Adit.Birla Money Q2 FY27 Results (NSE: BIRLAMONEY)
Signal: Margin pressure
The read
The trajectory improved from Q1FY27's 27.6% PAT decline to 7.4% PAT growth, but the quality of recovery is mixed: revenue grew 29.3% while operating margin compressed 213bps YoY to 11.21%, finance costs jumped 53.8%, and operating cash flow turned negative at ₹16,099.29 lakh in H1FY27. Wholesale debt-market profit growth is offsetting weaker Broking profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹137.69 Cr | +29.3% | +5.3% |
| EBIT | ₹15.43 Cr | +8.6% | |
| Net profit | ₹10.89 Cr | +7.4% | |
| EPS | ₹1.93 | +7.2% | |
| EBIT margin | 11.21% |
P&L walk
Operating revenue rose to ₹13,769.49 lakh, +29.3% YoY and +5.3% QoQ, but operating margin contracted to 11.21% from 13.34% as finance costs grew 53.8%; PAT still increased 7.4% to ₹1,089.31 lakh, supported by operating profit growth and a lower effective tax burden.
Segments
Wholesale debt market is driving profitability: its segment result rose 25.1% YoY to ₹1,182.00 lakh despite revenue growth of 29.9%, while Broking revenue rose 29.3% to ₹10,741.41 lakh but segment result fell 17.7% to ₹350.51 lakh; Others remained loss-making at ₹8.94 lakh.
Key positives
- Operating revenue reached ₹13,769.49 lakh, up 29.3% YoY, with interest income up 30.3% and net fair-value gains up 81.4%.
- Wholesale debt-market segment result increased 25.1% YoY to ₹1,182.00 lakh and contributed the majority of total segment result of ₹1,523.57 lakh.
- PAT recovered to 7.4% YoY growth at ₹1,089.31 lakh from the prior quarter's reported 27.6% YoY decline, while EPS rose 7.2% to ₹1.93.
Key concerns
- Operating margin contracted to 11.21% from 13.34% YoY and 11.78% in Q1FY27, despite 29.3% revenue growth.
- Finance costs rose 53.8% YoY to ₹4,612.46 lakh, pushing the debt-equity ratio to 7.34x from 6.48x and interest coverage down to 1.42x from 1.58x.
- Broking segment result fell 17.7% YoY to ₹350.51 lakh even as Broking revenue grew 29.3% to ₹10,741.41 lakh.
- Operating cash flow was negative at ₹16,099.29 lakh in H1FY27 versus ₹1,795.66 lakh generated in H1FY26, with loans increasing to ₹1,40,451.12 lakh from ₹1,03,814.75 lakh at March 31, 2026.
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