Arvind SmartSp. Q2 FY27 Results (NSE: ARVSMART)
Signal: Growth decelerated
The read
The key inflection is sequential recovery: consolidated revenue rose to ₹24227.58 lakh, +23.6% QoQ, and EBIT reached ₹3578.46 lakh, +100.5% YoY; however, PAT of ₹2529.66 lakh remains well below the ₹9700-lakh scale implied by the preceding Q1 peak, so execution and cash conversion across subsidiaries remain the thesis drivers.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹242.28 Cr | +70.5% | +23.6% |
| EBIT | ₹35.78 Cr | +100.5% | |
| Net profit | ₹25.3 Cr | +41.7% | |
| EPS | ₹5.5 | +78.0% | |
| EBIT margin | 14.8% |
P&L walk
Consolidated revenue was ₹24227.58 lakh, +70.5% YoY and +23.6% QoQ, while EBIT was ₹3578.46 lakh, +100.5% YoY; PAT of ₹2529.66 lakh grew +41.7% as operating profit expanded faster than revenue.
Segments
No segment table is disclosed, but consolidated PAT of ₹2529.66 lakh exceeded standalone PAT of ₹1980.25 lakh, indicating that subsidiaries and the joint venture added ₹549.41 lakh to group profit.
Key positives
- Consolidated revenue reached ₹24227.58 lakh, +70.5% YoY and +23.6% QoQ, reversing the prior-quarter sequential slowdown.
- EBIT of ₹3578.46 lakh grew +100.5% YoY, materially faster than revenue growth of +70.5%.
- Standalone PAT of ₹1980.25 lakh plus subsidiary and joint-venture contribution produced consolidated PAT of ₹2529.66 lakh.
- Standalone half-year operating cash flow was positive at ₹4337.57 lakh, providing support for the stated FY27 cash-flow objective of ₹400-500 crore.
Key concerns
- PAT of ₹2529.66 lakh grew +41.7% YoY, materially slower than EBIT growth of +100.5%, so the bottom-line conversion needs monitoring.
- Current-quarter consolidated revenue of ₹24227.58 lakh remains below the company’s recent Q1 revenue peak of ₹31763.45 lakh, indicating lumpy project recognition.
- The business remains dependent on subsidiaries and project entities: consolidated PAT exceeded standalone PAT by ₹549.41 lakh.
- The company’s FY27 targets require substantial execution, including ₹400-500 crore of operating cash flow and ₹600-900 crore of land/business-development deployment.
Research and educational content only. Not investment advice.