Shares of Butterfly Gandhimathi Appliances surged as much as 10.9% on Thursday following the company's strong quarterly results. The stock closed 8.58% higher at ₹617 on the NSE, marking a significant recovery after gaining 5.1% over the past month but remaining down 4.7% for the year. According to reports from CNBC TV18, the positive market response reflects investor confidence in the company's robust financial performance.
The home appliances maker reported strong financial results for Q2 FY27, with net profit increasing 18.7% year-on-year to ₹20.18 crore. Revenue from operations grew 13.1% to ₹331 crore during the September quarter, compared to ₹293 crore in the corresponding period last year. As reported by CNBC TV18, EBITDA rose 13.3% year-on-year to ₹32 crore from ₹28 crore, though the EBITDA margin remained unchanged at 9.5%. The company's revenue growth excluding Crompton manufacturing stood at 15.9% year-on-year. According to latest reports, the company achieved its highest ever retail channel revenue during the quarter, demonstrating strong distribution network expansion.
Despite strong revenue growth, the company faced margin pressures due to commodity inflation. According to CNBC TV18, the material margin contracted by 160 basis points to 36.2%, primarily attributed to commodity inflation impacts. This margin compression despite strong top-line growth highlights the cost pressures facing the appliances sector, though the company's ability to maintain double-digit revenue growth across categories demonstrates resilience in market demand. The margin pressure was partially offset by pricing actions, allowing EBITDA margins to remain stable at 9.5% despite the cost headwinds.
The company's growth was supported by strong festive demand and broad-based performance across product categories. As reported by CNBC TV18, the Idea First series continued to gain consumer acceptance, with the range accounting for a growing share of the company's business. Management emphasized sustained double-digit revenue growth supported by gains across product categories and sales channels, with the Onam season marking a strong start to the festive period. The company successfully launched India's first 5-star rated cooktop 'RENZ PRO COOKTOP' and won the 'India's best design award' for Unicurve Triply Pressure Cooker. Core categories delivered robust growth, with infra cooktops emerging as a promising new growth engine.
Looking ahead, Butterfly Gandhimathi Appliances plans to sustain growth through continued brand investments across offline and online platforms. According to CNBC TV18, the company will focus on brand-building through media spending, targeted trade promotions and influencer-led campaigns. However, the company faces working capital pressures with operating cash flow turning negative at ₹70.97 crore in H1FY27 due to high trade receivables and inventory build-up. The board approved the re-appointment of two independent directors for second consecutive terms, with both appointments subject to shareholder approval via postal ballot. Management aims to achieve growth through consumer-focused innovation, premiumisation and wider geographical reach, positioning the company for continued market expansion despite current margin pressures and cash flow challenges.
