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Sadbhav Engineering Q2 FY27 results: net profit up 137.8% to ₹63.87 crore, revenue down 9.3%
Sadbhav Engineering Limited reported consolidated Q2 FY27 revenue of ₹226.67 crore and net profit of ₹63.87 crore. Revenue fell 9.3% from a year earlier, while profit before tax rose 120.4% and the EBITDA margin increased 11.0 percentage points to 69.9%.
Key points
- Consolidated Q2 FY27 revenue was ₹226.67 crore, down 9.3% from ₹249.89 crore in Q2 FY26.
- EBITDA rose 7.5% to ₹158.41 crore, while the EBITDA margin increased 11.0 percentage points to 69.9%.
- Profit before tax rose 120.4% to ₹77.20 crore and net profit rose 137.8% to ₹63.87 crore.
- Basic EPS increased to ₹1.59 from ₹0.33 in the year-ago quarter.
- H1 FY27 revenue fell 8.7% to ₹430.71 crore, but net profit rose 89.5% to ₹109.97 crore.
How did Sadbhav Engineering perform in Q2 FY27?
Sadbhav Engineering reported consolidated revenue of ₹226.67 crore for Q2 FY27, against ₹249.89 crore in Q2 FY26 and ₹204.04 crore in Q1 FY27. EBITDA was ₹158.41 crore, compared with ₹147.29 crore a year earlier and ₹152.84 crore in the previous quarter. The EBITDA margin was 69.9%, up 11.0 percentage points year on year but down 5.0 percentage points sequentially.
Consolidated profit before tax rose to ₹77.20 crore from ₹35.03 crore in Q2 FY26 and ₹59.94 crore in Q1 FY27. Net profit was ₹63.87 crore, against ₹26.86 crore a year earlier and ₹46.10 crore in the previous quarter; basic EPS was ₹1.59, compared with ₹0.33 and ₹0.91, respectively. On a standalone basis, revenue was ₹36.93 crore and the company reported a net loss of ₹8.6 crore.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 226.67 | 204.04 | 249.89 | −9.3% | +11.1% |
| Other income | 14.55 | 20.96 | 55.49 | −73.8% | −30.6% |
| Total expenses | 164.20 | 154.24 | 275.32 | −40.4% | +6.5% |
| EBITDA | 158.41 | 152.84 | 147.29 | +7.5% | +3.6% |
| EBITDA margin | 69.9% | 74.9% | 58.9% | +11.0 pp | −5.0 pp |
| Profit before tax | 77.20 | 59.94 | 35.03 | +120.4% | +28.8% |
| Tax | 13.33 | 14.05 | 13.86 | −3.8% | −5.1% |
| Net profit | 63.87 | 46.10 | 26.86 | +137.8% | +38.5% |
| EPS (₹) | 1.59 | 0.91 | 0.33 | +381.8% | +74.7% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Sadbhav Engineering's costs and profit?
Total expenses fell to ₹164.20 crore in Q2 FY27 from ₹275.32 crore in Q2 FY26, a decline of 40.4%. Finance costs were lower by 57.5% at ₹59.72 crore, while other expenses decreased by 36.8% to ₹58.09 crore. Employee cost was ₹10.14 crore and cost of materials was ₹0.03 crore; depreciation was higher at ₹36.22 crore.
Other income declined to ₹14.55 crore from ₹55.49 crore, while the quarter recorded an exceptional gain of ₹0.18 crore against an exceptional gain of ₹4.97 crore in Q2 FY26. Tax expense was ₹13.33 crore, down 3.8% from ₹13.86 crore. Despite lower other income, the reduction in finance costs and other expenses lifted profit before tax by ₹42.17 crore year on year.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 0.03 | 0.37 | −0.34 | −91.9% |
| Employee cost | 10.14 | 10.25 | −0.11 | −1.1% |
| Finance costs | 59.72 | 140.44 | −80.72 | −57.5% |
| Depreciation | 36.22 | 32.28 | +3.94 | +12.2% |
| Other expenses | 58.09 | 91.98 | −33.89 | −36.8% |
| Total expenses | 164.20 | 275.32 | −111.12 | −40.4% |
| Other income | 14.55 | 55.49 | −40.94 | −73.8% |
| Tax | 13.33 | 13.86 | −0.53 | −3.8% |
| Exceptional items | +0.18 (gain) | +4.97 (gain) |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In H1 FY27, consolidated revenue was ₹430.71 crore, down 8.7% from ₹471.87 crore in H1 FY26, while total income fell 15.3% to ₹466.22 crore from ₹550.48 crore. Profit before tax rose 76.0% to ₹137.14 crore from ₹77.93 crore.
