Vellora Impact Q2 FY27 results: net profit up 1.7% to ₹6.71 crore, revenue ₹148.64 crore vs ₹2.17 crore

How did Vellora Impact perform in Q2 FY27?

Vellora Impact reported standalone revenue of ₹148.64 crore for Q2 FY27, compared with ₹2.17 crore in Q2 FY26 and ₹141.92 crore in Q1 FY27. EBITDA was ₹8.92 crore, with a 6.0% margin, against a loss of ₹0.73 crore and a -33.9% margin in Q2 FY26; against Q1 FY27, EBITDA rose ₹0.94 crore and the margin improved by 0.4 percentage points.

Profit before tax was ₹8.87 crore in Q2 FY27, up ₹2.35 crore from ₹6.52 crore in Q2 FY26 and up ₹0.97 crore from ₹7.90 crore in Q1 FY27. Net profit was ₹6.71 crore, up ₹0.11 crore year on year but down ₹1.19 crore from the previous quarter, while basic EPS was 12.05 against 11.84 and 14.19, respectively. The results are standalone; the filing also shows H1 FY27 figures on a continuing-operations basis.

What changed in Vellora Impact's costs and profit?

Other income was ₹0.01 crore in Q2 FY27, unchanged from Q2 FY26, and there was no exceptional item. Tax was ₹2.15 crore in Q2 FY27 against a tax credit of ₹0.08 crore in Q2 FY26; the filing reports current tax of ₹2.23 crore, deferred tax of ₹0.25 crore and tax of earlier years of ₹7.71 lakh. The auditor stated that the company discontinued manufacturing operations in the quarter and half year ended 30 September 2026 and changed its business objective from 1 January 2026 to IT and ITES and trading of agriculture produces.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹290.56 crore and total income was ₹290.57 crore, compared with ₹3.33 crore and ₹3.35 crore in H1 FY26. Revenue increased by ₹287.23 crore, or 8625.5%, while total income increased by ₹287.22 crore, or 8573.7%.

H1 FY27 profit before tax was ₹16.77 crore, up ₹12.36 crore from ₹4.41 crore in H1 FY26, and profit after tax was ₹12.63 crore, up ₹8.14 crore from ₹4.49 crore. Basic EPS was 22.67, compared with 8.05 in H1 FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹109.24 crore against ₹1.83 crore at 31 March 2026, while total equity was ₹13.59 crore against ₹0.71 crore. Borrowings were ₹0.07 crore compared with ₹0.04 crore, and cash was ₹1.38 crore compared with ₹0.49 crore; inventories were ₹3.02 crore, trade receivables ₹103.32 crore and trade payables ₹91.06 crore.

For H1 FY27, operating cash flow was ₹0.78 crore, compared with an outflow of ₹2.44 crore in H1 FY26. Investing cash flow was ₹0.08 crore against ₹6.16 crore, financing cash flow was ₹0.03 crore against an outflow of ₹3.66 crore, and capital expenditure was ₹0.05 crore against ₹0.00 crore.

How has Vellora Impact done over the last 8 quarters?

Revenue reached ₹148.64 crore in Q2 FY27, the highest level in the reported quarterly series, compared with a low of ₹0.16 crore in Q3 FY26. Revenue has risen year on year in each of the last three quarters, with Q1 FY27 revenue at ₹141.92 crore.

Q2 FY27 profit was ₹6.71 crore, below the ₹7.90 crore reported in Q1 FY27 but above the ₹6.60 crore in Q2 FY26. The EBITDA margin was 6.0%, up from 5.6% in Q1 FY27; the lowest margin in the series was -964.8% in Q4 FY25, while the highest was 74.2% in Q3 FY26.

Which businesses drove the quarter?

Segment A - IT Enabled Services reported revenue of ₹4.3 crore and EBIT of ₹2.24 crore, with an EBIT margin of 52.2%. The filing does not provide comparable year-ago revenue or EBIT for this segment.

Segment B - Agriculture Produces reported revenue of ₹144.34 crore and EBIT of ₹7.37 crore, with an EBIT margin of 5.1%. Comparable year-ago revenue and EBIT figures were not provided for this segment.

What did the auditors point out?

The limited review report stated that the review was performed under Standard on Review Engagement (SRE) 2410 and obtained moderate assurance. It said the review was limited primarily to inquiries of company personnel and analytical procedures, provided less assurance than an audit, and that the auditors had not performed an audit and therefore did not express an audit opinion.

The auditors set out a qualified-opinion basis: the company was accounting for gratuity and leave encashment on a cash basis, which was not in accordance with Ind AS 1 on Presentation of Financial Statement and Ind AS 19 on Employee Benefits, and was contrary to Section 133 of the Companies Act, 2013. They said the extent of non-compliance in terms of value was not ascertainable. Apart from these observations, they said nothing had come to their attention to cause them to believe that the accompanying unaudited results failed to disclose the required information or contained a material misstatement.

The auditors also stated that the company discontinued manufacturing operations during the quarter and half year ended 30 September 2026, and that from 1 January 2026 it changed its business objective to Information Technology and Information Technology Enabled Services and trading of agriculture produces. They qualified their opinion in respect of this matter and said they had not reviewed the results and other financial information for the quarter ended 30 September 2026, which had been presented solely on information compiled by management and approved by the board.

How did other Specialty Chemicals companies do?

The peer set comprised 57 other Specialty Chemicals companies that had filed results for this quarter as of 5 November 2026. Their median revenue growth was 28.1%, compared with Vellora Impact’s revenue growth of 6749.8%; 57 companies grew more slowly and none grew faster than Vellora Impact.

Among 53 peers for which profit was compared, 46 reported higher profit. Vellora Impact’s net profit was ₹6.71 crore in Q2 FY27, compared with ₹6.60 crore in Q2 FY26, an increase of 1.7%.