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- Q2 FY27 results
Shanthi Gears Q2 FY27 results: net profit down 27.0% to ₹15.71 crore, revenue down 3.0%
Shanthi Gears Limited reported standalone revenue of ₹127.99 crore in Q2 FY27, down 3.0% from ₹131.91 crore in Q2 FY26. EBITDA fell 14.4% to ₹22.70 crore and margin narrowed to 17.7%, while net profit declined 27.0% to ₹15.71 crore and basic EPS was ₹2.05; against Q1 FY27, revenue rose 10.8% and net profit rose 59.5%.
Key points
- Q2 FY27 revenue was ₹127.99 crore, down 3.0% from Q2 FY26 but up 10.8% from Q1 FY27.
- EBITDA was ₹22.70 crore, down 14.4% year on year, while margin fell 2.4 percentage points to 17.7%.
- Net profit was ₹15.71 crore, down 27.0% from Q2 FY26 and up 59.5% from Q1 FY27.
- Basic EPS was ₹2.05, compared with ₹2.81 in Q2 FY26 and ₹1.28 in Q1 FY27.
- In H1 FY27, revenue was ₹243.48 crore and net profit was ₹25.57 crore, down 8.7% and 42.1% respectively.
How did Shanthi Gears perform in Q2 FY27?
Shanthi Gears reported standalone revenue of ₹127.99 crore in Q2 FY27, down ₹3.92 crore, or 3.0%, from ₹131.91 crore in Q2 FY26. Against Q1 FY27, revenue was higher by ₹12.50 crore, or 10.8%, from ₹115.49 crore. Total income was ₹131.09 crore, down 4.9% year on year and up 9.6% from the previous quarter.
EBITDA was ₹22.70 crore, down ₹3.82 crore, or 14.4%, from ₹26.52 crore in Q2 FY26. Margin fell 2.4 percentage points to 17.7%, but improved 4.6 percentage points from 13.1% in Q1 FY27. Profit before tax was ₹20.21 crore and net profit was ₹15.71 crore, down 29.5% and 27.0% year on year, respectively.
Basic EPS was ₹2.05, down ₹0.76 from ₹2.81 in Q2 FY26 and up ₹0.77 from ₹1.28 in Q1 FY27. The results were standalone and unaudited. Consolidated financial results were not applicable because the company has no subsidiary, associate or joint venture, according to its filing.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 127.99 | 115.49 | 131.91 | −3.0% | +10.8% |
| Other income | 3.10 | 4.16 | 5.94 | −47.8% | −25.5% |
| Total expenses | 110.88 | 105.48 | 109.17 | +1.6% | +5.1% |
| EBITDA | 22.70 | 15.18 | 26.52 | −14.4% | +49.5% |
| EBITDA margin | 17.7% | 13.1% | 20.1% | −2.4 pp | +4.6 pp |
| Profit before tax | 20.21 | 14.17 | 28.68 | −29.5% | +42.6% |
| Tax | 4.50 | 4.32 | 7.17 | −37.2% | +4.2% |
| Net profit | 15.71 | 9.85 | 21.51 | −27.0% | +59.5% |
| EPS (₹) | 2.05 | 1.28 | 2.81 | −27.0% | +60.2% |
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 Shanthi Gears' costs and profit?
Total expenses rose ₹1.71 crore, or 1.6%, to ₹110.88 crore in Q2 FY26, while revenue fell 3.0%. Cost of materials consumed was ₹61.61 crore, up ₹0.11 crore, or 0.2%; employee benefit expense was ₹20.75 crore, up ₹0.20 crore, or 1.0%; and finance costs were ₹0.11 crore, compared with ₹0 crore.
Depreciation and amortisation expense increased ₹1.70 crore, or 45.0%, to ₹5.48 crore, while other expenses rose ₹2.30 crore, or 10.3%, to ₹24.66 crore. Other income declined ₹2.84 crore, or 47.8%, to ₹3.10 crore from ₹5.94 crore. These figures show the main reported changes in the cost and income lines.