Net profit for the first half increased 89.5% to ₹109.97 crore from ₹58.04 crore. Basic EPS rose to ₹2.50 from ₹1.04 in H1 FY26. The filing does not state why revenue declined or profit increased for the half year.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 430.71 | 471.87 | −8.7% |
| Profit before tax | 137.14 | 77.93 | +76.0% |
| Net profit | 109.97 | 58.04 | +89.5% |
| EPS (₹) | 2.50 | 1.04 | +140.4% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, consolidated total assets were ₹5,492.04 crore, down from ₹5,860.28 crore at 31 March 2026. Total equity was ₹102.29 crore compared with negative ₹9.13 crore at the previous balance-sheet date, while borrowings fell to ₹3,033.65 crore from ₹3,263.87 crore. Cash declined to ₹27.45 crore from ₹79.67 crore.
H1 FY27 operating cash flow was ₹355.27 crore, compared with ₹368.94 crore in H1 FY26. Investing cash flow was negative ₹51.62 crore against negative ₹11.01 crore, and financing cash flow was negative ₹355.87 crore against negative ₹335.34 crore. Capital expenditure was ₹0.00 crore in H1 FY27 and ₹0.91 crore in H1 FY26.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 5,492 | 5,860 |
| Total equity | 102.29 | −9.13 |
| Borrowings | 3,034 | 3,264 |
| Cash and equivalents | 27.45 | 79.67 |
| Inventories | 1.12 | 1.11 |
| Trade receivables | 294.86 | 279.80 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 355.27 | 368.94 |
| Cash from investing | −51.62 | −11.01 |
| Cash from financing | −355.87 | −335.34 |
| Capital expenditure | 0 | 0.91 |
Source: Company's results filing (XBRL).
How has Sadbhav Engineering done over the last 8 quarters?
Revenue reached its highest level in the reported series in Q4 FY25 at ₹289.78 crore and its lowest in Q1 FY27 at ₹204.04 crore. It subsequently rose to ₹226.67 crore in Q2 FY27. Net profit bottomed at a loss of ₹165.33 crore in Q4 FY25 and peaked at ₹121.33 crore in Q4 FY26 before falling to ₹46.10 crore and then rising to ₹63.87 crore.
The EBITDA margin peaked at 74.9% in Q1 FY27 and bottomed at 26.3% in Q4 FY26, before easing to 69.9% in Q2 FY27. Revenue increased sequentially for the second quarter, while net profit also rose, extending the year-on-year profit increase to two quarters.
What else did the company announce?
On 4 November 2026, the board approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026, together with a limited review report carrying a modified opinion. The board also approved the resignation of statutory auditors Manubhai & Shah LLP with effect from 4 November 2026.
The auditor said its client acceptance and continuance policy did not permit it to continue because of the significant reduction in the company’s operational activities, coupled with matters stated in the qualified opinion or conclusion on the company’s financial statements and results. It stated there was no other material reason for its resignation. The same-day filings did not announce a dividend, fund raise or other appointment.
What did the auditors point out?
The statutory auditors expressed a qualified conclusion on the consolidated financial results for the quarter and half year ended 30 September 2026, and a qualified opinion on the financial statements for the year ended 31 March 2026, concerning the recoverability of the outstanding loan, trade receivables and other receivables from RPTPL. The report also referred to contract assets of ₹35019.52 lakhs and other non-current financial assets of ₹10548.29 lakhs outstanding at 30 September 2026.
The auditors said the company had incurred losses during preceding years and experienced delays or defaults in servicing debt obligations, payment of certain statutory and other dues, and a reduction in revenue from operations. This indicated a material uncertainty that could cast significant doubt on its ability to continue as a going concern. Management considered the going-concern assumption appropriate, citing implementation of the restructuring plan, debt restructuring, expected realisation of receivables and other assets, efforts to secure new business, and projected cash flows.
Quick answers
What was Sadbhav Engineering's revenue in Q2 FY27?
Revenue from operations was ₹226.67 crore, down 9.3% from ₹249.89 crore in Q2 FY26 (consolidated).
Did Sadbhav Engineering make a profit in Q2 FY27?
Yes. Net profit was ₹63.87 crore, against a net profit of ₹26.86 crore in Q2 FY26.
What was Sadbhav Engineering's EPS in Q2 FY27?
Basic earnings per share were ₹1.59, against ₹0.33 in Q2 FY26.
When did Sadbhav Engineering announce its Q2 FY27 results?
On 4 November 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for Prior Intimation Of Board Meeting Schedule To Be Held On November 04, 2026. (BSE, 28 October 2026) · PDF
- Board Meeting Outcome for Outcome Of Board Meeting Held On November 04, 2026. (BSE, 4 November 2026) · PDF
- Results - Financial Results For Quarter And Half Year Ended On September 30, 2026 (BSE, 4 November 2026) · PDF
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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