SC Agrotech Q2 FY27 Results (BSE: 526081)
Signal: Steady quarter
The read
The operating inflection is the second consecutive quarter of roughly 34% margin: Q2FY27 operating margin was 33.7%, up 2,803bps YoY and 347bps QoQ, as raw-material cost fell to 66.2% of revenue; however, Q2 revenue declined 16.4% sequentially and H1 operating cash flow was negative 9.05 lakh despite PAT of 1,976.90 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹37.85 Cr | 654.7% | -16.4% |
| Net profit | ₹9.56 Cr | 4,406.6% | |
| EPS | ₹1.26 | 260.0% | |
| EBIT margin | 33.7% |
P&L walk
Standalone Q2FY27 revenue was 3,785.23 lakh, up 654.7% YoY but down 16.4% QoQ; gross margin expanded to 33.8% from 8.2% as raw-material cost fell to 66.2% of revenue from 91.8%, while PAT reached 955.90 lakh after 318.63 lakh of tax.
Key positives
- Revenue was 3,785.23 lakh, up 654.7% YoY, while operating profit before exceptional items was 1,274.53 lakh, up from 28.31 lakh YoY.
- Gross margin expanded to 33.8% from 8.2% YoY as raw-material cost declined to 66.2% of revenue from 91.8%; this is the second consecutive quarter of material margin expansion in the available series.
- PAT reached 955.90 lakh, up 4,406.6% YoY, with no exceptional or extraordinary items reported.
Key concerns
- Revenue declined 16.4% QoQ from 4,525.94 lakh to 3,785.23 lakh, so the margin improvement has not yet been accompanied by sequential top-line momentum.
- Operating cash flow was negative 9.05 lakh for H1FY27 despite PAT of 1,976.90 lakh, with trade receivables at 12,260.44 lakh.
- EPS growth of 260.0% materially lagged PAT growth of 4,406.6%, creating an earnings-quality divergence that requires reconciliation.
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