mordor Intelligence.
The challenge is that these benefits are yet to fully offset the current cost inflation and the drag from new asset depreciation. The company's three-year target, as per Newboard, is an 8% profit margin, but the Q2 print of 5.5% shows a significant gap.
Key Points
- Revenue grew 6.6% YoY to ₹80.86 crore, but net profit declined 30% to ₹4.49 crore.
- Net profit margin contracted 300 basis points YoY to 5.5%, pressured by a >10% rise in total expenses and lower other income.
- Higher depreciation and interest costs reflect investments in expanded capacity and backward integration, which are expected to aid margins in the future.
- A healthy order book and strong industry growth provide revenue visibility, but near-term profitability remains under pressure.
Hexa Perspective
The quarter highlights the classic tension between growth investment and immediate profitability. Energy-Mission is funding its expansion, evident in rising fixed costs, while revenue is yet to catch up at a pace that protects margins.
The path to its targeted 8% profit margin hinges on two factors: realizing the cost savings from its new in-house component plant and achieving higher utilization of its expanded capacity. Until those operational levers are pulled effectively, the margin squeeze may persist for another quarter or two.
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