Authum Invest Q2 FY27 Results (NSE: AIIL)
Signal: Earnings declined
The read
The trajectory has shifted from Q1FY27's ₹1,111.26 Cr PAT to ₹418.00 Cr in Q2FY27: revenue remained 12.6% above the year-ago quarter, but pre-tax profit fell 8.4% and tax expense swung to ₹75.79 Cr from a ₹228.11 Cr prior-year credit. Lending activity improved 24.8% YoY, but investment activity profit contracted 14.6% and operating cash flow was negative at ₹304.35 Cr in H1FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹685.44 Cr | +12.6% | -53.9% |
| Net profit | ₹418 Cr | -45.5% | |
| EPS | ₹4.92 | -89.1% | |
| EBIT margin | 0% |
P&L walk
Total income increased 12.6% YoY to ₹685.44 Cr, but higher operating expenses of ₹185.25 Cr versus ₹69.63 Cr and a ₹43.51 Cr impairment charge versus a prior-year ₹20.28 Cr credit reduced pre-tax profit 8.4% to ₹493.79 Cr; PAT then fell 45.5% to ₹418.00 Cr as tax expense rose to ₹75.79 Cr from a prior-year tax credit of ₹228.11 Cr.
Segments
Lending activity was the relative growth driver, with revenue up 24.8% YoY to ₹320.71 Cr and segment result broadly stable at ₹236.96 Cr, while investment activity revenue rose only 1.9% to ₹348.63 Cr and segment result fell 14.6% to ₹256.99 Cr; investment activity still contributed the largest segment asset base at ₹18,583.66 Cr.
Key positives
- Total income increased 12.6% YoY to ₹685.44 Cr despite a 53.9% sequential decline, with lending activity revenue up 24.8% YoY to ₹320.71 Cr.
- Loans increased 9.7% YoY to ₹2,202.22 Cr, indicating continued balance-sheet expansion in the lending book.
- Property, Plant and Equipment increased to ₹279.97 Cr from ₹256.33 Cr while depreciation rose 104.2% YoY to ₹9.68 Cr, a clean depreciation-to-asset-base cross-check.
- Investment activity remained the largest contributor, generating ₹256.99 Cr of segment result and holding ₹18,583.66 Cr of segment assets.
Key concerns
- PAT declined 45.5% YoY to ₹418.00 Cr despite revenue growth, as PBT fell 8.4% to ₹493.79 Cr and tax expense rose to ₹75.79 Cr from a prior-year tax credit of ₹228.11 Cr.
- Investment activity segment result fell 14.6% YoY to ₹256.99 Cr, while investment activity revenue increased only 1.9% to ₹348.63 Cr.
- Operating cash flow was negative ₹304.35 Cr in H1FY27 versus positive ₹562.29 Cr in H1FY26, despite H1 PAT of ₹1,529.26 Cr.
- Finance costs rose 45.6% YoY to ₹61.88 Cr, materially faster than total income growth of 12.6%.
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