Aditya AMC Q2 FY27 Results (NSE: ABSLAMC)
Signal: Margin pressure
The read
The key inflection is cost pressure rather than demand: revenue growth improved to +4.9% YoY from +3.6% in Q1FY27, but employee expense accelerated to +32.8%, pushing the calculated operating margin down to 55.4% from 61.3% YoY and PAT down 8.4%; the margin trajectory needs to recover before the recent earnings momentum can be considered durable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹483.81 Cr | +4.9% | +4.5% |
| Net profit | ₹220.98 Cr | -8.4% | |
| EPS | ₹7.64 | -8.6% | |
| EBIT margin | 55.4% |
P&L walk
Consolidated revenue from operations increased to ₹483.81 Cr, +4.9% YoY and +4.5% QoQ, but EBITDA proxy margin fell to 55.4% from 61.3% YoY as employee expense rose 32.8%; PAT declined to ₹220.98 Cr, -8.4% YoY, with other income lower at ₹42.38 Cr.
Segments
There are no reportable operating segments; subsidiaries dragged consolidated PAT, with four subsidiaries reporting quarterly revenue of ₹10.2 Cr and a combined net loss of ₹3.2 Cr, leaving consolidated PAT at ₹220.98 Cr versus standalone PAT of ₹224.21 Cr.
Key positives
- Consolidated revenue from operations rose to ₹483.81 Cr, +4.9% YoY and +4.5% QoQ, improving from +3.6% YoY in Q1FY27.
- H1 operating cash flow remained strong at ₹381.67 Cr versus ₹383.84 Cr YoY despite lower reported profit.
- Other income was ₹42.38 Cr, -6.1% YoY, so current-quarter PAT was less reliant on a sharp increase in non-operating income than the prior quarter.
Key concerns
- Employee benefit expense rose 32.8% YoY to ₹126.26 Cr against revenue growth of 4.9%, reducing the calculated operating margin to 55.4% from 61.3%.
- Consolidated PAT declined 8.4% YoY to ₹220.98 Cr and 28.6% QoQ, reversing the +11.5% YoY PAT growth reported in Q1FY27.
- The consolidated group included subsidiary losses of ₹3.2 Cr for the quarter, leaving PAT ₹3.23 Cr below standalone PAT.
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