There was no exceptional item in Q2 FY27 or Q2 FY26. Tax expense fell ₹2.67 crore, or 37.2%, to ₹4.50 crore from ₹7.17 crore. The company’s filing attributed the exceptional impact of ₹4.78 crore in the audited year ended 31 March 2026 primarily to a change in the wage definition under the new Labour Code.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 61.61 | 61.50 | +0.11 | +0.2% |
| Employee cost | 20.75 | 20.55 | +0.20 | +1.0% |
| Finance costs | 0.11 | 0 | +0.11 | |
| Depreciation | 5.48 | 3.78 | +1.70 | +45.0% |
| Other expenses | 24.66 | 22.36 | +2.30 | +10.3% |
| Total expenses | 110.88 | 109.17 | +1.71 | +1.6% |
| Other income | 3.10 | 5.94 | −2.84 | −47.8% |
| Tax | 4.50 | 7.17 | −2.67 | −37.2% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In H1 FY27, standalone revenue was ₹243.48 crore, down ₹23.32 crore, or 8.7%, from ₹266.80 crore in H1 FY26. Total income was ₹250.74 crore, down 9.3%, while profit before tax was ₹34.38 crore, down 42.0%.
Net profit for the first half was ₹25.57 crore, down ₹18.63 crore, or 42.1%, from ₹44.20 crore. Basic EPS declined to ₹3.33 from ₹5.76, a fall of ₹2.43 or 42.2%.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 243.48 | 266.80 | −8.7% |
| Profit before tax | 34.38 | 59.30 | −42.0% |
| Net profit | 25.57 | 44.20 | −42.1% |
| EPS (₹) | 3.33 | 5.76 | −42.2% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
Total assets were ₹564.44 crore at 30 September 2026, compared with ₹555.59 crore at 31 March 2026. Total equity was ₹449.65 crore, compared with ₹440.06 crore, while borrowings remained at ₹0 crore. Cash and cash equivalents were ₹2.70 crore, compared with ₹1.33 crore.
Inventories rose to ₹128.44 crore from ₹112.84 crore, while trade receivables fell to ₹96.40 crore from ₹115.62 crore. Trade payables declined to ₹63.96 crore from ₹72.45 crore. In H1 FY27, operating cash flow was ₹30.14 crore, compared with ₹50.86 crore in H1 FY26; investing cash flow was negative ₹13.12 crore, compared with negative ₹32.58 crore, and financing cash flow was negative ₹15.65 crore, compared with negative ₹15.34 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 564.44 | 555.59 |
| Total equity | 449.65 | 440.06 |
| Borrowings | 0 | 0 |
| Cash and equivalents | 2.70 | 1.33 |
| Inventories | 128.44 | 112.84 |
| Trade receivables | 96.40 | 115.62 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 30.14 | 50.86 |
| Cash from investing | −13.12 | −32.58 |
| Cash from financing | −15.65 | −15.34 |
| Capital expenditure | 17.42 | 19.35 |
Source: Company's results filing (XBRL).
How has Shanthi Gears done over the last 8 quarters?
Revenue peaked at ₹157.51 crore in Q3 FY25 and bottomed at ₹115.49 crore in Q1 FY27. It rose to ₹127.99 crore in Q2 FY27, while the EBITDA margin recovered to 17.7% from 13.1% in Q1 FY27. Net profit rose to ₹15.71 crore from ₹9.85 crore.
Across the reported series, net profit was highest at ₹26.28 crore in Q3 FY25 and lowest at ₹9.85 crore in Q1 FY27. EBITDA margin peaked at 22.6% in Q1 FY26 and bottomed at 13.1% in Q1 FY27 before recovering to 17.7% in Q2 FY27. Revenue and profit moved higher in the latest quarter after the Q1 FY27 lows.
Which businesses drove the quarter?
