Q2 FY27 earnings call shows higher sales but sharply lower margin
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Q2 FY27 revenue rose 10.7% to Rs 60 crore, but operating profit was Rs 1.3 crore and margin fell to 2.17%; net loss was Rs 5.4 crore. H1 revenue fell 2.6% to Rs 125 crore, while operating profit doubled to Rs 9.6 crore and margin improved to 7.66%; net loss was Rs 5.3 crore. Raw material prices rose 25% to 50% and freight nearly fivefold. US tariffs add risk. About Rs 110 crore of subsidiary loans is being converted into equity.
Profit improved in H1, but Q2 faces input, freight and US tariff pressure. Converting subsidiary loans to equity reduces leverage without cash outflow.