Seshaasai Technologies Q2 FY27 results: net profit down 26.1% to ₹69.73 crore, revenue down 38.9%

How did Seshaasai Technologies perform in Q2 FY27?

Seshaasai Technologies reported consolidated revenue of ₹405.31 crore for Q2 FY27, up ₹28.84 crore or 7.7% from Q1 FY27 but down ₹257.90 crore or 38.9% from Q2 FY26. Operating EBITDA rose ₹13.31 crore or 15.2% sequentially to ₹100.62 crore, and its margin increased 1.6 percentage points to 24.8%.

Net profit was ₹69.73 crore, up ₹9.45 crore or 15.7% from Q1 FY27 but down ₹24.64 crore or 26.1% from Q2 FY26. Basic EPS was ₹4.25, against ₹3.73 in the previous quarter and ₹6.35 in the year-ago quarter. The standalone figures were revenue of ₹404.66 crore and PAT of ₹68.6 crore.

What changed in Seshaasai Technologies' costs and profit?

Total expenses fell ₹218.41 crore or 40.8% from Q2 FY26 to ₹317.25 crore. Cost of materials declined ₹139.39 crore or 37.4%, employee cost fell ₹14.15 crore or 44.8%, finance costs declined ₹13.38 crore or 87.7%, depreciation fell ₹11.97 crore or 52.9%, and other expenses decreased ₹48.52 crore or 47.1%. Other income rose ₹2.52 crore or 73.7% to ₹5.94 crore.

There was no exceptional item in either Q2 FY27 or Q2 FY26. Tax expense fell ₹12.36 crore or 33.8% to ₹24.24 crore, while profit before tax declined ₹36.97 crore or 28.2% to ₹94 crore. Management said lower finance costs following debt repayment supported profitability, and the presentation attributed year-on-year profit growth to revenue, better product mix and a significant reduction in finance cost.

Sequentially, total expenses rose ₹15.47 crore or 5.1%, led by a ₹4.55 crore increase in cost of materials and a ₹2.43 crore increase in other expenses. Other income fell ₹1.16 crore or 16.3%, while tax expense rose ₹2.74 crore or 12.7%. Management said Q2 gross margin recovered 89 bps sequentially but remained 331 bps below the year-ago quarter because material costs grew faster than revenue.

What do the balance sheet and cash flow show?

Total assets rose from ₹1667.23 crore on 31 March 2026 to ₹1776.05 crore on 30 September 2026, while total equity increased from ₹1425.97 crore to ₹1516.43 crore. Borrowings rose from ₹76.93 crore to ₹83.41 crore, and cash declined from ₹187.6 crore to ₹170.63 crore. Inventories increased from ₹188.24 crore to ₹263.66 crore, trade receivables fell from ₹329.03 crore to ₹313.54 crore, and trade payables rose from ₹104.66 crore to ₹105.23 crore.

For the first half of FY27, operating cash flow was ₹97.1 crore, against ₹43.17 crore in H1 FY26. Investing cash flow was negative ₹74.56 crore, compared with negative ₹68.33 crore, while financing cash flow was negative ₹39.91 crore against positive ₹490.52 crore. Capital expenditure was ₹149.71 crore, up from ₹57.26 crore.

How has Seshaasai Technologies done over the last 6 quarters?

Revenue peaked at ₹663.21 crore in Q2 FY26 and bottomed at ₹310.87 crore in Q1 FY26 before recovering to ₹405.31 crore in Q2 FY27. Net profit ranged from ₹36.84 crore in Q1 FY26 to ₹94.37 crore in Q2 FY26 and was ₹69.73 crore in the latest quarter. The latest revenue and profit were higher than Q1 FY27.

The EBITDA margin bottomed at 23.0% in Q1 FY26 and peaked at 29.3% in Q4 FY26. It fell to 23.2% in Q1 FY27 before recovering to 24.8% in Q2 FY27, indicating a sequential recovery after the preceding quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 29 October 2026. The statutory auditors conducted a limited review, and the company filed the results, a press release and an investor presentation under the applicable listing regulations.

The same-day presentation said payment solutions contributed 54% of revenue, communication and fulfilment solutions 32%, and IoT solutions 14%. It also reported that the company had won a multi-year tender from a PSU bank in Q2 FY27 and added new customers, but the filings did not announce a dividend, fund raise or appointment.

What did Seshaasai Technologies' management say?

Management maintained that H2 FY27 should outperform H1, citing card, mass-transit and IoT volumes. It expected FY27 IoT revenue to grow about 45% YoY, SIM-card capacity utilisation to be near 70–75% in October and November 2026, and a new metal-card facility intended to nearly triple current capacity to become operational soon.

Management said no eSIM revenue was included in the FY27 business plan, while it hoped for initial eSIM activity by year-end and revenue in the next financial year. It also said overseas customers were under discussion. The stated risks included USD-INR volatility, elevated fuel, logistics and petrochemical input costs, incomplete price pass-through, seasonal RFID demand, long semiconductor lead times and rising memory-chip prices.

No overall revenue or earnings range was provided, and no analyst questions were included in the available earnings-call record. The CFO attributed sequential margin improvement to better product mix, material-cost absorption and operating leverage, and said the company remained focused on financial discipline and efficient capital allocation.

How did Seshaasai Technologies shares react?

The filing appeared after market hours, and the stock was down 1.6% after 5 minutes, 2.3% after 15 minutes and 3.4% after 30 minutes. It closed 7.6% lower on the reaction day from the pre-results close and was down 8.5% by the next day's close on a cumulative basis.

How did other Financial Technology (Fintech) companies do?

Five other Financial Technology companies had filed for the quarter as of 4 November 2026. Their median revenue growth was 27.5%; five grew faster than Seshaasai Technologies and none grew slower, while profit increased at all five companies that were compared for profit.