Starsource Multitrade Q2 FY27 results: net loss of ₹0.06 crore vs ₹0.10 crore profit

How did Starsource Multitrade perform in Q2 FY27?

Starsource Multitrade reported standalone revenue of ₹0 crore for Q2 FY27, the July–September 2026 quarter, against ₹0.53 crore in Q2 FY26, a difference of ₹0.53 crore. Against the previous quarter, revenue was lower by ₹0.07 crore from ₹0.07 crore in Q1 FY27. Total income was also ₹0 crore.

The company reported an EBITDA loss of ₹0.06 crore in Q2 FY27, against EBITDA of ₹0.10 crore in Q2 FY26 and ₹0.02 crore in Q1 FY27, a difference of ₹0.16 crore and ₹0.08 crore respectively. No EBITDA margin was reported for the quarter, compared with 18.7% in Q2 FY26 and 28.3% in Q1 FY27.

Profit before tax was a loss of ₹0.06 crore, down ₹0.16 crore from ₹0.10 crore a year earlier and ₹0.08 crore from ₹0.02 crore in the previous quarter. With no tax charge, the net loss was ₹0.06 crore. Basic EPS was -₹0.41, against ₹0.65 in Q2 FY26 and ₹0.14 in Q1 FY27. The figures are on a standalone basis; the board approved the unaudited standalone results on 5 November 2026.

What changed in Starsource Multitrade's costs and profit?

Total expenses fell ₹0.37 crore to ₹0.06 crore from ₹0.43 crore in Q2 FY26, an 86.0% reduction. The fall in expenses did not offset the ₹0.53 crore drop in revenue, and the result moved to a loss. No cost or income explanation for the revenue decline was stated in the filing.

Employee benefit expense was unchanged at ₹0.02 crore, finance costs were unchanged at ₹0 crore, and cost of materials consumed was unchanged at ₹0 crore. Other expenses rose ₹0.01 crore to ₹0.04 crore from ₹0.03 crore, an increase of 33.3%. Depreciation and amortisation was ₹0 crore against ₹0 crore a year earlier.

Other income was unchanged at ₹0 crore, and tax expense was unchanged at ₹0 crore. There was no exceptional item in the quarter. Against the previous quarter, total expenses rose ₹0.01 crore to ₹0.06 crore from ₹0.05 crore, an increase of 20.0%, with employee cost down ₹0.01 crore to ₹0.02 crore and other expenses up ₹0.02 crore to ₹0.04 crore.

How did the first half of FY27 go?

For the first half of FY27, revenue was ₹0.07 crore, against ₹0.53 crore in H1 FY26, a decline of ₹0.46 crore or 86.8%. Total income was ₹0.07 crore, down ₹0.48 crore or 87.3% from ₹0.55 crore.

Profit before tax and net loss both stood at ₹0.04 crore for H1 FY27, compared with a net loss of ₹11.71 crore in H1 FY26, an improvement of ₹11.67 crore. EPS for the first half was -₹0.27 against -₹78.05 a year earlier.

What do the balance sheet and cash flow show?

Total assets stood at ₹1.83 crore as on 30 September 2026, against ₹1.81 crore as on 31 March 2026. Total equity was ₹1.25 crore, lower from ₹1.29 crore at the previous balance sheet date. Trade receivables were unchanged at ₹0.49 crore, while trade payables fell to ₹0.45 crore from ₹0.48 crore.

There were no borrowings, and cash was ₹0.01 crore, the same as at 31 March 2026. For H1 FY27, operating cash flow was -₹0.01 crore, against -₹11.77 crore in H1 FY26. Investing cash flow was ₹0 crore against ₹0.03 crore, and financing cash flow was -₹0.0 crore against ₹1.13 crore.

How has Starsource Multitrade done over the last 8 quarters?

Revenue was at its highest in the reported series in Q2 FY26 at ₹0.53 crore, and the same quarter carried an EBITDA margin of 18.7%. Profit after tax that quarter was ₹0.1 crore, the only positive net result in the series apart from Q1 FY27.

The weakest profit reading came in Q1 FY26, with a net loss of ₹11.81 crore, while Q3 FY25 and Q4 FY25 posted losses of ₹0.17 crore and ₹0.34 crore. In Q1 FY27 revenue was ₹0.07 crore with a net profit of ₹0.02 crore and an EBITDA margin of 28.3%, the highest margin shown.

The current quarter reversed that improvement: revenue was ₹0 crore and the net loss was ₹0.06 crore. No EBITDA margin was reported for Q2 FY27, and no quarter-by-quarter streak was given.

What did the auditors point out?

S S R V & Associates, the independent auditor, issued a qualified conclusion on the unaudited standalone results for the quarter ended 30 September 2026. The auditor stated that a review is substantially less in scope than an audit and consequently does not enable assurance that all significant matters would be identified, and that no audit opinion is expressed for the quarter.

Under the basis for qualified conclusion, the auditor said that information available from the GST Portal showed the assessee, engaged in wholesale and distribution as a general trader, was inactive with effect from 29 May 2026, and the company was accordingly not in compliance with filing proper returns. Management represented that the company was not registered under the Goods and Services Tax laws and did not provide GST registration details or other GST records for the period under review.

Apart from the possible effects of the matter described in the basis for qualified conclusion, the auditor said nothing had come to its attention that caused it to believe the statement had not disclosed the required information or contained any material misstatement. The filing also noted that the results were prepared under Ind AS 34 read with the Companies (Indian Accounting Standards) Rules, taking into account the going concern assumption.

How did Starsource Multitrade shares react?

How did other Pharmaceuticals companies do?

A total of 78 Pharmaceuticals companies were compared for the quarter, with a median revenue growth of 18.9%. Among the peers compared, 73 had profit figures and 50 of them reported higher profit.

Of the peers compared, 78 companies grew revenue at a slower pace than Starsource Multitrade, whose revenue fell from ₹0.53 crore to ₹0 crore year on year, while 0 grew faster.