Corporate Merchant Bankers Q2 FY27 results: net loss of ₹2.62 crore vs ₹1.02 crore profit

How did Corporate Merchant Bankers perform in Q2 FY27?

Corporate Merchant Bankers reported standalone revenue from operations of ₹2.28 crore in Q2 FY27, compared with ₹0 crore in Q2 FY26. Total income was ₹2.28 crore, up ₹0.71 crore, or 45.2%, from ₹1.57 crore a year earlier. Other income was ₹0 crore, against ₹1.57 crore in Q2 FY26. EBITDA and EBITDA margin were not reported.

The company reported a loss before tax of ₹2.62 crore in Q2 FY27, compared with a profit before tax of ₹1.37 crore in Q2 FY26. The net result was a loss of ₹2.62 crore, compared with a net profit of ₹1.02 crore a year earlier. Basic EPS was negative ₹0.41, against ₹3.10 in Q2 FY26, and there was no exceptional item.

Against Q1 FY27, standalone revenue from operations rose from ₹0 crore to ₹2.28 crore, while total income fell ₹0.30 crore, or 11.6%, to ₹2.28 crore from ₹2.58 crore. The loss before tax widened to ₹2.62 crore from ₹0.52 crore, and basic EPS moved from ₹0.08 to negative ₹0.41. No consolidated figures were given.

What changed in Corporate Merchant Bankers' costs and profit?

Total expenses increased ₹4.71 crore, or 2355.0%, to ₹4.91 crore in Q2 FY27 from ₹0.20 crore in Q2 FY26. Finance costs rose ₹1.78 crore to ₹1.78 crore from ₹0 crore, while other expenses increased ₹2.92 crore, or 1536.8%, to ₹3.11 crore from ₹0.19 crore. Employee cost was unchanged at ₹0.01 crore.

Other income fell ₹1.57 crore to ₹0 crore from ₹1.57 crore in Q2 FY26. Tax expense fell ₹0.35 crore to ₹0 crore from ₹0.35 crore. There was no exceptional item in either quarter. The filing figures show the expense increase and lower other income; the filing excerpts do not state the reasons for those changes.

Compared with Q1 FY27, total expenses rose ₹1.81 crore, or 58.4%, to ₹4.91 crore from ₹3.10 crore. Finance costs increased ₹1.78 crore to ₹1.78 crore from ₹0 crore, other expenses rose ₹0.10 crore, or 3.3%, to ₹3.11 crore from ₹3.01 crore, and employee cost fell ₹0.07 crore, or 87.5%, to ₹0.01 crore from ₹0.08 crore.

How did the first half of FY27 go?

In H1 FY27, Corporate Merchant Bankers reported standalone revenue of ₹4.86 crore and total income of ₹4.86 crore. Total income was ₹1.64 crore, or 50.9%, higher than the ₹3.22 crore recorded in H1 FY26. The filing does not provide a comparable revenue percentage for the prior period.

The company reported a loss before tax of ₹3.14 crore in H1 FY27, compared with a profit before tax of ₹2.14 crore in H1 FY26, a deterioration of ₹5.28 crore. Net profit moved from ₹1.60 crore to a loss of ₹3.14 crore, while EPS was negative ₹0.50 against ₹4.85 in H1 FY26. The results are on a standalone basis.

What do the balance sheet and cash flow show?

For H1 FY27, net cash used in operating activities was ₹4.56 crore, compared with ₹0.74 crore used in H1 FY26. Net cash from investing activities was ₹4.17 crore, compared with ₹0.36 crore in the earlier period, while net cash from financing activities was ₹3.42 crore, compared with ₹0 crore. Capital expenditure was ₹0 crore in both periods.

How has Corporate Merchant Bankers done over the last 8 quarters?

Revenue from operations was ₹0 crore in each of the reported quarters from Q3 FY25 through Q1 FY27, then rose to ₹2.28 crore in Q2 FY27. The available figures therefore show the current quarter as the first reported revenue from operations after several quarters at ₹0 crore.

Reported profit peaked at ₹2.11 crore in Q4 FY25, after ₹0.58 crore in Q1 FY26 and ₹1.02 crore in Q2 FY26. The trend data does not provide profit for Q3 FY26 through Q1 FY27, while Q2 FY27 showed a net loss of ₹2.62 crore. EBITDA margin was not reported for the listed quarters, so no revenue or margin peak can be identified on that basis.

What did the auditors point out?

The limited-review report was expressed as a qualified conclusion. The auditors said the company had unsecured loans aggregating to ₹5,181.80 lakhs outstanding as at 30 September 2026 that were not supported by formal written loan agreements with the respective parties, and that the terms and conditions, including repayment terms, tenure, interest rate and security, were not formally documented.

The auditors said they were unable to independently verify the contractual terms and conditions governing these loans. Subject to the possible effects of that matter, nothing came to their attention causing them to believe that the accompanying statement had not disclosed the information required under Regulation 33 of the LODR Regulations or contained a material misstatement. The review was not an audit and no audit opinion was expressed; the excerpts did not state a going-concern or emphasis-of-matter conclusion.

How did Corporate Merchant Bankers shares react?

After the filing, the stock rose 0.6% on the reaction day from its pre-results close of ₹49.65. By the next day's close, the stock was down 1.3% from that pre-results close. The Other Financial Services industry median was up 0.3% on the reaction day and up 0.2% by the next day's close; the stock's excess performance was 0.3 percentage points on the reaction day and negative 1.5 percentage points by the next day's close.

How did other Other Financial Services companies do?

Among 15 other Other Financial Services companies that filed for the quarter, the median revenue growth was negative 7.7%. Thirteen companies reported higher profit, based on 26 companies for the profit comparison. The peer data does not provide counts for companies whose revenue grew slower or faster than Corporate Merchant Bankers, so those counts cannot be stated.