The filing states that there were no separate reportable segments under Ind AS 108; the company’s main business is the manufacture of gearboxes and gear products. Geographic figures reported revenue of ₹111.13 crore for India, ₹13.85 crore for America, ₹1.41 crore for Europe and ₹1.60 crore for Others.
India revenue was down 0.9% from ₹112.17 crore in Q2 FY26, while America increased 5.2% from ₹13.17 crore and Europe increased 53.3% from ₹0.92 crore. Others revenue fell 71.7% from ₹5.65 crore. Segment EBIT was reported at ₹0 crore for each geography.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| INDIA | 111.13 | −0.9% | 0 | 0.0% |
| AMERICA | 13.85 | +5.2% | 0 | 0.0% |
| EUROPE | 1.41 | +53.3% | 0 | 0.0% |
| OTHERS | 1.60 | −71.7% | 0 | 0.0% |
Source: Company's results filing (XBRL segment data).
How did Shanthi Gears shares react?
After the filing appeared, the stock moved down 3.6% after 5 minutes, down 3.9% after 15 minutes and down 4.8% after 30 minutes. From the previous close, it closed down 0.8% on the reaction day. By the next day’s close, the stock was up 4.1% from its pre-results close, and by the fifth session it was down 2.2%.
The Industrial Products sector’s median move was down 0.3% on the reaction day, up 1.5% by the next day and up 1.8% by five days. Shanthi Gears’ excess moves were down 0.6 percentage points on the reaction day, up 2.6 percentage points by the next day and down 4.0 percentage points by five days. Earlier results-day moves were mixed, including 16.1% on 22 January 2026 and 19.4% on 30 January 2025.
| After the filing | Stock | Industrial Products median |
|---|---|---|
| 5 minutes | −3.6% | |
| 15 minutes | −3.9% | |
| 30 minutes | −4.8% | |
| Reaction day | −0.8% | −0.3% |
| Next day | +4.1% | +1.5% |
| 5 days | −2.2% | +1.8% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 29 July 2026 | −1.1% |
| 5 May 2026 | −4.9% |
| 22 January 2026 | +16.1% |
| 24 October 2025 | −1.1% |
| 30 July 2025 | −4.8% |
| 30 January 2025 | +19.4% |
| 22 October 2024 | −1.2% |
| 29 July 2024 | −1.1% |
Source: MarketPing price-reaction measurement.
How did other Industrial Products companies do?
Thirty-eight other Industrial Products companies had filed for the quarter as of 4 November 2026. Their median revenue growth was 35.8%. Five peers grew more slowly than Shanthi Gears, while 33 peers grew faster than the company. Among the 32 peers for which profit was compared, 24 reported higher profit.
| Shanthi Gears revenue growth (YoY) | −3.0% |
|---|---|
| Median of 38 other Industrial Products companies | +35.8% |
| Companies with slower revenue growth than Shanthi Gears | 5 of 38 |
| Companies with faster revenue growth than Shanthi Gears | 33 of 38 |
| Companies whose net profit rose | 24 of 32 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Shanthi Gears' revenue in Q2 FY27?
Revenue from operations was ₹127.99 crore, down 3.0% from ₹131.91 crore in Q2 FY26 (standalone).
Did Shanthi Gears make a profit in Q2 FY27?
Yes. Net profit was ₹15.71 crore, against a net profit of ₹21.51 crore in Q2 FY26.
What was Shanthi Gears' EPS in Q2 FY27?
Basic earnings per share were ₹2.05, against ₹2.81 in Q2 FY26.
How did Shanthi Gears shares react to the Q2 FY27 results?
On the reaction day the stock moved −0.8% from the previous close; the median Industrial Products stock moved −0.3%.
When did Shanthi Gears announce its Q2 FY27 results?
On 26 October 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for Considering And Approving The Unaudited Financial Results Of The Company For The Half Yearly Ended September 2026 (BSE, 14 October 2026) · PDF
- Board Meeting Outcome for Board Meeting Outcome For Unaudited Standalone Financial Results For The Quarter And Half Year Ended 30Th September, 2026 (BSE, 26 October 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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