Digjam Q2 FY27 results: net profit ₹1.36 crore vs ₹1.74 crore loss, revenue down 29.8%

How did Digjam perform in Q2 FY27?

Digjam reported a net profit of ₹1.36 crore in Q2 FY27 against a net loss of ₹1.74 crore in Q2 FY26, while the previous quarter recorded ₹0.82 crore. Basic EPS was ₹0.68, compared with a loss of ₹0.87 per share in the year-ago quarter and ₹0.41 in Q1 FY27. There was no exceptional item in Q2 FY27, and the company recorded a net loss of ₹1.74 crore in Q2 FY26.

What changed in Digjam's costs and profit?

Total expenses fell 36.0% to ₹8.54 crore in Q2 FY27 from ₹13.34 crore in Q2 FY26. Employee cost was ₹0.40 crore, up ₹0.18 crore or 81.8%, while other expenses declined ₹0.16 crore or 9.1% to ₹1.59 crore. Finance costs fell ₹0.34 crore to no finance cost, and depreciation was unchanged at ₹0.01 crore.

Other income declined ₹0.06 crore or 85.7% to ₹0.01 crore from ₹0.07 crore in Q2 FY26. Tax was unchanged at no tax, and there was no exceptional item in either period. The filing does not state a reason for the changes in employee cost, other expenses, other income or finance costs beyond reporting the figures and differences.

How did the first half of FY27 go?

For H1 FY27, Digjam reported revenue of ₹17.38 crore, down 3.9% from ₹18.09 crore in H1 FY26, and total income of ₹17.53 crore, down 3.5% from ₹18.17 crore. Profit before tax rose to ₹2.27 crore from ₹0.20 crore, a difference of ₹2.07 crore, while net profit was ₹2.18 crore against a net loss of ₹0.78 crore.

Basic EPS for H1 FY27 was ₹1.10, compared with a loss of ₹0.39 in H1 FY26. The first-half results therefore show lower revenue and total income alongside a return to profit, although the filing does not state the specific reason for the year-on-year change in profitability.

What do the balance sheet and cash flow show?

Digjam’s total assets were ₹83.88 crore as on 30 September 2026, up from ₹75.02 crore as on 31 March 2026. Total equity rose to ₹6.61 crore from ₹4.42 crore, while borrowings were unchanged at ₹60.13 crore. Cash declined to ₹0.70 crore from ₹1.04 crore; inventories were ₹13.12 crore, trade receivables ₹15.67 crore and trade payables ₹13.80 crore.

H1 FY27 operating cash flow was negative ₹0.32 crore, compared with negative ₹3.18 crore in H1 FY26. Investing cash flow was negative ₹0.02 crore against positive ₹3.79 crore, and financing cash flow was no financing cash flow compared with negative ₹1.83 crore. Capital expenditure was ₹0.02 crore in H1 FY27 and ₹0.01 crore in H1 FY26.

How has Digjam done over the last 8 quarters?

Revenue in the reported quarterly series rose from ₹5.35 crore in Q3 FY25 to a peak of ₹14.14 crore in Q2 FY26, before moving lower and then recovering to ₹9.93 crore in Q2 FY27. Profit reached its highest level at ₹3.65 crore in Q4 FY25 and its lowest at a net loss of ₹1.74 crore in Q2 FY26; Q2 FY27 recorded ₹1.36 crore.

The EBITDA margin was highest at 25.9% in Q3 FY25 and lowest at 1.2% in Q1 FY26. It subsequently moved to 14.1% in Q2 FY27, after 10.1% in Q1 FY27 and 14.0% in Q4 FY26, showing a higher margin than the two preceding quarters.

What did the auditors point out?

The independent auditor’s report states that the review did not enable the auditors to obtain assurance that would identify all significant matters that might be identified in an audit, and no audit opinion is expressed. Nothing came to their attention causing them to believe that the statement had not disclosed the information required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, or contained any material misstatement.

The report includes a section headed “Material Uncertainty Related to Going Concern.” It says current liabilities exceeded current assets by ₹1,971.80 lakhs as at 30 September 2026, operations at the company’s sole Jamnagar manufacturing facility had been discontinued effective 31 March 2025, and related assets classified as non-current assets held for sale had a carrying value of ₹5,318.53 lakhs. The auditors said the results were prepared on a going-concern basis based on management’s plans, including realisation of non-core assets, cost optimisation, strategic restructuring and a proposed scheme of arrangement; their conclusion was not modified for this matter.

How did Digjam shares react?

The filing appeared after market hours from a pre-results close of ₹51.06. The stock was down 3.4% after 5 minutes, 15 minutes and 30 minutes, while the reaction-day close was up 1.4% from the previous close. By the next day’s close it was down 3.4% from the pre-results close, and by the fifth session’s close it was up 4.9% from that close.

The Other Textile Products industry’s median reaction-day move was down 0.3%, while Digjam’s reaction-day move was up 1.4%, a difference of 1.8 percentage points. The industry median was down 3.1% by the next close and down 1.4% by the fifth close, against Digjam at down 3.4% and up 4.9%, respectively. Earlier reaction-day moves were down 3.8% on 6 August 2026, down 1.1% on 23 May 2026 and down 5.2% on 5 February 2026.

How did other Other Textile Products companies do?

Among 61 Other Textile Products companies compared for Q2 FY27, the median revenue growth was 24.1%. Five peers grew slower than Digjam and 56 grew faster than Digjam. The figures were available as on 4 November 2026.

Profit increased for 43 peers out of the 64 peers for which profit was compared.