Forbes & Co Q2 FY27 Results (BSE: 502865)
Signal: Revenue declined
The read
The operating mix is improving toward Coding and Industrial Automation, which grew revenue 20.7% YoY and returned to a ₹47 lakh segment profit, but consolidated momentum remains weak because Real Estate revenue fell 23.0% and standalone PAT dropped 50.7% to ₹298 lakh; the approved ₹35 crore IT Park and ₹15 crore factory capex now make execution the key inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17.66 Cr | -2.6% | +38.4% |
| Net profit | ₹2.98 Cr | -50.7% | |
| EPS | ₹2.31 | -50.6% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue was ₹1,766 lakh, -2.6% YoY but +38.4% QoQ; PAT fell to ₹298 lakh, -50.7% YoY, as total expenses of ₹1,531 lakh were broadly stable YoY and the prior-year base included ₹605 lakh PAT.
Segments
Coding and Industrial Automation was the momentum unit, with revenue up 20.7% YoY to ₹1,021 lakh and segment result up to ₹47 lakh from ₹38 lakh; Real Estate dragged growth, with revenue down 23.0% to ₹745 lakh and result down 36.6% to ₹470 lakh.
Key positives
- Coding and Industrial Automation revenue increased 20.7% YoY to ₹1,021 lakh, while its segment result rose to ₹47 lakh from ₹38 lakh.
- Coding and Industrial Automation sequentially improved from a ₹69 lakh segment loss in Q1FY27 to a ₹47 lakh profit in Q2FY27.
- The company approved ₹35 crore for the initial phase of its Wagale Thane MIDC IT Park and approximately ₹15 crore plus GST for a Chikalthana factory building/shed.
Key concerns
- Standalone PAT declined 50.7% YoY to ₹298 lakh despite revenue declining only 2.6% to ₹1,766 lakh, indicating a sharp deterioration from the ₹605 lakh prior-year profit base.
- Real Estate revenue fell 23.0% YoY to ₹745 lakh and segment result fell 36.6% to ₹470 lakh; disclosed real-estate project revenue recognized in the quarter was only ₹176 lakh.
- H1 operating cash flow fell to ₹414 lakh from ₹695 lakh YoY while the company committed to ₹50 crore of new project and factory expenditure.
- H1 revenue declined 24.3% YoY to ₹3,042 lakh and H1 PAT declined 40.1% to ₹605 lakh.
Research and educational content only. Not investment advice.