Aayush Art H1FY27 Results (BSE: 540718)
Signal: Margin expansion
The read
The H1FY27 inflection is a 315bps gross-margin expansion that lifted EBITDA margin to 6.71% and PAT to ₹369.46 lakh, but earnings quality is tempered by negative operating cash flow of ₹117.38 lakh and trade receivables of ₹15,625.00 lakh, which rose 57.8% from 31-Mar-26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹74.32 Cr | 55.9% | N/A |
| Net profit | ₹3.69 Cr | 908.1% | |
| EPS | ₹2.41 | 904.2% | |
| EBIT margin | 6.71% |
P&L walk
Standalone H1 revenue rose 55.9% to ₹7,432.45 lakh, while gross margin expanded to 7.35% from 4.20% as stock-in-trade costs fell to 92.66% of revenue from 95.80%; EBITDA rose 812.9% to ₹498.97 lakh and PAT rose 908.1% to ₹369.46 lakh, but operating cash flow was negative ₹117.38 lakh.
Key positives
- Revenue increased 55.9% to ₹7,432.45 lakh, although the filing provides no volume or realisation split.
- Gross margin expanded 315bps to 7.35% as stock-in-trade costs declined to 92.66% of revenue from 95.80%; the driver was not disclosed.
- EBITDA rose 812.9% to ₹498.97 lakh and EBITDA margin expanded 556bps to 6.71%, aided by lower employee-plus-other expenses of ₹47.14 lakh versus ₹145.75 lakh.
- Finance costs remained nil and paid-up capital was unchanged at ₹1,531.22 lakh, while EPS rose 904.2% to ₹2.41.
Key concerns
- Operating cash flow was negative ₹117.38 lakh despite PAT of ₹369.46 lakh, indicating weak cash conversion.
- Trade receivables increased to ₹15,625.00 lakh from ₹9,899.77 lakh at 31-Mar-26, a 57.8% rise against H1 revenue growth of 55.9%.
- The filing does not disclose sales volumes, realisations, customer concentration or the reason for the 315bps gross-margin expansion, limiting visibility into repeatability.
Research and educational content only. Not investment advice.