Shera Energy Q2 FY27 results: net profit up 102.3% to ₹30.77 crore, revenue up 34.2%

How did Shera Energy perform in Q2 FY27?

Shera Energy reported consolidated revenue of ₹1,047 crore for Q2 FY27, up 34.2% from ₹780.64 crore in Q2 FY26. EBITDA was ₹64.68 crore, up 64.1%, and the margin rose to 6.2% from 5.0%. Profit before tax increased to ₹41.85 crore from ₹21.12 crore.

The company reported a net profit of ₹30.77 crore for Q2 FY27, up 102.3% from ₹15.21 crore in the year-ago quarter. Profit attributable to owners was ₹24.54 crore, up 104.2%, while basic EPS increased to ₹10.04 from ₹4.92.

Against Q1 FY27, revenue rose 114.8% to ₹1,047 crore from ₹487.67 crore. EBITDA increased to ₹64.68 crore from ₹28.01 crore, the margin rose to 6.2% from 5.7%, and net profit increased to ₹30.77 crore from ₹12.64 crore.

On the standalone basis, Shera Energy reported revenue of ₹625.3 crore and profit after tax of ₹11.1 crore for the quarter. The consolidated results also included a basic EPS of ₹10.04.

What changed in Shera Energy's costs and profit?

Revenue rose by ₹266.76 crore from the year-ago quarter, while total expenses increased by ₹250.12 crore to ₹1,012 crore. Cost of materials was the largest cost line at ₹1,025 crore, up ₹280.07 crore, while other expenses were ₹32.80 crore, up ₹8.85 crore.

Employee cost increased by ₹6.26 crore to ₹17.74 crore, finance costs rose by ₹8.27 crore to ₹25.23 crore, and depreciation was ₹3.69 crore, up ₹0.37 crore. Other income increased by ₹4.10 crore to ₹6.10 crore. There was no exceptional item in either quarter.

Tax expense rose by ₹5.17 crore to ₹11.08 crore from ₹5.91 crore in Q2 FY26, while profit before tax increased by ₹20.73 crore to ₹41.85 crore. EBITDA rose by ₹25.27 crore to ₹64.68 crore, and the EBITDA margin increased by 1.2 percentage points to 6.2%.

The filing did not provide a specific explanation for the movement in the cost lines or tax. The figures show that the increase in cost of materials was higher than the increase in total income, while other income also rose.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹982.44 crore, compared with ₹793.2 crore at 31 March 2026. Total equity rose to ₹292.44 crore from ₹248.18 crore, while borrowings increased to ₹310.37 crore from ₹261.89 crore. Cash was ₹5.97 crore, compared with ₹5.03 crore.

Inventories rose to ₹408.77 crore from ₹321.98 crore, trade receivables increased to ₹238.01 crore from ₹199.03 crore, and trade payables rose to ₹213.97 crore from ₹188.12 crore. The balance-sheet comparison is between 30 September 2026 and 31 March 2026.

For H1 FY27, operating cash flow was negative ₹14.89 crore, compared with negative ₹12.52 crore in H1 FY26. Investing cash flow was negative ₹47.6 crore, compared with negative ₹34.3 crore, while financing cash flow was positive ₹63.43 crore, compared with negative ₹9.53 crore.

Capital expenditure was ₹17.34 crore in H1 FY27, lower than ₹28.83 crore in H1 FY26. The cash-flow statement also showed a negative operating cash flow of ₹14.89 crore for the half year ended 30 September 2026.

How has Shera Energy done over the last 7 quarters?

Shera Energy’s quarterly revenue reached ₹1,047 crore in Q2 FY27, the highest level in the reported period. The lowest was ₹386.74 crore in Q1 FY26, while revenue had also been lower in Q3 FY26 at ₹396.59 crore and Q1 FY27 at ₹487.67 crore.

Net profit rose to ₹30.77 crore in Q2 FY27 from ₹12.64 crore in Q1 FY27. The reported quarterly profit was lower at ₹7.05 crore in Q1 FY26 and ₹9.4 crore in Q3 FY26, while the earlier high was ₹21.76 crore in Q4 FY26.

The EBITDA margin increased to 6.2% in Q2 FY27 from 5.7% in Q1 FY27. It was 4.5% in Q4 FY25, 4.8% in Q1 FY26, 5.0% in Q2 FY26, 5.6% in Q3 FY26 and 5.6% in Q4 FY26.

Revenue and profit increased year on year in each of the last three quarters, according to the reported streak. The latest quarter showed higher revenue, net profit and EBITDA margin than both the previous quarter and the year-ago 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, along with the limited review report. It also approved a proposal to incorporate a wholly owned subsidiary in Dubai, UAE, with investment of up to USD 5 million.

The Dubai subsidiary is proposed to conduct trading and warehousing of non-ferrous metals, electrical equipment, raw materials and related products. The investment will be in cash and is subject to applicable statutory, regulatory, overseas investment and foreign-exchange requirements. Shera Energy will hold 100% of the subsidiary’s capital contribution.

The board also noted an advisory letter from NSE dated 28 October 2026 and the demise of independent director Vekas Kumar Garg, along with the related changes in the composition of the board and its committees. The same-day filings did not announce a dividend or a fund raise.

What did Shera Energy's management say?

On the earnings call, Chairman and Managing Director Naseem Sheikh said the group had crossed INR1,000 crores of revenue in a single half for the first time in its history. Management said the H1 FY27 result reflected demand from transformers and power-equipment manufacturers and the contribution of new value-added businesses, while Shera Zambia had not yet entered commercial production.

Management set an FY30 ambition of 20–30% annual revenue growth, driven by new capacities, new value-added products and exports. It also said FY27 monthly sales were being maintained at roughly INR200 crore if metal-price volatility stayed within ±10%, with roughly 30–35% CAGR in quantity.

Management said CTC installed capacity was 120–150 tonnes per month, with full-scale production targeted by the end of FY27. The call indicated 30% utilisation by end-FY27 and 80–90% utilisation after Power Grid approvals, while large-scale output was expected in about three months.

Management said Shera Zambia was targeted to begin commercial production in Q4 FY27, generate INR90–130 crore of revenue in its first full year at 15–20%+ EBITDA, and potentially reach INR400–500 crore in about two years after expansion. The Dubai unit was expected to be set up in 2–3 months, with African access in 6–7 months thereafter.

Management identified metal-price volatility, the Zambia ramp and ore recovery, pending Power Grid approvals, Middle East disruption, freight costs, and merger and Dubai approvals as risks. The company also said a merger was expected to complete in FY27–FY28.

How did Shera Energy shares react?

After the filing appeared, the stock was up 2.7% after 5 minutes, while it was down 0.2% after 15 minutes and 30 minutes. On the reaction day, it closed 6.4% above the previous close of ₹169.00.

By the next day’s close, the stock was up 7.7% from its pre-results close. The Nifty Microcap 250 was up 1.4% on the reaction day and 1.7% by the next day’s close. No five-day or one-month reaction was available, and no industry-median comparison was provided.