Jattashankar Ind Q2 FY27 Results (BSE: 514318)
Signal: Margin pressure
The read
The headline rebound is not yet a durable trajectory: Q2 revenue of ₹994.58 lakh was 72.20% below Q1FY27 despite being 12,332.25% above the ₹8.00 lakh base, while H1 revenue reached ₹4572.88 lakh and H1 PAT ₹118.14 lakh. The more material issue is cash conversion, with H1 operating cash flow negative ₹2308.92 lakh against ₹118.14 lakh PAT as inventory reached ₹2080.69 lakh and receivables ₹1593.26 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9.95 Cr | 12332.25% | -72.20% |
| EBIT | ₹0.36 Cr | 166.94% | |
| Net profit | ₹0.26 Cr | 676.55% | |
| EPS | ₹0.6 | 650.00% | |
| EBIT margin | 3.58% |
P&L walk
Standalone Q2 revenue was ₹994.58 lakh, up 12,332.25% YoY but down 72.20% QoQ; gross margin was 4.47% versus 100.00% a year earlier as traded-goods purchases and inventory movements absorbed most sales, while EBIT rose 166.94% YoY to ₹35.61 lakh but fell 71.36% QoQ.
Key positives
- Q2 operating profit was ₹35.61 lakh, up 166.94% YoY, and PAT was ₹26.31 lakh, up 676.55% YoY from a ₹3.39 lakh base.
- H1FY27 revenue reached ₹4572.88 lakh and H1 PAT ₹118.14 lakh versus ₹8.00 lakh and ₹14.24 lakh respectively in H1FY26.
- The company received ₹2314.42 lakh from the preferential warrant issue, strengthening reported equity funding; the filing states no deviation in use of proceeds.
Key concerns
- Q2 revenue of ₹994.58 lakh declined 72.20% sequentially from ₹3578.30 lakh, showing extreme quarter-to-quarter volatility.
- Gross margin was only 4.47%, versus 100.00% a year earlier, with traded-goods purchases of ₹1967.92 lakh and inventory change of negative ₹1017.76 lakh; the filing does not explain the economics of the sharp margin change.
- H1 operating cash flow was negative ₹2308.92 lakh despite H1 PAT of ₹118.14 lakh, driven by inventory, receivables and other current assets increasing by ₹1967.02 lakh, ₹455.20 lakh and ₹717.92 lakh respectively in the cash-flow bridge.
- All 8,088,695 convertible warrants remained outstanding and may increase the future share count if converted within 18 months.
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