Pacific Industries posted a 355% jump in net profit for Q2 FY27, driven by a 52% rise in revenue. However, the net profit margin remains at a slim 2.5%, highlighting persistent cost pressures in the export-focused stone business.
Pacific Industries’ export-led recovery gained momentum this quarter, but the path to robust profitability remains narrow. The granite and quartz specialist posted a massive year-on-year profit jump, yet the bottom line is still a thin slice of its top line.
The numbers show a business rebounding from a weak base. Revenue rose 52.4% year-on-year to ₹60.33 crore, while net profit surged 354.5% to ₹1.5 crore. Sequentially, both metrics softened slightly from a strong Q1.
Revenue & profit
Revenue (₹ Cr)
Net Profit (₹ Cr)
Net Profit Margin (%)
Metric
CurrentQ2 FY27
PreviousQ1 FY27
Same quarter LYQ2 FY26
Revenue (₹ Cr)
60.33YoY +52%
63.92
39.59
Net Profit (₹ Cr)
1.50YoY +355%
1.69
0.33
Net Profit Margin (%)
2.5YoY +213%
2.6
0.8
The Export Engine Revs Up
The year-on-year surge is a story of export volumes finding their footing. According to a StockFin.ai analysis, the company’s core granite and quartz segment drove the growth. Historically, over 95% of its turnover comes from exports to markets like the USA and Europe.
This rebound comes after a period of severe pressure, including US anti-dumping duties that halted shipments in the past. The recovery, while strong, is measured against a very low base in Q2 FY26.
Why Profit Growth Outpaced Revenue
A sharp 45.7% year-on-year drop in finance costs provided critical relief. Interest expense fell to ₹0.55 crore, down from ₹1.01 crore a year ago, as the company managed its debt lower.
Despite this, profitability is still wafer-thin. The net profit margin improved 170 basis points year-on-year but sits at just 2.5%. A Multibagg.ai report noted that other expenses more than doubled, consuming much of the revenue gain.
A Cautious Market and Slim Profile
The market reaction has been muted, with the stock down 25% over the past year. Institutional interest remains negligible, with FII and DII holdings near zero, as noted in a StockFin.ai shareholder analysis. This reflects concerns over the business's cyclicality and thin margins.
The company’s balance sheet offers some stability, with a high current ratio of 2.89 and net cash of ₹1.64 crore reported for the period. However, returns on equity and capital employed are below 1.1%, underscoring the challenge of generating shareholder returns at this scale.
Key Points
Net profit surged 355% year-on-year to ₹1.5 crore, rebounding from an exceptionally weak Q2 FY26.
Revenue growth of 52% was driven by a recovery in export volumes for granite and quartz slabs.
A sharp reduction in interest expense provided a significant boost to the bottom line.
Despite improvements, net profit margin remains slim at 2.5%, indicating persistent cost pressures.
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Hexa Perspective
The quarter confirms an operational turnaround but not yet a transformation. Pacific Industries is riding a cyclical uptick in export demand, yet its ability to convert sales into substantial earnings is constrained.
The path forward hinges on sustaining this volume recovery while managing volatile input and freight costs. With institutional ownership absent and margins thin, the stock's appeal is likely limited to those betting on a prolonged export cycle rather than a fundamental re-rating of profitability.
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Frequently asked questions
What were Pacific Industries' Q2 FY27 results?
For Q2 FY27 (quarter ended September 2026), Pacific Industries reported revenue of ₹60.33 crore, a 52.4% increase year-on-year. Net profit was ₹1.50 crore, a surge of 354.5% compared to the same quarter last year. The net profit margin for the quarter was 2.5%.
Why did Pacific Industries' profit jump over 350% in Q2 FY27?
Pacific Industries' profit jumped primarily due to a strong 52% rebound in revenue from its core granite and quartz export business, coupled with a significant 45.7% reduction in interest costs. The year-on-year comparison is also against a very low profit base of ₹0.33 crore in Q2 FY26.
What was Pacific Industries' net profit margin in Q2 FY27?
Pacific Industries' net profit margin was 2.5% for Q2 FY27. This represents an improvement of 170 basis points from the 0.8% margin in Q2 FY26, but it remains a slim portion of total revenue.
Why did Pacific Industries' interest expense fall in Q2 FY27?
Pacific Industries' interest expense fell 45.7% year-on-year to ₹0.55 crore in Q2 FY27. The reduction indicates the company has managed its debt levels lower, providing a direct boost to its pre-tax profit during the quarter.
How did Pacific Industries' Granite and Quartz segment perform in Q2 FY27?
While consolidated figures are reported, analysis from StockFin.ai indicates the company's core granite and quartz export segment drove the 52% yearly revenue growth. This segment historically generates over 95% of the company's turnover from markets like the USA and Europe.
What is the cash flow situation for Pacific Industries in Q2 FY27?
According to a filing noted by StockFin.ai, Pacific Industries generated operating cash flow of ₹20.95 crore (₹2,094.85 lakhs) and ended the period with a net cash position of ₹1.64 crore (₹164.36 lakhs), indicating positive cash generation from operations.
What is the demand outlook for the granite and quartz industry?
A sector report from Multibagg.ai forecasts India's natural stone market to grow at a 7.4% CAGR from 2026-2033, supported by construction and infrastructure. However, companies remain exposed to export risks, freight costs, and competitive pressure from engineered quartz.
Are institutional investors increasing their stake in Pacific Industries?
No, institutional ownership remains minimal. A StockFin.ai analysis shows FII holding at 0% and DII holding at 0.1% as of Q1 FY27, reflecting limited interest from large domestic or foreign funds in the company.
How did Pacific Industries' stock price react to the Q2 FY27 results?
Specific post-results reaction data isn't provided, but the stock was down 25.3% over the one-year period leading up to November 6, 2026. The muted institutional interest and thin margins have contributed to broader market caution.
What were the specific challenges in Pacific Industries' Q2 FY26 results?
In Q2 FY26, Pacific Industries reported a net profit of just ₹0.33 crore on revenue of ₹39.59 crore. The company faced headwinds including potential export market softness and higher interest costs of ₹1.01 crore, which significantly pressured profitability.
Pacific Industries Q2 profit jumps to Rs 1.4993 crore year-on-year
Pacific Industries reported a consolidated net profit of ₹1.4993 crore for Q2 FY27 (September 2026 quarter), a significant jump from ₹0.3255 crore in Q2 FY26. This was driven by a 52% rise in revenue to ₹60.329 crore and lower finance costs.
Pacific Industries Ltd (PACIFICI) Stock Analysis November 2026
A November 2026 analysis by StockFin.ai notes Pacific Industries is in a margin recovery phase, having returned to profitability in recent quarters. It highlights minimal institutional ownership, steady promoter holding, and that sustainability of profits depends on operational discipline and market conditions.
