Pervasive Comm. Q2 FY27 Results (BSE: 517172)
Signal: Steady quarter
The read
The quarter shows a sharp revenue recovery to ₹163.65 lakh, up 232.0% QoQ after ₹49.30 lakh in Q1FY27, but the trajectory is not yet earnings-led: gross margin fell to 4.9% from 31.0% sequentially and PAT was only ₹1.90 lakh. The balance sheet remains dominated by ₹4,289.96 lakh of inventory, including gold bars for which the filing notes no sales during the period.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1.64 Cr | +309.0% | +232.0% |
| EBIT | ₹0.03 Cr | N/A | |
| Net profit | ₹0.02 Cr | N/A | |
| EPS | ₹0 | N/A | |
| EBIT margin | 1.6% |
P&L walk
Standalone revenue rose to ₹163.65 lakh from ₹49.30 lakh sequentially and ₹40.01 lakh a year earlier, but purchases of stock-in-trade absorbed ₹155.61 lakh and gross margin fell to 4.9% from 31.0% in Q1FY27; PAT was only ₹1.90 lakh despite the revenue rebound.
Key positives
- Revenue from operations recovered to ₹163.65 lakh, up 232.0% QoQ and 309.0% YoY, after the ₹49.30 lakh Q1FY27 trough.
- PAT improved to ₹1.90 lakh from ₹1.10 lakh in Q1FY27 and a ₹1,565.16 lakh loss a year ago.
- Operating cash flow was positive at ₹315.93 lakh in H1FY27, supported by working-capital movements.
Key concerns
- Gross margin fell to 4.9% from 31.0% in Q1FY27 as stock-in-trade purchases reached ₹155.61 lakh against ₹163.65 lakh of operating revenue.
- The revenue rebound did not translate into meaningful profitability: ₹1.90 lakh PAT represented only about 1.2% of revenue from operations.
- Inventory remained ₹4,289.96 lakh, while the filing states that gold bars were held in closing inventory with no sales during the period.
- Trade receivables were ₹2,329.71 lakh and the auditor noted that external balance confirmations and supporting reconciliations were not received for loans and advances aggregating ₹1,967.42 lakh.
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