PYFA — 2Q26 revenue up 21.6% and the operating line turned positive, but EBITDA still does not cover interest

KEY HIGHLIGHTS

The operating turnaround is real and it is broad. 2Q26 revenue rose 21.6% YoY to IDR 851 Bn and 1H26 16.8% to IDR 1,618 Bn, and gross margin improved 4.9pp to 21.2% in the quarter and 1.8pp to 23.1% across the half. Gross profit rose 57.7% on a 21.6% sales gain. Cost control did the rest: G&A fell 17.9% YoY in the quarter, taking the G&A ratio down 5.8pp to 12.0% of sales. The result is a small operating profit of IDR 0.8 Bn against a IDR 47.3 Bn operating loss in 2Q25, and 1H26 essentially breakeven at minus IDR 0.4 Bn against minus IDR 68.4 Bn.
But the capital structure consumes the entire improvement. Finance costs rose 13.8% in 1H26 to IDR 172.7 Bn — more than the whole gross profit improvement of IDR 78.5 Bn. 1H26 EBITDA of IDR 162.1 Bn is still below finance costs of IDR 172.7 Bn, an interest cover of 0.94x, up from 0.45x a year earlier but still under one. Finance costs absorb 10.7% of revenue. The split is bank loans IDR 77.1 Bn, bonds IDR 56.9 Bn and lease liabilities IDR 34.4 Bn, with lease interest up 60.4% YoY. Net loss was IDR 97.4 Bn in 2Q26 and IDR 178.3 Bn in the half, narrowed from IDR 122.6 Bn and IDR 213.2 Bn.
Leverage is going the wrong way while the loss persists. Gross debt rose 11.3% in six months to IDR 5,386 Bn and net debt 11.0% to IDR 5,259 Bn, funded by IDR 448 Bn of net new bank borrowing. Equity fell 8.7% to IDR 899 Bn as losses accumulated, so net debt to equity moved from 4.81x to 5.85x and net debt sits at roughly 16x annualised 1H26 EBITDA. Note also that IDR 399.6 Bn of bonds moved into current liabilities from nil at end-2025, alongside IDR 374.5 Bn of long-term bank loans falling due, against cash of only IDR 127 Bn. Refinancing, not trading, is the binding constraint.
Currency cuts both ways and sits mostly outside profit or loss. PYFA consolidates an Australian group acquired in 2024, led by PYFA Australia Pty Ltd with assets of IDR 3,288 Bn, roughly 44% of the group. Rupiah weakness produced a translation gain of IDR 122.4 Bn in other comprehensive income in 1H26 against IDR 38.5 Bn a year earlier, which is why the total comprehensive loss of IDR 82.8 Bn is far smaller than the IDR 178.3 Bn net loss. The same weakness inflates the rupiah value of foreign-currency borrowings.
Against our own model the half is a long way behind. PYFA has no Bloomberg coverage, so the benchmark is the Aldiracita forecast. 1H26 revenue of IDR 1,618 Bn is 36.8% of our FY26 estimate of IDR 4,397 Bn against a 50.2% share in 1H25, and EBITDA of IDR 162 Bn is 18.0% of the IDR 900 Bn forecast. Hitting FY26 needs IDR 2,779 Bn of second-half revenue, 71.8% above the first half. Part of that gap is calibration, not deterioration: our FY25 forecast of IDR 4,143 Bn revenue and a IDR 88 Bn net loss compares with audited actuals of IDR 2,760 Bn and a IDR 380 Bn loss. Key watch: whether the 4.9pp gross margin gain holds into 2H, and how the IDR 400 Bn bond and IDR 375 Bn of current bank debt are refinanced. On the present run rate PYFA needs about IDR 20 Bn more quarterly EBITDA simply to cover interest.