Innovassynth Technologies Q2 FY27 results: net profit ₹1.50 crore vs ₹0.47 crore loss

How did Innovassynth Technologies perform in Q2 FY27?

Innovassynth Technologies reported standalone revenue of ₹47.55 crore for Q2 FY27, the July–September 2026 quarter, against ₹55.99 crore in Q1 FY27, a fall of ₹8.44 crore or 15.1%. Total income was ₹50.70 crore, down ₹5.48 crore or 9.8% from the previous quarter. The year-ago quarter, Q2 FY26, recorded ₹0 crore of revenue.

EBITDA for Q2 FY27 was ₹1.68 crore, down ₹13.29 crore or 88.8% from ₹14.97 crore in Q1 FY27, and the EBITDA margin fell 23.2 percentage points to 3.5%. Profit before tax was ₹1.64 crore against ₹11.16 crore in the previous quarter, and net profit was ₹1.50 crore against ₹6.74 crore, a fall of ₹5.24 crore or 77.7%. Basic EPS was ₹0.16 against ₹0.80.

Against Q2 FY26, revenue rose by ₹47.55 crore from ₹0 crore, and EBITDA moved from a loss of ₹0.13 crore to ₹1.68 crore, a change of ₹1.81 crore. PBT turned to ₹1.64 crore from a loss of ₹0.47 crore, and PAT turned to ₹1.50 crore from a loss of ₹0.47 crore. Basic EPS was ₹0.16 against a loss of ₹0.17. These are standalone figures.

What changed in Innovassynth Technologies' costs and profit?

Total expenses for Q2 FY27 were ₹49.06 crore, up ₹4.04 crore or 9.0% from ₹45.02 crore in Q1 FY27 and ₹48.81 crore or 19524.0% from ₹0.25 crore in the year-ago quarter. Cost of materials consumed was ₹22.63 crore, up ₹7.46 crore or 49.2% from ₹15.17 crore, and employee benefits expense was ₹10.62 crore, up ₹1.19 crore or 12.6% from ₹9.43 crore.

Other expenses were ₹14.75 crore, up ₹1.92 crore or 15.0% from ₹12.83 crore, while finance costs fell ₹0.87 crore or 43.5% to ₹1.13 crore from ₹2 crore. Depreciation and amortisation was ₹2.06 crore, up ₹0.06 crore or 3.0%. There was no exceptional item in Q2 FY27, against an exceptional charge of ₹0.21 crore in Q2 FY26.

Other income for Q2 FY27 was ₹3.15 crore, up ₹2.96 crore or 1557.9% from ₹0.19 crore in Q1 FY27, and ₹3.15 crore from ₹0 crore in the year-ago quarter. Tax was ₹0.14 crore, down ₹4.28 crore or 96.8% from ₹4.42 crore in the previous quarter. Management said EBITDA was affected mainly by sales scheduled for Q2 spilling into the following quarter and, to some extent, by higher raw-material costs due to geopolitical developments in West Asia.

How did the first half of FY27 go?

For the first half of FY27, revenue was ₹103.53 crore against ₹0 crore in H1 FY26, and total income was ₹106.88 crore against ₹0 crore. PBT was ₹12.8 crore against a loss of ₹0.69 crore in H1 FY26, an improvement of ₹13.49 crore, while PAT was ₹8.23 crore against a loss of ₹0.69 crore, an improvement of ₹8.92 crore.

Basic EPS for H1 FY27 was ₹0.93 against a loss of ₹0.25 in H1 FY26, a change of ₹1.18. The year-ago half-year figures are restated and include the erstwhile associate ITIL, which was merged into the company with effect from 1 October 2024 under a scheme approved by the National Company Law Tribunal on 14 November 2025.

What do the balance sheet and cash flow show?

Total assets rose to ₹288.63 crore at 30 September 2026 from ₹277.93 crore at 31 March 2026, and total equity rose to ₹171.74 crore from ₹94.49 crore. Borrowings fell to ₹30.15 crore from ₹102.28 crore, while cash rose to ₹1.5 crore from ₹0.34 crore. Inventories were ₹63.3 crore against ₹55.86 crore, trade receivables ₹31.42 crore against ₹31.41 crore, and trade payables ₹35.88 crore against ₹39.62 crore.

