63 Moons Tech. Q2 FY27 Results (NSE: 63MOONS)
Signal: Loss widened
The read
The trajectory remains a scale-without-profitability story: revenue from operations rose to ₹15,317.16 lakh, +650.0% YoY, and EBITDA margin improved to approximately -20.8% from an estimated -56.9% YoY, but both reported segments remained loss-making and operating cash flow was -₹14,549.14 lakh. The consolidated result was also substantially weaker than standalone PAT of ₹1,200.28 lakh because losses sit in subsidiaries and other group operations.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹153.17 Cr | +650.0% | +12.4% |
| Net profit | ₹-28.73 Cr | +27.6% | |
| EPS | ₹-6.24 | -1.8% | |
| EBIT margin | -26.6% |
P&L walk
Revenue from operations increased to ₹15,317.16 lakh, +650.0% YoY and +12.4% QoQ, but cost of goods sold and operating expenses kept EBITDA negative at approximately -20.8% of revenue; ₹5,651.99 lakh of other income softened the operating loss, while attributable loss was ₹2,873.25 lakh.
Segments
Software services / IT Solutions generated ₹15,147.01 lakh of revenue, +683.3% YoY, but still posted a ₹2,640.89 lakh loss; the Others segment also dragged the group with a ₹3,296.80 lakh loss, so the revenue surge has not yet translated into segment profitability.
Key positives
- Consolidated revenue from operations reached ₹15,317.16 lakh, +650.0% YoY and +12.4% QoQ, led by Software services / IT Solutions revenue of ₹15,147.01 lakh, +683.3% YoY.
- Gross margin expanded to 37.3% from -118.9% YoY as cost of goods sold declined to 62.8% of revenue from 219.0%; the filing does not disclose the driver.
- Consolidated attributable loss narrowed 27.6% YoY to ₹2,873.25 lakh, while depreciation rose 17.4% YoY alongside a 5.2% increase in PPE plus CWIP, supporting a clean depreciation-to-capex cross-check.
- Standalone profit reached ₹1,200.28 lakh, +423.6% YoY, with EPS of ₹2.60 versus ₹0.50, although other income was ₹4,617.58 lakh.
Key concerns
- Both reported segments remained loss-making: Software services / IT Solutions lost ₹2,640.89 lakh and Others lost ₹3,296.80 lakh in the quarter.
- EBITDA remained negative at approximately -₹3,178.31 lakh, or -20.8% of revenue, despite revenue growth of 650.0% YoY.
- Operating cash flow was negative ₹14,549.14 lakh while consolidated trade receivables and other financial assets increased materially.
- Other income of ₹5,651.99 lakh exceeded the operating loss before exceptional items, leaving reported profitability dependent on non-operating income.
- The consolidated loss narrowed 27.6% YoY but EPS declined 1.8% to ₹-6.24, triggering a PAT-to-EPS divergence warning.
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