Panache Digilife Q2 FY27 results: net profit ₹9.26 crore vs ₹1.42 crore, revenue ₹129.60 crore vs ₹39.06 crore

How did Panache Digilife perform in Q2 FY27?

Panache Digilife reported consolidated revenue of ₹129.60 crore in Q2 FY27, up ₹90.54 crore or 231.8% from ₹39.06 crore in Q2 FY26. Against Q1 FY27, revenue was higher by ₹78.76 crore or 154.9% from ₹50.84 crore. The results were announced on 23 October 2026, and the board also approved allotment of 1,60,300 equity shares of ₹10 each on conversion of warrants.

Consolidated EBITDA rose to ₹12.38 crore in Q2 FY27 from ₹2.51 crore a year earlier, a difference of ₹9.87 crore or 393.2%. The EBITDA margin expanded by 3.2 percentage points to 9.6% from 6.4%. Sequentially, EBITDA increased by ₹7.17 crore or 137.6% from ₹5.21 crore in Q1 FY27, while the margin was 0.6 percentage points lower at 10.2%.

Consolidated net profit was ₹9.26 crore in Q2 FY27, up ₹7.84 crore or 552.1% from ₹1.42 crore in Q2 FY26 and ₹5.64 crore or 155.8% from ₹3.62 crore in Q1 FY27. Basic EPS was ₹5.78, compared with ₹0.93 a year earlier and ₹2.26 in the previous quarter. On the standalone basis, revenue was ₹81.23 crore and profit after tax was ₹4.74 crore.

What changed in Panache Digilife's costs and profit?

Total expenses rose to ₹118.38 crore in Q2 FY27, up ₹80.84 crore or 215.3% from ₹37.54 crore in Q2 FY26. Cost of materials was the largest line, increasing by ₹92.12 crore or 259.5% to ₹127.62 crore, while other expenses rose by ₹2.98 crore or 273.4% to ₹4.07 crore. Employee cost increased by ₹0.07 crore or 3.9% to ₹1.86 crore.

Finance costs were ₹0.75 crore, up ₹0.06 crore or 8.7% from ₹0.69 crore in the year-ago quarter, and depreciation rose by ₹0.12 crore or 41.4% to ₹0.41 crore. Other income increased by ₹0.79 crore or 219.4% to ₹1.15 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26.

Profit before tax increased by ₹10.49 crore or 558.0% to ₹12.37 crore from ₹1.88 crore. Tax expense rose by ₹2.66 crore or 566.0% to ₹3.13 crore from ₹0.47 crore. The figures show higher revenue, higher other income and increased operating costs, but the filing does not state a further reason for the changes.

How did the first half of FY27 go?

In the first half of FY27, Panache Digilife reported consolidated revenue of ₹180.44 crore, up ₹111.84 crore or 163.0% from ₹68.6 crore in H1 FY26. Total income rose by ₹113.1 crore or 163.5% to ₹182.29 crore from ₹69.19 crore. The H1 FY27 figures were unaudited and the results were reviewed by the audit committee and approved by the board.

What do the balance sheet and cash flow show?

Total assets increased to ₹265.6 crore at 30 September 2026 from ₹227.53 crore at 31 March 2026, while total equity rose to ₹118.88 crore from ₹106.05 crore. Borrowings were higher at ₹33.88 crore against ₹24.72 crore, and cash and cash equivalents increased to ₹9.75 crore from ₹2.72 crore. Inventories rose to ₹85.87 crore from ₹41.85 crore, while trade receivables fell to ₹94.8 crore from ₹102.34 crore.

Trade payables were ₹82.4 crore at 30 September 2026, compared with ₹81.73 crore at 31 March 2026. In H1 FY27, operating cash flow was ₹2.68 crore against ₹3.4 crore in H1 FY26. Investing cash flow was negative ₹3.06 crore, compared with negative ₹6.13 crore, while financing cash flow was positive ₹3.82 crore against negative ₹2.02 crore; capital expenditure was ₹0.24 crore compared with ₹0.09 crore.

How has Panache Digilife done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters. Over the reported period, revenue reached its lowest point at ₹20.81 crore in Q3 FY25 and its highest at ₹129.60 crore in Q2 FY27. After falling from ₹99.9 crore in Q4 FY26 to ₹50.84 crore in Q1 FY27, revenue rose in the latest quarter, although the EBITDA margin declined to 9.6% from 10.2%.

PAT reached its lowest point at ₹0.84 crore in Q1 FY26 and its highest at ₹10.03 crore in Q4 FY26, before easing to ₹3.62 crore in Q1 FY27 and rising to ₹9.26 crore in Q2 FY27. Profit increased year on year in each of the last four quarters. The EBITDA margin bottomed at 5.9% in Q4 FY25, peaked at 16.2% in Q4 FY26 and stood at 9.6% in the latest quarter.

What did Panache Digilife's management say?

Management expects higher growth and said Q3 and Q4 are historically stronger, but did not provide a quantified FY27 or FY28 revenue target. It plans to give formal revenue, EBITDA-margin and PAT-margin guidance after a couple of quarters. Management also aims to improve operating EBITDA margin over the next couple of quarters through a better DLM-CLM mix, without giving a forward range.

The H1 FY27 revenue mix was about 40% DLM and 60% CLM, and management expects the annual mix to remain similar. Existing infrastructure offers roughly 40% additional capacity, with product values ranging from INR 2,000 to INR 2 lakh. A significant telecom contract is expected to run for approximately 36 months, but management withheld its value and revenue schedule.

Management identified electronic-component and dollar volatility, memory and component shortages, overseas sourcing exposure and a higher CLM mix as risks. It said sourcing is roughly 50% local on a book basis. Mrs. Neha Madiar said, “Ultimately, our objective is to move-up the value chain from manufacturing products to designing, developing and manufacturing complete technology solutions.”

Mr. Amit Rambhia said, “We are not in the position to discuss order books because of the current volatility of the markets right now.” He also said, “But yes, we are committing to CAPEX in our subsidiary for sure.” Management will commit capex at Technofy as customer demand is confirmed, but disclosed neither an amount nor a schedule.

How did Panache Digilife shares react?

Panache Digilife's shares closed 1.7% higher on the reaction day from the previous close of ₹652.7. By the next day's close, the stock was up 0.4% from the pre-results close, and by the fifth session it was down 2.9%. The IT Enabled Services industry median was unchanged on the reaction day and after five sessions, making Panache Digilife's excess returns 1.7 percentage points and negative 2.9 percentage points, respectively.

Earlier results-day reactions were mixed. The stock rose 5.0% on 10 August 2026 and 4.8% on 29 April 2026, but fell 4.8% on 12 February 2026. It also recorded declines of 1.2% on 11 November 2025, 2.0% on 7 August 2025 and 5.0% on 13 May 2025, following gains of 2.0% on 21 January 2025 and 2.0% on 11 November 2024.

How did other IT Enabled Services companies do?

Twenty-seven other IT Enabled Services companies had filed results for the quarter by 4 November 2026. Their median revenue growth was 22.5%. Of the other companies, 25 grew more slowly than Panache Digilife and 2 grew faster than Panache Digilife during the quarter.

Eighteen of the 24 peers for which profit was compared reported higher profit. Panache Digilife's Q2 FY27 revenue growth of 231.8% was above the peer median revenue growth of 22.5%.