Emrock Corporation Q2 FY27 results: net loss of ₹1.26 crore

How did Emrock Corporation perform in Q2 FY27?

Emrock Corporation reported consolidated revenue of ₹2.82 crore for Q2 FY27, up ₹2.37 crore from ₹0.45 crore in Q1 FY27. Total income rose to ₹3.03 crore from ₹0.65 crore, while total expenses increased to ₹0.61 crore from ₹0.38 crore. EBITDA increased to ₹2.58 crore from ₹0.22 crore, and the EBITDA margin rose 41.6 percentage points to 91.4%.

Profit before tax increased to ₹2.42 crore from ₹0.27 crore, but the company reported a net loss of ₹1.26 crore after tax of ₹0.67 crore, against net profit of ₹0.19 crore in Q1 FY27. There was no exceptional item. Q1 FY27 basic EPS was ₹0.12; no Q2 FY27 basic EPS or year-ago quarter comparison was provided.

On the standalone basis, Q2 FY27 revenue was ₹2.82 crore and profit after tax was ₹1.78 crore, compared with profit after tax of ₹0.25 crore in the previous quarter. For H1 FY27, consolidated revenue was ₹3.27 crore, total income ₹3.69 crore, profit before tax ₹2.70 crore, profit after tax ₹0.85 crore and EPS ₹2.50.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹48.75 crore, total equity ₹26.21 crore, borrowings ₹18.18 crore and cash ₹0.23 crore. Inventories stood at ₹4.50 crore, trade receivables at ₹2.01 crore and trade payables at ₹1.68 crore. The supplied filings did not provide a previous balance-sheet date for comparison.

For H1 FY27, operating cash flow was ₹0.26 crore, investing cash flow was ₹7.18 crore and financing cash flow was ₹6.10 crore. Capital expenditure was -₹4.85 crore. No year-earlier cash-flow comparison was provided.

Which businesses drove the quarter?

The Pharma Business reported revenue of ₹2.42 crore and EBIT of ₹1.42 crore, with an EBIT margin of 58.7%. The Solar Business reported revenue of ₹0.40 crore and EBIT of ₹0.23 crore, also with an EBIT margin of 58.7%. Other Business reported revenue of ₹0.21 crore and EBIT of ₹0.12 crore, with an EBIT margin of 58.7%.

Real Estate Business and Hospitality Business reported no revenue and no EBIT in the supplied facts. Year-ago segment revenue, EBIT and growth figures were not provided, so the segments’ year-on-year movements cannot be stated from the available figures.

What else did the company announce?

The board approved the un-audited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review report. It also approved an alteration to the Main Object Clause of the Memorandum of Association, subject to member approval, adding logistics and supply-chain management, mining and equipment rental, and trading activities.

The company appointed Rekha Sejpal & Associates, Practicing Company Secretary, Ahmedabad, as scrutinizer for the postal ballot meeting. The board also noted the addition of logistics, mining and trading objects in the memorandum and said a postal ballot notice would be made available for an extraordinary general meeting. The same-day filings did not report a dividend, fund raise or appointment beyond the scrutinizer appointment.

Separate disclosures reported conversions of warrants into equity shares. Jatinkumar Tulsibhai Patel, Managing Director, acquired 17,93,712 equity shares representing 6.24% of paid-up capital; Parth Tulsibhai Patel, Director and CFO, acquired 17,93,712 shares representing 6.24%; and Arjunkumar Jagdishbhai Patel, Whole-time Director, acquired 18,48,067 shares representing 6.43%.

What did the auditors point out?

The auditors’ report included an emphasis of matter. It stated that there are inherent risks in estimating the costs to complete each inventory, specifically TDR development projects, and in estimating future selling prices for each TDR development project.

The auditors also said uncertainty exists regarding the eligibility of generating TDR under the applicable regulations, including conditions for the original owner to claim TDR in the form of a Development Rights Certificate upon surrendering compensation and complying with conditions prescribed by municipal authorities. The report noted that management had obtained an independent valuation of the inventory.

How did other Packaged Foods companies do?

Thirteen other Packaged Foods companies were compared for this quarter, with a median revenue growth of 2.3%. Seven of the peers reported higher profit, based on 16 peers for the profit comparison. The supplied facts did not provide the count of peers growing slower than Emrock Corporation or faster than it, so those two measures cannot be stated.