India Homes Q2 FY27 Results (BSE: 513361)
Signal: Loss reversed
The read
The apparent PAT recovery to ₹426.66 lakh is not operational: revenue stayed at ₹0 lakh, the company recorded a ₹271.35 lakh pre-exceptional loss, and the entire profit depended on a ₹704.01 lakh exceptional settlement gain; with operations yet to commence, debt, inventory recoverability and going-concern status remain the trajectory-defining issues.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | 0 lakh | -100% | 0% |
| Net profit | ₹4.27 Cr | +235.5% | |
| EPS | ₹0.11 | +237.5% |
P&L walk
Standalone revenue was ₹0 lakh, while total income of ₹233.30 lakh was entirely non-operating; finance cost of ₹193.30 lakh and other expenses of ₹70.44 lakh produced a ₹271.35 lakh pre-exceptional loss, converted into ₹426.66 lakh PAT only by a ₹704.01 lakh exceptional gain.
Key positives
- Exceptional items of ₹704.01 lakh converted a ₹271.35 lakh pre-exceptional loss into ₹426.66 lakh PAT, improving the reported balance-sheet position in the quarter.
- Operating cash flow was positive at ₹2,029.48 lakh in H1FY27, compared with H1 PAT of ₹770.82 lakh.
Key concerns
- Revenue remained ₹0 lakh for the quarter and the filing states that project operations have yet to commence, leaving no operating earnings base.
- Finance cost was ₹193.30 lakh against ₹0 lakh operating revenue, while borrowings were ₹7,168.3 lakh and cash was only ₹43.69 lakh.
- The ₹426.66 lakh PAT was entirely dependent on the ₹704.01 lakh exceptional gain; the auditor stated that ₹730.05 lakh of lender-settlement gain may have been recognised prematurely.
- Inventory of ₹13,689.68 lakh includes work-in-progress and raw materials that the auditor indicated may be realisable primarily at scrap values, creating material impairment risk.
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