SONAM Q2 FY27 results: net profit ₹3.76 crore vs ₹0.90 crore, revenue ₹129.39 crore vs ₹31.32 crore

How did SONAM perform in Q2 FY27?

Sonam reported standalone revenue of ₹129.39 crore in Q2 FY27, up ₹98.07 crore or 313.1% from ₹31.32 crore in Q2 FY26. Total income rose 313.7% to ₹130.12 crore from ₹31.45 crore, while total expenses increased 314.1% to ₹125.15 crore from ₹30.22 crore.

EBITDA for the quarter was ₹5.83 crore, up ₹3.59 crore or 160.3% from ₹2.24 crore, but EBITDA margin fell 2.7 percentage points to 4.5% from 7.2%. Profit before tax was ₹4.97 crore, up ₹3.74 crore from ₹1.23 crore, and net profit was ₹3.76 crore, up ₹2.86 crore or 317.8% from ₹0.90 crore. Basic EPS was ₹0.94 against ₹0.23 in the year-ago quarter.

Against Q1 FY27, revenue rose ₹62.82 crore or 94.4% from ₹66.57 crore, and total expenses increased 99.3% to ₹125.15 crore from ₹62.78 crore. EBITDA rose ₹0.70 crore or 13.6% to ₹5.83 crore from ₹5.13 crore, while EBITDA margin fell 3.2 percentage points to 4.5% from 7.7%. PBT was ₹4.97 crore against ₹4.05 crore, net profit ₹3.76 crore against ₹3 crore, and basic EPS ₹0.94 against ₹0.75. The results are on a standalone basis.

What changed in SONAM's costs and profit?

Total expenses rose ₹94.93 crore or 314.1% to ₹125.15 crore from ₹30.22 crore in Q2 FY26. Cost of materials fell ₹1.55 crore or 19.1% to ₹6.56 crore from ₹8.11 crore, and employee cost fell ₹0.19 crore or 12.7% to ₹1.31 crore from ₹1.50 crore. Other expenses rose ₹2.89 crore or 129.6% to ₹5.12 crore from ₹2.23 crore, finance costs rose ₹0.41 crore or 95.3% to ₹0.84 crore from ₹0.43 crore, and depreciation rose ₹0.04 crore or 5.6% to ₹0.75 crore from ₹0.71 crore.

Other income rose ₹0.60 crore or 461.5% to ₹0.73 crore from ₹0.13 crore, and tax expense rose ₹0.89 crore or 269.7% to ₹1.22 crore from ₹0.33 crore. There was no exceptional item in either quarter. The PAT margin was unchanged at 2.9% against Q2 FY26.

Management said raw-material prices rose in the market, but the company focused on the business by giving special schemes and special discounts to grow revenue, and said total profit and income increased while net profit was slightly less. Management also said freight cost increased in exports, which had an effect on exports and on the manufacturing level, and that the price of crude oil increased in the market.

How did the first half of FY27 go?

In H1 FY27, Sonam reported revenue of ₹195.96 crore, up ₹126.74 crore or 183.1% from ₹69.22 crore in H1 FY26. Total income was ₹196.95 crore, up ₹127.14 crore or 182.1% from ₹69.81 crore.

Profit before tax for the first half was ₹9.02 crore, up ₹6.01 crore or 199.7% from ₹3.01 crore, and PAT was ₹6.76 crore, up ₹4.54 crore or 204.5% from ₹2.22 crore. Basic EPS for the half year was ₹1.69 against ₹0.56 in H1 FY26, up ₹1.13 or 201.8%.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹135.41 crore against ₹114.86 crore at 31 March 2026, and total equity was ₹78.24 crore against ₹71.48 crore. Borrowings rose to ₹30.25 crore from ₹21.23 crore, and cash was ₹0.48 crore against ₹0.10 crore.

Inventories were ₹36.70 crore at the end of Q2 FY27 against ₹35.99 crore at 31 March 2026. Trade receivables rose to ₹19.44 crore from ₹8.12 crore, while trade payables were ₹19.69 crore against ₹14.37 crore.

In H1 FY27, operating cash flow was negative ₹7.21 crore against positive ₹1.33 crore in H1 FY26. Investing cash flow was positive ₹1.11 crore against negative ₹1.71 crore, and financing cash flow was positive ₹6.35 crore against positive ₹0.26 crore. Capital expenditure was ₹0.00 crore in H1 FY27 against ₹0.94 crore in H1 FY26.

How has SONAM done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters and reached a period high of ₹129.39 crore in Q2 FY27. It was at its lowest at ₹25.29 crore in Q3 FY25, and it also stood at ₹66.57 crore in Q1 FY27, the quarter immediately before the reported period.

Net profit for the quarter was ₹3.76 crore, against a low of ₹0.90 crore in Q2 FY26 and ₹3 crore in Q1 FY27. Profit has risen year on year in each of the last four quarters, though the quarterly increase was smaller than the revenue increase in Q2 FY27.

EBITDA margin peaked at 15.7% in Q3 FY25 and fell to 4.5% in Q2 FY27, its lowest point in the series, from 7.7% in Q1 FY27 and 7.2% in Q2 FY26. The direction now is lower, even as revenue and profit were higher than a year earlier.

What did SONAM's management say?

Management expects FY27 revenue of ₹300 crore to ₹350 crore and a minimum PAT of ₹12 crore to ₹14 crore, and said profit was expected to grow by 40%-50% while linking margin protection to higher turnover and market schemes. It did not give a numerical EBITDA-margin range. Management also said turnover in the next two quarters would be 30%-40% more than expected and that margins would increase. Jayeshbhai Chhabildas Shah, Chairman and Managing Director, said: "In the next two quarters, we hope that the turnover will increase by 30% to 40% more than what we expected. And the margin will also increase."

Management said growth was led by domestic trading and clock-movement sales, and that only ₹19 crore to ₹20 crore of H1 revenue came from actual manufacturing. It said the average margin on imported goods was 3% to 4%, while manufacturing activity carried 21% gross profit, and that capacity utilisation was 52%. Management said premium clock launches target tier-2 and tier-3 demand and that OEM manufacturing expands for large Indian brands.

How did SONAM shares react?

By five sessions after the filing, the stock was down 3.5% from the pre-results close. Over the same period, the median move for the other Consumer Electronics stocks was 1.4% lower on the reaction day, 3.9% lower by the next day's close and 0.7% lower after five sessions. SONAM's move was 2.6 percentage points below the sector median on the reaction day, 4.1 percentage points below after one session and 2.7 percentage points below after five sessions. The nearest market index, Nifty Microcap 250, fell 1.0%, 3.3% and 0.5% over the same three closes.