USG Tech Solutions Q2 FY27 results: net loss narrows to ₹0.07 crore

How did USG Tech Solutions perform in Q2 FY27?

USG Tech Solutions reported consolidated revenue of ₹0 crore in Q2 FY27, unchanged from Q2 FY26 and Q1 FY27. The company reported a net loss of ₹0.07 crore, compared with a net loss of ₹0.08 crore in Q2 FY26 and a net loss of ₹0.12 crore in Q1 FY27. Profit attributable to owners was ₹0 crore, and basic EPS was ₹0.02.

EBITDA was negative ₹0.02 crore in Q2 FY27, compared with negative ₹0.03 crore in Q2 FY26 and negative ₹0.08 crore in Q1 FY27. Profit before tax was negative ₹0.07 crore in Q2 FY27, against negative ₹0.08 crore a year earlier and negative ₹0.12 crore in the previous quarter. On the standalone basis, the reported revenue was ₹0 crore and profit attributable to owners was a loss of ₹0.02 crore.

The company reported total expenses of ₹0.07 crore in Q2 FY27, down from ₹0.08 crore in Q2 FY26 and ₹0.12 crore in Q1 FY27. Other income was ₹0 crore, and there was no exceptional item in either comparison period.

What changed in USG Tech Solutions' costs and profit?

Against Q2 FY26, employee benefit expense fell by ₹0.02 crore, while finance costs rose by ₹0.01 crore and other expenses rose by ₹0.01 crore. Total expenses fell by ₹0.01 crore, or 12.5%. Cost of materials, depreciation and amortisation, other income and tax were unchanged at ₹0 crore. There was no exceptional item in the quarter.

Against Q1 FY27, employee benefit expense fell by ₹0.01 crore and other expenses fell by ₹0.05 crore, or 71.4%. Finance costs rose by ₹0.01 crore, or 25.0%, while total expenses fell by ₹0.05 crore, or 41.7%. Tax and other income were unchanged, and no exceptional item was reported.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹0 crore and total income was ₹0 crore. Profit before tax was a loss of ₹0.19 crore, compared with a loss of ₹0.22 crore in H1 FY26, while the net result improved to a loss of ₹0.19 crore from a loss of ₹0.22 crore. Basic EPS was not reported for the half-year.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹55.23 crore, compared with ₹42.08 crore as of 31 March 2026. Total equity was ₹37.20 crore, against ₹36.23 crore, and borrowings were ₹17.73 crore, against ₹5.73 crore. Cash and cash equivalents were ₹0.05 crore, compared with ₹0.07 crore, while trade receivables were ₹6.86 crore, against ₹6.78 crore.

For H1 FY27, operating cash flow was negative ₹0.17 crore, compared with negative ₹0.14 crore in H1 FY26. Financing cash flow was ₹0.16 crore, against ₹0.13 crore, while investing cash flow was ₹0 crore in both periods. Capital expenditure was ₹0 crore in each period.

How has USG Tech Solutions done over the last 8 quarters?

Profit remained negative through the reported quarters, with the lowest loss in Q3 FY25 at ₹0.28 crore and the highest reported loss at ₹0.07 crore in Q4 FY25. The net loss widened to ₹0.14 crore in Q1 FY26, improved to ₹0.08 crore in Q2 FY26, and then moved to ₹0.07 crore in Q3 FY26. It was ₹0.08 crore in Q4 FY26 and ₹0.12 crore in Q1 FY27 before narrowing to ₹0.07 crore in Q2 FY27.

Revenue was ₹0 crore in each of the eight reported quarters from Q3 FY25 through Q2 FY27. EBITDA margin was not reported for those quarters. The latest direction was toward a smaller net loss in Q2 FY27 than in Q1 FY27, while revenue remained unchanged.

What else did the company announce?

In its filing dated 15 October 2026, the company said the Board had approved the unaudited standalone and consolidated financial results for the quarter ended 30 September 2026, along with the limited review report. The results had been reviewed by the Audit Committee. The company also filed a certificate of non-applicability of Regulation 32 and a declaration under Regulation 33(3)(d). The filing also stated that management had exercised due diligence over the financial results.

How did USG Tech Solutions shares react?

The filing appeared after market hours. From the price when the filing appeared, the stock was up 6.2% after 5 minutes, 5.2% after 15 minutes and 5.2% after 30 minutes. On the reaction day, it closed 5.3% above the previous close of ₹7.40; by the next day's close, the stock was down 0.7% from that pre-results close, and by the fifth session it was unchanged.

The IT Enabled Services industry median was up 1.0% on the reaction day, down 0.9% by the next day's close and down 6.6% by the fifth session. USG Tech Solutions outperformed the industry median by 4.3 percentage points on the reaction day and by 6.6 percentage points by the fifth session. Earlier reaction-day moves were negative 2.0% on 13 August 2026, positive 1.4% on 29 May 2026 and positive 6.5% on 13 February 2026.

How did other IT Enabled Services companies do?

Among 29 other IT Enabled Services companies that filed this quarter, the median revenue growth was 22.5%. Of the 25 peers for which profit was compared, 19 reported higher profit. The number of peers that grew faster than USG Tech Solutions and the number that grew slower were not reported in the supplied data.