JTL Defence Q2 FY27 results: net loss of ₹2.63 crore vs ₹1.56 crore profit

How did JTL Defence perform in Q2 FY27?

JTL Defence reported consolidated revenue of ₹19.71 crore for Q2 FY27, up 450.6% from ₹3.58 crore in Q2 FY26 but down 7.2% from ₹21.24 crore in Q1 FY27. EBITDA rose to ₹2.25 crore from ₹1.12 crore a year earlier, while the margin fell to 11.4% from 31.2%.

Against Q1 FY27, EBITDA was lower by ₹0.21 crore at ₹2.25 crore, and the margin declined by 0.2 percentage points from 11.6%. The company reported a net loss of ₹2.63 crore and basic EPS of ₹2.50, compared with a net loss of ₹2.67 crore and basic EPS of ₹2.54 in Q1 FY27.

On a standalone basis, Q2 FY27 revenue was ₹19.71 crore and the company reported a net loss of ₹2.63 crore. In the year-ago quarter, standalone revenue was ₹3.58 crore and profit before tax was ₹1.56 crore.

What changed in JTL Defence's costs and profit?

Total expenses rose by ₹18.64 crore year on year to ₹22.29 crore, from ₹3.65 crore in Q2 FY26. Cost of materials was ₹18.73 crore against ₹0 crore, while depreciation increased by ₹2.84 crore to ₹4.03 crore and finance costs increased by ₹0.80 crore to ₹0.80 crore.

Other income fell by ₹1.67 crore to no other income, from ₹1.67 crore in Q2 FY26. Employee cost was unchanged at ₹0.17 crore, other expenses fell by ₹1.29 crore to ₹1 crore, and tax increased by ₹0.02 crore to ₹0.05 crore. There was no exceptional item.

Against Q1 FY27, total expenses fell by ₹1.38 crore to ₹22.29 crore, even as cost of materials rose by ₹2.99 crore to ₹18.73 crore. Other expenses fell by ₹0.47 crore to ₹1 crore, finance costs fell by ₹0.11 crore to ₹0.80 crore and tax fell by ₹0.20 crore to ₹0.05 crore. There was no exceptional item.

How did the first half of FY27 go?

In the first half of FY27, JTL Defence reported consolidated revenue of ₹40.96 crore, compared with ₹3.58 crore in H1 FY26, an increase of 1044.1%. Total income was ₹40.96 crore, up from ₹5.25 crore in H1 FY26.

The company reported a loss before tax of ₹5.0 crore in H1 FY27, compared with ₹1.35 crore in H1 FY26, and a net loss of ₹5.3 crore compared with ₹1.4 crore. Basic EPS was ₹5.04; no comparable EPS figure was provided for H1 FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹334.76 crore, compared with ₹330.47 crore at 31 March 2026. Total equity was ₹192.31 crore against ₹196.21 crore, while borrowings rose to ₹66.14 crore from ₹59.82 crore and cash rose to ₹0.61 crore from ₹0.19 crore.

Inventories were ₹37.02 crore at 30 September 2026, compared with ₹33.65 crore at 31 March 2026. Trade receivables were ₹23.95 crore against ₹20.27 crore, and trade payables were ₹27.76 crore against ₹25.01 crore.

H1 FY27 operating cash flow was ₹2.09 crore, compared with an outflow of ₹0.11 crore in H1 FY26. Investing cash flow was an outflow of ₹6.29 crore against an inflow of ₹0.01 crore, financing cash flow was an inflow of ₹4.62 crore against ₹0 crore, and capital expenditure was ₹6.29 crore against ₹0 crore.

How has JTL Defence done over the last 8 quarters?

Revenue reached its highest level in the reported series in Q1 FY27 at ₹21.24 crore before declining to ₹19.71 crore in Q2 FY27. It had been ₹3.58 crore in Q2 FY26 and ₹15.24 crore in Q4 FY26, showing a rise across the more recent quarters followed by sequential moderation.

Reported profit was highest in Q4 FY26 at ₹1.7 crore, compared with ₹1.56 crore in Q2 FY26. It then moved to a loss of ₹2.67 crore in Q1 FY27 and a loss of ₹2.63 crore in Q2 FY27.

The EBITDA margin peaked at 256.0% in Q3 FY26 and fell to 24.2% in Q4 FY26, 11.6% in Q1 FY27 and 11.4% in Q2 FY27. Revenue and profit both moved into losses in Q1 FY27, while the revenue decline and loss narrowed slightly in Q2 FY27.

What did the auditors point out?

The independent auditor’s limited review concluded that nothing had come to its attention causing it to believe that the standalone and consolidated unaudited financial results had not disclosed information required under Regulation 33 of the Listing Regulations or contained any material misstatement. The review was conducted under SRE 2410 and was substantially less in scope than an audit, so the auditor did not express an audit opinion.

The auditor included an Emphasis of Matter concerning the recovery of financial assets, including trade receivables, debtors, securities and other recoveries outstanding from the Insolvency Resolution Proceedings. Management was actively following up with debtors and other parties, and said appropriate adjustments, write-offs or provisions might be made if balances remained unrecovered during FY27.

The emphasis also covered tax notices for periods before the NCLT resolution order, long-standing investments of ₹1,186.17 lakhs with pending confirmations, and other matters whose final outcome and impact on the financial results were not presently ascertainable.

What did JTL Defence's management say?

Management said it planned to scale operations to restore revenue levels achieved during FY17–19 over the next 2–3 years. It also said it would improve capacity utilisation by the end of FY27 while increasing the share of value-added products, and enhance operational capabilities through planned capacity expansion with support from JTL Industries.

Management identified volume growth, a higher contribution from value-added products, OEM relationships, product innovation and export demand as growth drivers. It also identified the sequential revenue decline, margin compression, reported losses, liquidity and working-capital requirements, and revenue recovery as risks.

Management said the Baddi manufacturing platform had 20,000 MTPA of capacity for non-ferrous and value-added products. Capital work in progress increased to ₹96 Mn at 30 September 2026 from ₹44 Mn at 31 March 2026.

How did JTL Defence shares react?

The filing was released after market hours. The stock showed no movement in the first 5, 15 and 30 minutes after the filing appeared, then closed 2.0% below its pre-results close on the reaction day.

By the next day’s close, the stock was down 4.0% from its pre-results close. By the fifth session’s close, it was down 7.8% from that close. No earlier results-day moves were provided for comparison.

The Nifty Microcap 250 was up 0.4% on the reaction day, up 2.1% by the next day’s close and up 1.8% by the fifth session’s close. No industry median was available for comparison.