Valiant Communications Q2 FY27 results: net profit up 38.9% to ₹7.32 crore, revenue up 19.3%

How did Valiant Communications perform in Q2 FY27?

Consolidated revenue for the July–September 2026 quarter was ₹24.07 crore, up 19.3% from ₹20.17 crore in Q2 FY26 and down 5.3% from ₹25.42 crore in Q1 FY27. Total income was ₹25.25 crore, against ₹21.00 crore a year earlier and ₹25.90 crore in the previous quarter. EBITDA rose 43.9% to ₹9.97 crore from ₹6.93 crore, and the EBITDA margin widened 7.0 percentage points to 41.4% from 34.4%.

Profit before tax was ₹10.28 crore, up 46.6% from ₹7.01 crore a year earlier and down 2.2% from ₹10.51 crore in Q1 FY27. Profit after tax was ₹7.32 crore, an increase of 38.9% year on year and a fall of 6.0% from the previous quarter, with the net margin at 30.4% against 26.1% a year earlier. Basic EPS was ₹6.26, down 9.4% from ₹6.91 a year earlier and 6.8% from ₹6.72 in Q1 FY27.

On a standalone basis, revenue was ₹23.29 crore, up 16.1% from ₹4.99 crore of profit before tax, and profit after tax was ₹7.46 crore. The board approved both standalone and consolidated unaudited results for the quarter ended 30 September 2026, which were subject to limited review by the statutory auditors, on 5 November 2026.

What changed in Valiant Communications' costs and profit?

Total expenses were ₹14.97 crore, up 7.0% from ₹13.99 crore in Q2 FY26 but down 2.7% from ₹15.39 crore in Q1 FY27. Cost of materials was ₹8.17 crore, up 36.9% from ₹5.97 crore, while employee cost rose 25.2% to ₹2.78 crore from ₹2.22 crore. Depreciation rose 15.7% to ₹0.81 crore and finance costs were ₹0.06 crore, up from ₹0.05 crore. Other expenses fell 32.2% to ₹3.01 crore from ₹4.44 crore.

Other income rose 42.2% to ₹1.18 crore from ₹0.83 crore a year earlier and rose from ₹0.48 crore in the previous quarter. There was no exceptional item in the quarter. Tax expense rose 70.1% to ₹2.96 crore from ₹1.74 crore, and was up 8.8% from ₹2.72 crore in Q1 FY27. Against the previous quarter, other income was up ₹0.70 crore, other expenses were up ₹0.18 crore, and tax was up ₹0.24 crore.

In its standalone business update, management said scheduled equipment deliveries against certain orders were deferred during Q2 FY27 because of global supply chain disruptions affecting key electronic components, and that these deliveries are expected to be executed in the coming quarters. Management also said that some quarter-to-quarter variability is normal in the industry and has historically evened out over the financial year.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹49.49 crore, up 28.6% from ₹38.49 crore in H1 FY26, while total income rose 28.1% to ₹51.15 crore from ₹39.94 crore. Profit before tax rose 57.1% to ₹20.79 crore from ₹13.23 crore, and profit after tax rose 51.3% to ₹15.11 crore from ₹9.99 crore. Basic EPS for the half was ₹12.98, down 0.9% from ₹13.10 a year earlier.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets stood at ₹139.73 crore against ₹111.54 crore at 31 March 2026, and total equity was ₹126.13 crore against ₹96.54 crore. Borrowings fell to ₹1.79 crore from ₹2.16 crore, while cash rose to ₹31.22 crore from ₹18.60 crore. Inventories were ₹15.84 crore against ₹12.60 crore, trade receivables fell to ₹15.65 crore from ₹18.91 crore, and trade payables were ₹4.77 crore against ₹5.53 crore.

For the first half of FY27, operating cash flow was ₹14.71 crore against ₹10.58 crore in H1 FY26. Investing cash flow was negative ₹16.02 crore, compared with negative ₹5.72 crore a year earlier, and financing cash flow was positive ₹13.83 crore against negative ₹0.11 crore. Capital expenditure was ₹0.30 crore in H1 FY27, compared with ₹1.97 crore in the year-ago period.

How has Valiant Communications done over the last 8 quarters?

Revenue rose in each of the last seven quarters on a year-on-year basis and profit after tax rose in each of the last three. Over the reported sequence, revenue moved from ₹8.36 crore in Q3 FY25, when the company reported a loss of ₹0.53 crore and an EBITDA margin of 1.4%, to ₹24.07 crore in Q2 FY27. The revenue peak in the series was ₹25.42 crore in Q1 FY27, and profit after tax peaked at ₹8.14 crore in Q4 FY26 before easing to ₹7.32 crore.

The EBITDA margin expanded from 34.4% in Q2 FY26 to a peak of 42.7% in Q1 FY27, then eased to 41.4% in Q2 FY27. Revenue and profit after tax both declined from the previous quarter, while remaining above the year-ago levels, continuing the year-on-year rise recorded over the last three quarters.

Which businesses drove the quarter?

On a consolidated basis, the India segment reported revenue of ₹20.03 crore, up 20.0% from ₹16.70 crore a year earlier, with segment EBIT of ₹13.05 crore against ₹11.09 crore and an EBIT margin of 65.2%. Europe recorded revenue of ₹2.39 crore, up 145.6% from ₹0.97 crore, with EBIT of ₹1.55 crore against ₹0.66 crore and a margin of 64.9%.

The USA segment posted revenue of ₹1.06 crore, down 1.9% from ₹1.08 crore, with EBIT of ₹0.68 crore against ₹0.72 crore and an EBIT margin of 64.2%. Rest of the World reported revenue of ₹0.71 crore, down 58.0% from ₹1.69 crore, with EBIT of ₹0.47 crore against ₹1.12 crore and a margin of 66.2%.

What else did the company announce?

The company filed a business update on 5 November 2026 reporting a confirmed gross order book of ₹12,388 lakh, alongside L1 status opportunities of ₹350+ lakh, advanced opportunities of ₹3,300+ lakh and estimated forthcoming business opportunities of ₹19,000+ lakh. The company noted that all figures are in INR lacs and that, apart from the confirmed gross order book, the other figures may change on account of tender outcomes, bidding results, scope revisions, cancellation or retendering and other business developments.

The same-day filing noted that 2,50,000 equity shares of ₹10 each were allotted during the quarter ended 30 June 2026 on conversion of 2,50,000 warrants issued to the non-promoter category at ₹768 per warrant, and that 3,50,000 warrants remained outstanding for conversion as at 30 September 2026. The board meeting for the results was held on 5 November 2026, and the trading window for designated persons was to remain closed until 48 hours after the announcement.

How did Valiant Communications shares react?

The stock moved sharply lower shortly after the filing, falling 7.2% within five minutes and 7.4% within 15 minutes, before the decline stood at 0.8% after 30 minutes. From the previous close of ₹1,570.00, the reaction-day close was 3.1% lower, with the base price at the time of the filing ₹1,583.50.

The Telecommunication sector's other stocks recorded a median move of 0.5% on the reaction day, so Valiant Communications' move was 3.6 percentage points below the sector median. Earlier results-day moves were positive: 6.1% on 12 August 2026, 3.3% on 30 May 2026, 5.0% on 3 February 2026 and 2.0% on 30 October 2025.