Novus Loyalty Q2 FY27 results: net profit up 94.1% to ₹7.57 crore, revenue up 74.8%

How did Novus Loyalty perform in Q2 FY27?

Novus Loyalty’s standalone revenue for Q2 FY27 was ₹97.90 crore, compared with ₹56.01 crore in Q2 FY26, a rise of 74.8%. Total income increased to ₹98.86 crore from ₹56.30 crore, while EBITDA rose to ₹9.40 crore from ₹5.05 crore. The EBITDA margin was 9.6%, compared with 9.0% in the year-ago quarter, an increase of 0.6 percentage points.

Profit before tax was ₹10.15 crore in Q2 FY27 against ₹5.17 crore in Q2 FY26, while net profit increased to ₹7.57 crore from ₹3.90 crore. The PAT margin rose to 7.7% from 7.0%, and basic EPS was ₹4.87 compared with ₹3.15. The available data is on a standalone basis; no previous-quarter figures were provided.

What changed in Novus Loyalty's costs and profit?

Total expenses increased to ₹88.70 crore in Q2 FY27 from ₹51.12 crore in Q2 FY26, a rise of 73.5%. Employee cost was ₹2.70 crore, up ₹0.67 crore or 33.0%, while other expenses rose by ₹6.95 crore or 87.4% to ₹14.90 crore. Finance costs increased by ₹0.09 crore to ₹0.11 crore, and depreciation fell by ₹0.05 crore to ₹0.09 crore.

Other income increased by ₹0.67 crore to ₹0.96 crore, while tax expense rose by ₹1.31 crore to ₹2.59 crore. There was no exceptional item in either quarter. The filing and figures do not state reasons for the movements in the cost lines or other income.

Net profit rose by ₹3.67 crore to ₹7.57 crore, while profit before tax increased by ₹4.98 crore to ₹10.15 crore. Other income was ₹0.96 crore in Q2 FY27, compared with ₹0.29 crore in Q2 FY26, and the available figures show higher employee cost, finance cost, other expenses and tax alongside lower depreciation.

What do the balance sheet and cash flow show?

Total assets increased to ₹75.97 crore on 30 September 2026 from ₹72.37 crore on 31 March 2026, and total equity rose to ₹68.77 crore from ₹61.52 crore. The company reported no borrowings on either balance-sheet date. Cash and cash equivalents fell to ₹0.07 crore from ₹10.37 crore.

Inventories rose to ₹7.98 crore from ₹3.49 crore, while trade receivables increased to ₹2.80 crore from ₹1.87 crore. Trade payables rose to ₹0.84 crore from ₹0.18 crore. In H1 FY27, operating cash flow was negative ₹5.19 crore, compared with ₹12.34 crore in H1 FY26.

Investing cash flow was negative ₹2.29 crore in H1 FY27 against ₹0.30 crore in H1 FY26, and financing cash flow was negative ₹0.11 crore against ₹39.91 crore. Capital expenditure was ₹3.24 crore in H1 FY27, compared with ₹0.02 crore in H1 FY26.

What else did the company announce?

On 26 October 2026, the board approved the unaudited financial results for the half year ended 30 September 2026 and took on record the unmodified limited review reports submitted by L N Nangalya & Co. The board also appointed Mohit Singla & Associates as secretarial auditor for FY2026-27; no dividend or fund-raising approval was stated in the same-day filing excerpts.

A 27 October 2026 investor-presentation filing highlighted the quarter and half-year financial results and proposed an acquisition of AutoPay. The presentation stated that the proposed deal involved an 80.87% stake valued at around ₹130 crore, with management targeting a 17%–20% PAT margin and 15%–20% revenue growth for the acquired business.

What did Novus Loyalty's management say?

Management said H2 FY27 revenue should be at least in line with H1 FY27’s approximately ₹98 crore and could be higher. The company expects the proposed AutoPay business to grow at least 15%–20% year on year, with a sustainable PAT margin of 17%–20% in the longer run. Chairman and Managing Director Deepak Tomar said, “They will grow at a good pace as well, but their margins will stick between anything between 17% to 20% in a longer run.”

Management said Noxcy AI has 12 specialised agents but has not generated separate revenue yet. The company expects full cost break-even in approximately 1.5–2 years from October 2026 and expects clients to begin paying separately for the agents as the business model develops. Tomar said, “I think, to totally break even on the cost of Noxcy AI, it’s gonna take anything, between 1.5 to 2 years to break even on that cost.”

Management identified inventory growth as a risk as unbilled work, redemptions, commissions and unsold vouchers increase. It also said the AutoPay transaction requires about ₹40–45 crore by June 2027, partly through a planned preferential round, while international revenue targets include ₹7–8 crore in FY27 and ₹12–15 crore in FY28 from the UAE and broader Middle East.

Management expects organic growth of around 15% over the next 2–3 years, excluding AutoPay, and retains long-term consolidated revenue targets of approximately ₹500 crore in FY29 and ₹600–650 crore in FY30. Tomar said, “We always believe in a mix of organic and inorganic growth.”

How did Novus Loyalty shares react?

Novus Loyalty’s shares closed 2.8% lower on the reaction day from the pre-results close of ₹180.00. By the next day’s close, the stock was down 1.2% from that pre-results close, and by the fifth session it was down 2.8%. The available data do not include a five-, 15- or 30-minute reaction.

At the earlier results on 25 May 2026, Novus Loyalty’s shares closed 8.7% lower on the reaction day from the pre-results close. The available reaction data cover the reaction day and the next and fifth sessions for the Q2 FY27 filing.