Shriram AMC Q2 FY27 Results (BSE: 531359)
Signal: Loss widened
The read
The key inflection remains negative: asset management services revenue improved 49.0% YoY to ₹101.64 lakh, but total expenses rose 67.8% to ₹1,237.98 lakh and drove the operating margin down to -317.0% from -148.1% a year earlier; the business has not yet demonstrated operating scale or cost absorption.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2.97 Cr | -0.1% | -26.6% |
| EBIT | ₹-9.41 Cr | -113.7% | |
| Net profit | ₹-9.42 Cr | -113.9% | |
| EPS | ₹-5.53 | -63.6% | |
| EBIT margin | -317.0% |
P&L walk
Total income was ₹296.86 lakh, broadly flat YoY but down 26.6% QoQ, while total expenses rose 67.8% YoY to ₹1,237.98 lakh; the resulting operating loss widened to ₹941.12 lakh and PAT loss to ₹941.69 lakh.
Key positives
- Asset management services revenue increased 49.0% YoY to ₹101.64 lakh and 17.1% QoQ, indicating growth in the core fee-generating business.
- The asset base expanded, with property, plant and equipment rising to ₹221.39 lakh from ₹53.85 lakh at March 31, 2026, while depreciation increased 221.3% YoY to ₹18.44 lakh, a clean depreciation-to-capex signal.
- Interest income remained stable at ₹51.81 lakh YoY and QoQ, providing a recurring contribution alongside the fee business.
Key concerns
- Total expenses of ₹1,237.98 lakh were 4.2 times total income of ₹296.86 lakh, leaving the operating margin at -317.0% versus -148.1% YoY.
- Employee benefits expense rose 53.2% YoY to ₹743.20 lakh and other expenses rose 91.9% to ₹472.56 lakh, both materially outpacing the 0.1% decline in total income.
- Operating cash flow was negative ₹2,121.79 lakh in H1FY27 versus negative ₹658.83 lakh in H1FY26, despite investments of ₹13,086.92 lakh remaining on the balance sheet.
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