Innovassynth Technologies Q2 FY27 Results (BSE: 533315)
Signal: Loss reversed
The read
The trajectory remains growth-positive but is losing sequential quality: Q2 revenue was ₹4,754.83 lakh, +175.1% YoY but -15.1% QoQ, while gross margin fell 702bps YoY to 56.9% and PAT dropped 77.8% QoQ to ₹149.52 lakh. Other income of ₹315.03 lakh exceeded the ₹163.91 lakh reported profit before tax, so operating earnings quality needs confirmation in subsequent quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹47.55 Cr | +175.1% | -15.1% |
| Net profit | ₹1.5 Cr | N/M (loss to profit) | |
| EPS | ₹0.16 | N/M (loss to profit) |
P&L walk
Revenue rose to ₹4,754.83 lakh, +175.1% YoY but -15.1% QoQ; gross margin compressed to 56.9% from 63.9% YoY as raw-material cost rose to 47.6% of revenue from 33.2%, while PAT remained positive at ₹149.52 lakh but fell 77.8% QoQ.
Key positives
- Revenue from operations rose to ₹4,754.83 lakh, up 175.1% YoY, and half-year revenue reached ₹10,353.42 lakh versus ₹2,955.30 lakh in the restated prior period.
- Employee expense grew 25.6% YoY and other expenses 17.7%, both materially below revenue growth of 175.1%, indicating cost growth was contained relative to the enlarged revenue base.
- Finance cost fell 35.7% YoY to ₹113.05 lakh as net debt declined to ₹2,864.97 lakh from ₹10,193.99 lakh.
- PAT turned positive at ₹149.52 lakh from a restated year-ago loss of ₹1,428.08 lakh.
Key concerns
- Gross margin compressed 702bps YoY to 56.9% as raw-material cost rose to 47.6% of revenue from 33.2%; the filing does not identify a recovery or pass-through mechanism.
- Sequential momentum weakened: revenue fell 15.1% QoQ and PAT fell 77.8% QoQ from ₹673.54 lakh to ₹149.52 lakh.
- Other income rose to ₹315.03 lakh from ₹29.70 lakh and exceeded reported profit before tax of ₹163.91 lakh, making the quarter's bottom-line quality dependent on non-operating income.
- CWIP increased to ₹938.84 lakh from ₹365.41 lakh while the filing does not provide capacity utilisation or project commissioning detail.
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