Cospower Engine. H1FY27 Results (BSE: 543172)
Signal: Steady quarter
The read
The operating inflection is scale rather than margin: H1FY27 revenue rose 87.2% to ₹6093.72 lakh while gross margin stayed broadly flat at 31.8% versus 31.9%; the key risks are higher borrowings of ₹3365.73 lakh, only ₹176.60 lakh of operating cash flow, and the printed PAT-to-EPS inconsistency.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹60.94 Cr | +87.2% | N/A |
| Net profit | ₹5.91 Cr | +678.6% | |
| EPS | ₹35.32 | +161.9% |
P&L walk
Standalone revenue increased 87.2% YoY to ₹6093.72 lakh, while raw-material consumption rose 120.2% and employee costs rose 182.8%; PAT increased to ₹591.38 lakh, but the printed PAT of ₹75.93 lakh for the prior period does not reconcile with the printed prior EPS of ₹13.49.
Key positives
- Revenue increased 87.2% YoY to ₹6093.72 lakh from ₹3254.97 lakh, indicating continued high growth.
- PAT increased to ₹591.38 lakh from the printed ₹75.93 lakh, while other income declined 34.3% to ₹45.95 lakh; the reported profit increase was therefore not led by other income.
- Fixed assets increased 43.9% to ₹1843.63 lakh and depreciation increased 18.6% to ₹97.79 lakh, a clean depreciation-to-asset-base relationship.
Key concerns
- Raw-material consumption increased 120.2% to ₹4712.47 lakh and rose to 77.3% of revenue from 65.8%, while gross margin was broadly flat at 31.8% versus 31.9%.
- Employee benefits expense increased 182.8% to ₹506.91 lakh and rose to 8.3% of revenue from 5.5%, absorbing part of the revenue scale benefit.
- Operating cash flow was only ₹176.60 lakh against PAT of ₹591.38 lakh, with inventories increasing by ₹553.62 lakh and trade receivables by ₹494.13 lakh.
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