TARIL and 4 Other Stocks That Reported Strong EBITDA Margin Expansion in Q2 to Keep on Your Radar
EBITDA margin expansion is an important indicator of improving operational efficiency, as it reflects a company's ability to generate higher operating earnings relative to its revenue. A rise in margins can be driven by better product mix, cost control, improved realisations or operating leverage.
During Q2 FY27, several listed companies reported notable improvements in EBITDA margins across different sectors. These gains were supported by stronger revenues and improved profitability, with some companies also recording significant growth in net profit.
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Laurus Labs Ltd
Laurus Labs is a drug and biotech company involved in the production of active pharmaceutical ingredients (APIs), formulation manufacturing and intermediates. Laurus Labs also offers contract development and manufacturing (CDMO) services to multinational pharmaceutical companies.
With a market capitalisation of approximately ₹1,26,703 crore, shares of Laurus Labs Limited closed at ₹2,345 per share, up from their previous close of ₹2,306.10 per share.
Laurus Labs reported a 33% YoY increase in revenue to Rs. 2,206 crore in Q2 FY27, while gross margin improved by 310 basis points to 63%. EBITDA surged 78% to Rs. 762 crore, with EBITDA margin expanding by 850 basis points to 34.5% from 26% in Q2FY26. Profit before tax increased 119% to Rs. 592 crore, while net profit jumped 126% to Rs. 441 crore and diluted EPS rose 128% to Rs. 8.2.
Transformers & Rectifiers India Ltd
Transformers & Rectifiers India produces power, distribution, furnace and speciality transformers that are suitable for power generation, distribution and transmission, renewable energy, railways and industry.
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With a market capitalisation of approximately ₹9,500 crore, shares of Transformers and Rectifiers (India) Limited closed at ₹316.50 per share, down from their previous close of ₹317.40 per share.
The company reported a 61% YoY increase in consolidated revenue from operations to Rs. 739 crore in Q2 FY27, compared to Rs. 460 crore in Q2 FY26. EBITDA surged 119% to Rs. 129 crore, with EBITDA margin expanding by 460 basis points to 17.4% from 12.8%. PAT increased 117% to Rs. 81 crore from Rs. 37 crore, while PAT margin improved to 11% from 8.1%. EPS rose to Rs. 2.66 from Rs. 1.13.
Radico Khaitan Ltd
Radico Khaitan is one of the biggest producers of alcoholic beverages in India with a range of whiskies, vodka, rum and brandy. Some of its famous brands are Magic Moments, 8 PM, Rampur Indian Single Malt and Jaisalmer Gin.
With a market capitalisation of approximately ₹60,563 crore, shares of Radico Khaitan Limited closed at ₹4,520 per share, up from their previous close of ₹4,375 per share.
The company reported a 16.8% increase in revenue from operations to Rs. 1,745.1 crore, while gross profit rose 28.6% to Rs. 838.4 crore. EBITDA increased 51% to Rs. 356.5 crore, with EBITDA margin expanding by 462 basis points to 20.4%.
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Total comprehensive income grew 67.1% to Rs. 230.3 crore. IMFL volumes increased 7.2% to 10.02 million cases, while Prestige & Above volumes rose 35.8% to 5.28 million cases. Net debt declined by Rs. 68.7 crore from March 2026 to Rs. 175.4 crore.
Solara Active Pharma Sciences Ltd
Solara Active Pharma Sciences Ltd is a pharmaceutical company that focuses on manufacturing active pharmaceutical ingredients (APIs). The company serves both regulated and emerging markets with its API development, manufacturing, and contract research services.
With a market capitalisation of approximately ₹3,089 crore, shares of Solara Active Pharma Sciences Limited closed at ₹642.65 per share, down from their previous close of ₹645.40 per share.
The company reported a 33% YoY increase in revenue to Rs. 418 crore, while EBITDA more than doubled by 118% to Rs. 77 crore. It posted a net profit of Rs. 28.5 crore compared to a loss of around Rs. 10 crore in the corresponding quarter last year. EBITDA margin improved to 18.4% from 11.2% in Q2 FY26.
PVR INOX Ltd
PVR INOX Ltd is the biggest multiplex exhibitor of movies in India, which was formed by the merger of PVR Ltd. and INOX Leisure Ltd. The company earns its revenue from selling movie tickets, food & beverages, advertisements etc.
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With a market capitalisation of approximately ₹15,510 crore, shares of PVR INOX Limited closed at ₹1,579.45 per share, up from their previous close of ₹1,575.95 per share.
PVR INOX reported a 16.6% YoY increase in total income to Rs. 2,139.3 crore in Q2 FY27. Reported EBITDA rose 23.7% to Rs. 803.5 crore, with EBITDA margin expanding to 37.6% from 35.4%. EBIT increased 52.2% to Rs. 507.6 crore, while profit before tax surged 141.8% to Rs. 350.8 crore. Net profit for the year increased 149.4% to Rs. 263.1 crore, compared to Rs. 105.5 crore in Q2 FY26. Diluted EPS rose to Rs. 26.74 from Rs. 10.98.