AUDROC Q2 FY27 Results (BSE: 530889)
Signal: Loss reversed
The read
The business has re-entered revenue generation at ₹328.15 lakh in Q2FY27 from nil a year ago, and PAT turned positive at ₹10.42 lakh from a ₹11.23 lakh loss; however, gross margin compressed to 8.87% from 33.82% sequentially, H1 operating cash flow was negative ₹6,807.96 lakh and the reviewer issued a qualified report, making cash conversion and accounting quality the key trajectory tests.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3.28 Cr | N/A | +232.8% |
| EBIT | ₹0.1 Cr | N/A | |
| Net profit | ₹0.1 Cr | N/A | |
| EPS | ₹0.16 | N/A | |
| EBIT margin | 3.18% |
P&L walk
Standalone revenue was ₹328.15 lakh in Q2FY27 versus nil a year ago and ₹98.60 lakh in Q1FY27; gross margin fell to 8.87% from 33.82% sequentially as materials remained ₹299.06 lakh, while PAT turned positive at ₹10.42 lakh from a ₹11.23 lakh loss a year ago and ₹4.34 lakh in Q1FY27.
Key positives
- Revenue from operations reached ₹328.15 lakh in Q2FY27 versus nil in Q2FY26 and ₹98.60 lakh in Q1FY27.
- PAT turned positive at ₹10.42 lakh versus a ₹11.23 lakh loss a year ago and ₹4.34 lakh in Q1FY27, with no tax expense or exceptional item.
- Employee benefits plus other expenses fell 35.5% sequentially to ₹18.67 lakh, cushioning the gross-profit decline.
Key concerns
- Gross margin fell 24.95 percentage points sequentially to 8.87%, while raw materials consumed ₹299.06 lakh, or 91.13% of Q2FY27 revenue; the filing does not disclose the driver.
- H1FY27 operating cash flow was negative ₹6,807.96 lakh despite H1 PAT of ₹14.76 lakh, driven by ₹943.01 lakh of inventory, ₹746.69 lakh of trade receivables and ₹5,657.25 lakh of loans and advances.
- Basic EPS of ₹0.16 does not yet reflect the potential dilution from 20 crore warrants convertible into equity shares allotted during the quarter.
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