Danish Power Q2 FY27 results: net profit ₹37.72 crore, revenue up 38.0%

How did Danish Power perform in Q2 FY27?

Danish Power reported consolidated revenue of ₹291.93 crore for Q2 FY27, against ₹211.61 crore in Q2 FY26, a rise of ₹80.32 crore or 38.0%. EBITDA was ₹55.73 crore, up ₹20.51 crore or 58.2% from ₹35.22 crore, and the margin was 19.1% compared with 16.6%, an increase of 2.5 percentage points.

Profit before tax was ₹51.41 crore, up from ₹39.08 crore, while profit after tax was ₹37.72 crore. Basic EPS was ₹38.31 against ₹29.47 in Q2 FY26, a rise of ₹8.84 or 30.0%. On the standalone basis, revenue was ₹292.08 crore and profit after tax was ₹38.96 crore. A comparison with the previous quarter was not provided.

What changed in Danish Power's costs and profit?

Total expenses rose to ₹244.36 crore from ₹177.24 crore in Q2 FY26, an increase of ₹67.12 crore or 37.9%. Cost of materials was ₹257.84 crore against ₹166.11 crore, up ₹91.73 crore or 55.2%, while employee cost was ₹20.23 crore against ₹13.79 crore, up ₹6.44 crore or 46.7%.

Other expenses increased to ₹14.71 crore from ₹7.60 crore, a rise of ₹7.11 crore or 93.6%, and finance costs were ₹1.93 crore against ₹0.86 crore, up ₹1.07 crore or 124.4%. Other income fell to ₹3.84 crore from ₹4.72 crore, lower by ₹0.88 crore or 18.6%. There was no exceptional item in either quarter.

Tax expense was ₹13.69 crore, up ₹3.63 crore or 36.1% from ₹10.06 crore in Q2 FY26. The filing did not state reasons for the changes in individual cost lines, other income or tax.

What do the balance sheet and cash flow show?

Total assets were ₹677.66 crore at 30 September 2026, against ₹576.49 crore at 31 March 2026, while total equity was ₹494.8 crore against ₹461.41 crore. Borrowings rose to ₹14.98 crore from ₹2.17 crore and cash fell to ₹2.27 crore from ₹24.07 crore.

Inventories were ₹192.84 crore against ₹91.39 crore, trade receivables ₹129.17 crore against ₹111.16 crore, and trade payables ₹84.0 crore against ₹40.61 crore at the previous balance sheet date.

For H1 FY27, operating cash flow was -₹20.23 crore, compared with ₹22.35 crore in H1 FY26. Investing cash flow was -₹11.3 crore against -₹39.42 crore, financing cash flow was ₹6.94 crore against -₹5.08 crore, and capital expenditure was ₹11.27 crore against ₹39.59 crore.

Which businesses drove the quarter?

Transformers reported revenue of ₹265.36 crore for Q2 FY27 and an EBIT margin of 0.0%, while panels reported revenue of ₹21.31 crore and an EBIT margin of 0.0%. Year-ago figures for these two segments were not provided, so growth could not be stated.

Income from other sources reported revenue of ₹9.11 crore for Q2 FY27 and EBIT of ₹59.58 crore, with an EBIT margin of 654.2%. The filing did not provide year-ago segment revenue or EBIT for this segment.

What else did the company announce?

Danish Power filed an order disclosure for an award worth INR 57.14 Crores, approximately exclusive of GST, from leading renewable energy IPP/EPC companies for supplying various ratings of Inverter Duty Transformers for solar power projects across PAN India. The filing said the order was to be executed in 6-12 months and was not a related-party transaction.

The half-year results were reviewed by the Audit Committee and approved by the Board of Directors on 4 November 2026. The statutory auditor expressed an unmodified opinion on the results, and the filing stated that the published unaudited year-to-date figures were subject to limited review.

The filing stated that with effect from 1 April 2026, the company changed its method of valuation of inventories from First-In-First-Out to Weighted Average Cost. No dividend or fund raise was declared in the filings provided.

What did Danish Power's management say?

Management said the company was in line to achieve its FY27 topline guidance of ₹700 crore plus, with similar margins, adding that the second half was seasonally stronger. It said the confirmed order book stood at over ₹600 crore, to be executed over the next six to nine months, and that demand remained strong with healthy enquiry inflows.

Management said the next expansion phase would add about 15,000 MVA and take total installed capacity to about 26,000 MVA, at an estimated capital outlay of around ₹200 crore funded through about ₹100 crore of internal accruals and around ₹100 crore of debt. Site work is planned around December 2026, with additional capacity expected from FY28 onwards.

Management said the new facility, dedicated to 132, 220 and 400 kV transformers, would take the company into the 400 kV class for the first time. It said exports rose to 13% of revenue in H1 FY27 from about 8% in FY26, with Europe and the Middle East the largest export markets, and that a fully automated radiator plant would meet about 90% of radiator requirement in the coming year.

Management flagged global challenges including the West Asia war and said margin preservation remained a key strategic priority. It also said about 10% to 20% of tanks were being manufactured in-house, while the 400 kV expansion depended on site work, commissioning and a ramp from FY28 onwards.

The presentation noted that inventories increased from ₹9,139 lakhs at FY26 to ₹19,284 lakhs at H1 FY27, and trade receivables rose from ₹11,116 lakhs to ₹12,917 lakhs. H1 FY27 borrowings were listed as ₹1,128 lakhs long term and ₹370 lakhs current. No analysts' questions were included in the presentation.

How did Danish Power shares react?

The filing appeared after market hours. The stock moved up 4.7% within 5 minutes of the filing, up 2.3% after 15 minutes and up 3.2% after 30 minutes, measured from the price when the filing appeared.

On the reaction day, from the previous close of ₹879.3 to the close of the first session that could trade on the news, the stock was up 5.9%. The base price at the time of the filing was ₹908.95. No one-day or five-day reaction, sector median move or market comparison figures were provided, and there were no past results-day moves recorded.