LEAP India544865Quarterly results

Q2FY27 PAT up 62% on 23% income growth; Vimpretech and TIPS acquired for Rs. 1,420 Mn

Q2FY27 total income Rs. 2,159 Mn (+23%), PAT Rs. 178 Mn (+62%).

By ScoutQuest · Mon 26 Oct 2026, 10:18 PM IST · 2 min read

Q2FY27 Total Income: Rs. 2,159 Mn (+23%)
Q2FY27 PAT: Rs. 178 Mn (+62%)
Net Debt: Rs. 4,337 Mn vs Rs. 8,010 Mn a year ago

Q2FY27: profits grew faster than income

Total income was Rs. 2,159 Mn, up 23% year on year, with revenue from operations at Rs. 2,112 Mn. EBITDA was Rs. 1,097 Mn, up 25%, at a margin of 50.8% (+91 bps). Profit after tax rose 62% to Rs. 178 Mn, taking the PAT margin up 200 bps to 8.2%. Cash PAT was Rs. 754 Mn, up 26%, at a 34.9% margin.

Within the quarter, asset-pooling income grew 19% and MHE (material handling equipment) income grew 52%. Profit before tax before exceptional items was Rs. 307 Mn, up 109%; PAT is stated after a one-time charge of Rs. 68 Mn for prepayment of long-term borrowings.

H1FY27: half-year numbers

Total income: Rs. 4,294 Mn, up 21% year on year
EBITDA: Rs. 2,239 Mn, up 23%, margin 52.1% (+97 bps)
Profit after tax: Rs. 425 Mn, up 42%, margin 9.9% (+149 bps)
Cash PAT: Rs. 1,566 Mn, up 25%

The company attributed the gap between income and profit growth to operating leverage over a larger network, cost discipline and an 11.9% year-on-year decline in quarterly finance costs.

Acquisitions: Vimpretech and TIPS

LEAP acquired Vimpretech and TIPS for Rs. 1,420 Mn. Vimpretech brings in-house design, mould-making and multi-process plastics manufacturing across two units in Puducherry and Tamil Nadu. TIPS adds an automotive container pooling business with four warehouses across Bangalore, Nashik and Tirunelveli. Together, the two businesses contributed Rs. 650 Mn of FY26 revenue and 200+ customers across electronics, white goods, pharmaceuticals, agriculture, auto and F&B supply chains.

Credit rating and balance sheet

India Ratings & Research upgraded the long-term bank loan rating to IND A+ / Stable from IND A, and the short-term rating to IND A1+ from IND A1. This is described as the company's third rating improvement in three and a half years.

Debt-to-equity improved to 0.48x from 0.96x a year ago
Net debt at Rs. 4,337 Mn, against Rs. 8,010 Mn a year earlier
Net debt to EBITDA about 1.9x, from about 4.4x
Approximately Rs. 1,100 Mn held as investments

Operating network

Pool of 15.5 Mn assets, asset base value over Rs. 18,200 Mn
1,100+ customers across 11,000+ touchpoints and 27 fulfilment centres
Customer churn below 0.5%
Utilisation: pallets 89.3%, MHE 82.3%, containers 73.7%
Total assets grew 12% to 15.5 Mn while income grew 23%

Management comment

Mr. Sunu Mathew, Chairman, Managing Director & CEO, said profits have continued to grow well ahead of revenue, with Q2FY27 PAT up 62% on 23% income growth and H1 PAT up 42% on 21% growth, which he described as a demonstration of the operating leverage built through cost management and scalability. He added that net debt has nearly halved and debt-to-equity has come down to 0.48x.

The announcement also states that the market for pooled pallets in India is projected to grow at a 14.9% CAGR between FY26 and FY31, from approximately 10 Mn to 20 Mn units, and that LEAP holds about 90% of India's pallet-pooling market.

Also from LEAP India