Armee Infotech Q2 FY27 Results (NSE: ARMEE)
Signal: Slipped to loss
The read
This is a sharp post-listing deceleration: consolidated revenue fell to ₹7,326.21 lakh, down 29.90% YoY and 73.45% QoQ, after ₹27,579.38 lakh in Q1FY27; the ₹271.83 lakh IPO-related charge drove PAT to a ₹231.52 lakh loss, while H1 CFO deteriorated to negative ₹6,854.10 lakh. The key trajectory issue is that the prior quarter's ₹181.52 lakh PAT and 2.52% OPM did not carry into Q2.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹73.26 Cr | -29.90% | -73.45% |
| EBIT | ₹1.96 Cr | N/M | |
| Net profit | ₹-2.32 Cr | N/M | |
| EPS | ₹-0.73 | N/M | |
| EBIT margin | 5.13% |
P&L walk
Revenue fell to ₹7,326.21 lakh, down 29.90% YoY and 73.45% QoQ; EBITDA remained positive before the ₹271.83 lakh IPO-related charge, but finance costs of ₹215.30 lakh and the exceptional item drove PAT to a ₹231.52 lakh loss.
Segments
The IT Infrastructure segment generated ₹7,326.21 lakh of revenue and ₹365.35 lakh of segment result, while Renewable Energy reported ₹0 lakh of revenue but ₹535 lakh of segment result; the consolidated result was therefore dragged by the ₹271.83 lakh IPO-related charge and unallocated costs rather than by a disclosed renewable-energy revenue contribution.
Key positives
- Consolidated PP&E plus CWIP increased to ₹10,107.44 lakh from ₹8,745.05 lakh at March 31, 2026, and depreciation rose to ₹278.32 lakh in H1FY27 from ₹141.59 lakh, indicating assets are beginning to enter the depreciation base.
- Renewable Energy reported a ₹535 lakh segment result despite ₹0 lakh reported revenue in the quarter; this is a disclosed profitability contribution but requires reconciliation with the revenue line.
- Consolidated bank balances and cash were ₹30,415.80 lakh at September 30, 2026, supported by ₹30,000 lakh of equity issuance proceeds.
Key concerns
- Consolidated revenue fell 29.90% YoY to ₹7,326.21 lakh and 73.45% QoQ from ₹27,579.38 lakh, reversing the prior quarter's growth profile.
- H1 operating cash flow was negative ₹6,854.10 lakh versus negative ₹2,757.37 lakh in H1FY26, despite operating profit before working-capital changes of ₹1,085.33 lakh.
- Finance costs were ₹215.30 lakh in the consolidated quarter, up 393.17% YoY, while the company also carried ₹21,226.74 lakh of borrowings at September 30, 2026.
- The filing does not disclose IT-services operating KPIs such as deal wins, bookings, utilisation, attrition or headcount, limiting visibility into the revenue recovery path.
Research and educational content only. Not investment advice.