Novus Loyalty H1FY27 Results (BSE: 544735)
Signal: Steady quarter
The read
The key inflection is growth without conversion: H1 revenue rose 37.1% YoY to 9,789.96 lakh and PAT rose 32.3% to 756.56 lakh, but operating cash flow was negative 519.24 lakh as inventories reached 798.41 lakh and receivables 279.98 lakh; dilution also caused EPS to fall 1.0% to 4.87.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹97.9 Cr | +37.1% | N/A |
| Net profit | ₹7.57 Cr | +32.3% | |
| EPS | ₹4.87 | -1.0% | |
| EBIT margin | N/A |
P&L walk
Revenue increased 37.1% YoY to 9,789.96 lakh, but direct expenses rose 47.3% YoY to 7,539.94 lakh and EBITDA is not disclosed; PAT nevertheless rose 32.3% to 756.56 lakh, while EPS declined 1.0% to 4.87 because paid-up share capital increased to 1,555.02 lakh.
Key positives
- Revenue increased 37.1% YoY to 9,789.96 lakh, exceeding the 21.79% three-year sales CAGR shown in the fundamentals.
- PAT increased 32.3% YoY to 756.56 lakh despite other income declining 56.4% YoY to 95.60 lakh, indicating the bottom-line increase was not dependent on higher treasury or non-operating income.
- Other expenses grew 25.0% YoY to 1,489.99 lakh, slower than revenue growth, reducing other-expense intensity to 15.2% of revenue from 16.7%.
Key concerns
- Operating cash flow was negative 519.24 lakh despite PAT of 756.56 lakh, with inventories at 798.41 lakh and trade receivables at 279.98 lakh.
- Direct expenses rose 47.3% YoY to 7,539.94 lakh, faster than revenue growth of 37.1%, increasing direct-cost intensity to 77.0% from 71.7%.
- EPS declined 1.0% to 4.87 even as PAT grew 32.3%, reflecting dilution from the increase in paid-up share capital to 1,555.02 lakh from 1,225.02 lakh.
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