Transchem Q2 FY27 Results (BSE: 500422)
Signal: Steady quarter
The read
The trajectory is not an operating turnaround: consolidated Q2FY27 PAT was ₹205.13 lakh and H1 PAT ₹547.24 lakh, but ₹414.26 lakh of quarterly other income and negative H1 operating cash flow of ₹130.16 lakh show that earnings still depend on investment income and capital deployment; the new subsidiary adds revenue but only ₹2.48 lakh of profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.93 Cr | N/A | N/A |
| Net profit | ₹2.05 Cr | N/A | |
| EPS | ₹1.68 | N/A | |
| EBIT margin | N/A |
P&L walk
Consolidated Q2FY27 added ₹92.63 lakh of subsidiary revenue and ₹414.26 lakh of other income, producing ₹205.13 lakh PAT; the first consolidated comparatives are explicitly not comparable because prior columns represent standalone Transchem.
Segments
There are no reportable segments; the consolidated result includes Greshma Shares & Stocks Limited, which contributed ₹92.63 lakh of revenue and ₹2.48 lakh of PAT, so nearly all group profit remains at the parent investment-holding level.
Key positives
- Consolidated Q2FY27 PAT was ₹205.13 lakh and H1FY27 PAT was ₹547.24 lakh, compared with standalone Q2FY26 PAT of ₹67.92 lakh and H1FY26 PAT of ₹167.25 lakh, although the filing says the first consolidated comparatives are not comparable.
- Cash and cash equivalents increased to ₹7,505.25 lakh at 30 September 2026 from ₹4,242.91 lakh at 31 March 2026, supported by ₹11,531.25 lakh of warrant proceeds.
- Greshma Shares & Stocks Limited added ₹92.63 lakh of revenue and ₹2.48 lakh of PAT in its first period of consolidation.
Key concerns
- Standalone Q2FY27 had no operating revenue while other income was ₹511.36 lakh, making the ₹202.65 lakh PAT investment-income dependent.
- Consolidated operating cash flow was negative ₹130.16 lakh in H1FY27 despite ₹547.24 lakh of PAT, indicating weak conversion of reported earnings into operating cash.
- Basic EPS of ₹1.68 versus diluted EPS of ₹0.32 signals substantial dilution risk following the allotment of 6,15,00,000 warrants.
- Other expenses rose to ₹138.61 lakh in consolidated Q2FY27 from ₹43.25 lakh sequentially, adding volatility to a business without operating revenue.
Research and educational content only. Not investment advice.