Starlineps Enter Q2 FY27 Results (BSE: 540492)
Signal: Revenue declined
The read
The Q2FY27 inflection is negative: revenue fell 46.6% YoY, gross margin compressed 777bps to -0.7% and EBIT swung to a 107.83 lakh loss after margin had recovered to 5.71% in Q4FY26; PAT remained positive only because other income of 317.50 lakh exceeded the operating loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹19.68 Cr | -46.6% | -2.4% |
| EBIT | ₹-1.08 Cr | -149.5% | |
| Net profit | ₹1.25 Cr | -20.2% | |
| EPS | ₹0.03 | -62.5% | |
| EBIT margin | -5.5% |
P&L walk
Revenue declined 46.6% YoY to 1,968.42 lakh and gross margin compressed 777bps to -0.7%, producing a 107.83 lakh EBIT loss; PAT of 125.30 lakh was supported by 317.50 lakh of other income despite a 12.03 lakh associate loss.
Segments
There is no reportable segment split; the consolidated result is dragged below standalone PAT by Celloraa Energy's 12.03 lakh share of loss, with consolidated PAT of 125.30 lakh versus standalone PAT of 140.99 lakh.
Key positives
- Operating cash flow was 1,239.93 lakh in H1FY27 versus cash used of 918.58 lakh in H1FY26, although this was alongside working-capital movements and investment activity.
- PPE increased to 112.88 lakh from 57.49 lakh while depreciation rose to 2.12 lakh from 1.09 lakh, a clean depreciation-to-capex signal.
- The company completed the 20% Celloraa Energy acquisition for 40 crore, creating an associate exposure to solar-cell manufacturing.
Key concerns
- Revenue fell 46.6% YoY to 1,968.42 lakh and 2.4% QoQ, reversing the 60.5% YoY growth reported in Q1FY27.
- Gross margin compressed 777bps YoY to -0.7%, with purchase, direct and inventory costs at 100.7% of revenue versus 92.9% a year earlier; driver not disclosed.
- EBIT swung from approximately 217.64 lakh profit to approximately 107.83 lakh loss, while EBITDA margin fell to approximately -5.4% from approximately 5.9% a year earlier.
- PAT quality was weak: 317.50 lakh of other income exceeded the 125.30 lakh consolidated PAT, while the core operating result was loss-making.
- Standalone PAT of 140.99 lakh was reduced to consolidated PAT of 125.30 lakh by the 12.03 lakh associate loss.
- Investment and lending outflows were significant: 6,000.00 lakh invested in associates and 2,592.72 lakh of loans given during H1FY27.
Research and educational content only. Not investment advice.