Haldyn Glass (HALDYNGL) Q2 FY27 Profit Nearly Doubles on Strong Operating Leverage
Haldyn Glass posted a 91% surge in quarterly net profit, driven by robust revenue growth and significant margin expansion from operational efficiency.
Haldyn Glass's Q2 FY27 profit soared 91% year-on-year to ₹13 crore. Revenue grew 21%, but the real story is a 340 basis point jump in net profit margin, powered by operating leverage and a stronger joint venture.
For glass container makers, the quarter is about managing the furnace: keeping it hot and full to spread high fixed costs. Haldyn Glass did exactly that, turning a steady revenue rise into a profit surge that nearly doubled its bottom line.
Revenue for the September quarter reached ₹140 crore, up 21% from a year ago. Profit jumped 91% to ₹13 crore, with the net profit margin climbing to 9.3%. The company has now delivered over 20% revenue growth for three straight quarters.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 140.0YoY +21% | 138.7 | 115.7 |
| Profit (₹ Cr) | 13.0YoY +91% | 10.3 | 6.8 |
| Net Profit Margin | 9.3%YoY +58% | 7.4% | 5.9% |
The Leverage Behind the Leap
The profit growth far outpaced sales because costs did not rise as fast. According to MarketsMOJO, operating margin expanded by 407 basis points year-on-year to 15.77%. Employee costs fell as a percentage of sales, and interest expense dropped 12%.
A stronger contribution from its joint venture, Haldyn Heinz Fine Glass, also lifted the bottom line. ScanX.trade reported the JV's profit share rose to ₹2.98 crore this quarter from ₹0.78 crore in Q1.
A Capacity-Constrained Expansion
Demand appears robust, with the company running its 430-tonne-per-day furnace at full capacity. In August, the board approved a ₹150 crore plan to rebuild and add 75 tonnes of daily capacity within a year.
This expansion, funded by internal accruals and some debt, is already visible in rising capital work-in-progress. It aims to relieve a clear bottleneck for future growth.
The Market's Measured Reaction
The stock has gained 41% over the past year, but recent action shows consolidation. It trades at a P/E of 15.6, a steep discount to the industry average of 31.8.
MarketsMOJO sees a fair value of ₹155-165, implying 22-27% upside. Notably, foreign institutional investors made a small entry this quarter, a first in recent periods.
Key Points
- Net profit surged 91% year-on-year, driven by a 340 basis point expansion in net profit margin.
- Strong operating leverage, lower interest costs, and a better joint venture contribution powered the earnings jump.
- A ₹150 crore capacity expansion is underway to add 75 TPD, targeting completion by August 2027.
- The stock trades at a significant discount to industry valuations despite a strong earnings trajectory.
Hexa Perspective
The quarter confirms Haldyn Glass is in a sweet spot of operating leverage. As sales volume grows, it spreads high fixed furnace costs thinner, dropping more profit to the bottom line.
The sustainability of these margins hinges on two factors: stable input costs like soda ash and energy, and the timely execution of its capacity expansion without cost overruns. The current valuation gap suggests the market is yet to fully price in this improving efficiency story, but also reflects the micro-cap risks inherent in its size and end-market concentration.
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