Asian Star Co. Q2 FY27 Results (NSE: ASTAR)
Signal: Revenue declined
The read
The quarter marks a profit inflection without a revenue inflection: consolidated PAT rose 29.42% to Rs. 1,514.38 lakh and EBITDA margin improved 81bps to 4.02%, but revenue fell 19.10% and both diamonds and jewellery segment profits declined more than 40% YoY. The earnings recovery is therefore currently dependent on lower finance costs and cost control, while H1 operating cash flow weakened to Rs. 139.89 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹614.37 Cr | -19.10% | -5.10% |
| EBIT | ₹22.16 Cr | +0.78% | |
| Net profit | ₹15.14 Cr | +29.42% | |
| EPS | ₹9.46 | +29.41% | |
| EBIT margin | 4.02% |
P&L walk
Revenue declined to Rs. 61,436.87 lakh, down 19.10% YoY and 5.10% QoQ, while EBITDA rose 1.23% YoY to Rs. 2,469.87 lakh on lower materials, processing and finance costs; PAT increased 29.42% to Rs. 1,514.38 lakh, helped by lower finance cost and tax.
Segments
Diamonds remains the largest unit at Rs. 43,599.97 lakh revenue but dragged results with segment profit down 48.83% YoY to Rs. 681.91 lakh; jewellery revenue fell 14.92% and profit fell 41.99%, while the Others segment contributed Rs. 1,028.19 lakh of revenue and result.
Key positives
- Consolidated PAT rose 29.42% YoY to Rs. 1,514.38 lakh despite a 19.10% revenue decline, supported by finance costs falling 31.31% to Rs. 457.10 lakh.
- Standalone PAT increased 48.51% YoY to Rs. 1,466.43 lakh and standalone EBITDA margin expanded 109bps to 4.75%.
- EPS rose 29.41% YoY to Rs. 9.46, tracking PAT with no material dilution signal.
- Consolidated H1 short-term borrowings declined to Rs. 43,663.69 lakh from Rs. 44,092.03 lakh.
Key concerns
- Consolidated revenue fell 19.10% YoY to Rs. 61,436.87 lakh, with diamonds revenue down 21.48% and jewellery revenue down 14.92%.
- Diamonds segment profit fell 48.83% YoY to Rs. 681.91 lakh and jewellery segment profit fell 41.99% to Rs. 505.49 lakh, indicating pressure across both core businesses.
- H1 operating cash flow dropped to Rs. 139.89 lakh from Rs. 1,794.15 lakh despite H1 consolidated PAT of Rs. 2,719.34 lakh, reflecting weak cash conversion.
- Standalone EBITDA margin expansion of 109bps does not meet the full operating-leverage threshold because employee costs declined only 2.30% YoY while revenue declined 18.23% on the standalone net-sales line.
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