For H1 FY27, operating cash flow was ₹20.28 crore against a negative ₹0.45 crore in H1 FY26. Investing cash flow was negative ₹11.99 crore against ₹0 crore, and financing cash flow was ₹23.62 crore against ₹0.44 crore. Capital expenditure was ₹12.3 crore against ₹0 crore in the year-ago period.

How has Innovassynth Technologies done over the last 8 quarters?

Revenue rose from ₹21.97 crore in Q3 FY26 to ₹50.83 crore in Q4 FY26 and peaked at ₹55.99 crore in Q1 FY27 before falling to ₹47.55 crore in Q2 FY27. PAT moved from a loss of ₹7.8 crore in Q3 FY26 to ₹11.95 crore in Q4 FY26, then eased to ₹6.74 crore in Q1 FY27 and ₹1.5 crore in Q2 FY27.

The EBITDA margin reached 12.4% in Q4 FY26 and peaked at 26.7% in Q1 FY27 before falling to 3.5% in Q2 FY27, its lowest level in the reported series. Revenue recorded no revenue in the four quarters up to Q2 FY26, with PAT losses in each of those periods. The direction now is lower revenue, lower profit and a lower margin than the previous quarter.

What else did the company announce?

The Board approved the unaudited financial results for the quarter and half year ended 30 September 2026 on 2 November 2026, along with the limited review report issued by the statutory auditors. The results were reviewed by the Audit Committee, and the Board meeting ran from 4:10 p.m. to 7:45 p.m.

On the recommendation of the Nomination and Remuneration Committee, the Board approved the re-appointment of Dr. Hardik Joshipura as Managing Director and CEO for a further term of three years, from 12 February 2027 to 11 February 2030, subject to shareholder approval. The same-day filings did not announce a dividend or a fund raise.

What did Innovassynth Technologies' management say?

Management said EBITDA was impacted primarily by the spillover of certain sales scheduled for Q2 into the subsequent quarter and, to some extent, by higher costs of certain raw materials due to geopolitical developments in West Asia. It said CDMO revenues can be uneven across quarters depending on customer schedules, project milestones and commercialisation timelines, and that business performance is best assessed over a longer period.

Management said the order book stood at ₹137 crore as of 30 September 2026, providing revenue visibility for the coming quarters. It stated, "we believe H2 performance is likely to be better than H1." It also said major orders from USA/EU based companies had additional orders expected, and that Life Sciences capacity expansion largely remains on track and is expected to enhance the ability to support future customer requirements and growth opportunities.

Management identified risks around uneven CDMO revenue timing, the spillover of Q2 sales, higher raw-material costs linked to geopolitical developments in West Asia, dependence on China-based sourcing for critical raw materials, and planned shutdowns of approximately 10 days during the quarter. Debottlenecking, yield improvement, technology adoption and in-house development of critical raw materials were the stated execution priorities.

How did Innovassynth Technologies shares react?

The filing appeared after market hours. On the reaction day, the stock fell 2.0% from its previous close of ₹154.9, against a 0.0% median move for the Commodity Chemicals industry, leaving it 2.0 percentage points behind the sector. By the next day's close, the stock was up 0.0% from its pre-results close, while the industry median was up 0.7%, so it lagged the sector by 0.7 percentage points.

On the earlier result date of 29 May 2026, the stock's reaction-day move was 4.4%. The move in the first 5, 15 and 30 minutes after the filing was 0.0%. No five-day move was available for the Q2 FY27 result.

How did other Commodity Chemicals companies do?

Fifteen other Commodity Chemicals companies filed results for the quarter, with a median revenue growth of 19.1%. Of those compared, the number growing slower than Innovassynth Technologies was not given, and the number growing faster than the company was not given. Twelve of the peers reported higher profit, out of 17 compared for profit, as of 4 November 2026.