Veritas (India) Q2 FY27 Results (BSE: 512229)
Signal: Slipped to loss
The read
The quarter shows a gross-margin inflection but not an earnings recovery: gross margin expanded 180bps YoY to 4.74%, yet EBITDA margin contracted 57bps to 0.95% as other expenses rose 165.5% YoY, and the group swung to a ₹548.10 lakh loss. The recent margin contraction remains unresolved after the prior series showed contracting OPM in Q1FY26, Q2FY26, Q3FY26, Q4FY26 and Q1FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹712.35 Cr | -29.2% | -20.6% |
| EBIT | ₹-4.47 Cr | -189.6% | |
| Net profit | ₹-5.48 Cr | -1017.7% | |
| EPS | ₹-2.04 | -1027.3% | |
| EBIT margin | 0.95% |
P&L walk
Consolidated revenue declined to ₹71,235.47 lakh, -29.2% YoY and -20.6% QoQ; gross margin expanded 180bps YoY to 4.74%, but EBITDA fell 55.7% YoY to ₹678.19 lakh as other expenses rose 165.5% YoY, driving a ₹548.10 lakh PAT loss.
Segments
Warehousing is the main drag: revenue rose 219.4% YoY to ₹2,927.61 lakh but the segment loss widened to ₹834.36 lakh from ₹822.76 lakh, while Distribution & Development remained profitable at ₹387.26 lakh despite revenue falling 31.5% YoY.
Key positives
- Gross margin expanded 180bps YoY to 4.74%, with purchase of stock-in-trade declining to 95.26% of revenue from 97.06%; the filing does not identify the cause.
- Finance costs fell 78.2% YoY to ₹95.57 lakh from ₹438.94 lakh, reducing the below-operating-line burden.
- Consolidated CFO was positive at ₹11,388.59 lakh, supported by a ₹79,675.16 lakh reduction in trade and other receivables.
Key concerns
- Revenue declined 29.2% YoY to ₹71,235.47 lakh, with the core Distribution & Development segment down 31.5% YoY to ₹68,307.86 lakh.
- Other expenses rose 165.5% YoY to ₹2,276.24 lakh, causing EBITDA to fall 55.7% YoY to ₹678.19 lakh despite the gross-margin expansion.
- Warehousing revenue grew 219.4% YoY but remained loss-making at ₹834.36 lakh, making the segment a material drag on group earnings.
- Consolidated PAT swung from ₹59.73 lakh profit to a ₹548.10 lakh loss and EPS fell from ₹0.22 to ₹(2.04).
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