Banswara Syntex Q2 FY27 Results (NSE: BANSWRAS)
Signal: Steady quarter
The read
The trajectory is a sequential profit recovery without a year-on-year earnings turn: consolidated revenue rose 2.1% YoY to ₹35,487.16 lakh and PAT improved 23.9% QoQ to ₹571.49 lakh, but PAT remained 19.3% below the year-ago ₹708.40 lakh and EPS fell 26.1% to ₹1.67. The immediate watchpoint is whether lower finance costs and stronger cash generation persist while the subsidiary remains loss-making.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹354.87 Cr | +2.1% | +12.4% |
| Net profit | ₹5.71 Cr | -19.3% | |
| EPS | ₹1.67 | -26.1% |
P&L walk
Q2 consolidated revenue was ₹35,487.16 lakh, +2.1% YoY and +12.4% QoQ; PAT was ₹571.49 lakh, -19.3% YoY but +23.9% QoQ, with the year-on-year shortfall concentrated in operating profit before tax and partly offset by lower finance costs.
Segments
The company reports a single operating segment, Textiles; consolidated PAT of ₹571.49 lakh exceeded standalone PAT of ₹557.39 lakh because the joint venture contributed ₹42.75 lakh while Banswara Brands reported a ₹80.85 lakh quarterly loss.
Key positives
- Consolidated revenue reached ₹35,487.16 lakh, +2.1% YoY and +12.4% QoQ, indicating sequential recovery after Q1 revenue of ₹31,582.73 lakh.
- Finance costs fell 14.0% YoY and 46.6% QoQ to ₹1,136.39 lakh, providing a clear sequential lift to profitability.
- H1 operating cash flow rose to ₹12,082.20 lakh from ₹2,466.75 lakh in H1FY26, materially exceeding reported H1 PAT of ₹1,235.23 lakh.
Key concerns
- Consolidated PAT declined 19.3% YoY to ₹571.49 lakh despite revenue growth of 2.1%, showing that top-line recovery has not yet translated into year-on-year earnings growth.
- Banswara Brands Private Limited reported a quarterly net loss of ₹80.85 lakh and H1 loss of ₹152.97 lakh, creating a drag on the group despite the joint venture's ₹42.75 lakh quarterly profit contribution.
- EPS fell 26.1% YoY to ₹1.67, materially faster than the 19.3% PAT decline, warranting monitoring of dilution or minority-interest effects.
Research and educational content only. Not investment advice.