Shankara Buildpro Q2 FY27 Results (NSE: BUILDPRO)
Signal: Growth reaccelerated
The read
The trajectory is a revenue acceleration with profit conversion: consolidated revenue rose 43.0% YoY to ₹2,280.38 crore and PAT attributable to owners rose 56.8% to ₹45.98 crore, but gross margin contracted about 243bps to 5.1%, making the approximately 3.4% operating margin recovery dependent on expense control rather than merchandise-margin expansion. H1 CFO fell 22.4% YoY to ₹30.00 crore as receivables and inventories absorbed cash.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,280.38 Cr | 43.0% | 20.7% |
| EBIT | ₹73.89 Cr | 23.6% | |
| Net profit | ₹45.98 Cr | 56.8% | |
| EPS | ₹0.17 | 325.0% | |
| EBIT margin | 3.4% |
P&L walk
Consolidated revenue was ₹2,280.38 crore, +43.0% YoY and +20.7% QoQ, but gross margin compressed to about 5.1% from 7.5% YoY as purchases and inventory costs rose faster than sales; EBITDA margin nevertheless recovered to about 3.4% and PAT attributable to owners rose 56.8% to ₹45.98 crore.
Segments
The company remains a single reportable trading and retailing segment; the subsidiary contributed ₹1.65 crore of quarterly revenue and ₹0.28 crore of comprehensive income, leaving consolidated PAT ₹0.07 crore above standalone PAT.
Key positives
- Consolidated revenue reached ₹2,280.38 crore, +43.0% YoY and +20.7% QoQ, accelerating from Q1FY27's 20.5% YoY growth.
- PAT attributable to owners increased 56.8% YoY to ₹45.98 crore, while operating margin improved approximately 30bps YoY to 3.4%.
- Operating expenses grew slower than revenue: employee benefits, finance costs, depreciation and other expenses rose approximately 28.3% YoY versus 43.0% revenue growth.
- Standalone and consolidated results were closely aligned, with standalone PAT of ₹45.91 crore and consolidated PAT attributable to owners of ₹45.98 crore.
Key concerns
- Gross margin compressed approximately 243bps YoY to 5.1%, with purchases plus inventory movement reaching 94.9% of consolidated revenue; the filing does not disclose the cause.
- H1 operating cash flow declined 22.4% YoY to ₹30.00 crore despite H1 PAT of ₹81.93 crore, as trade receivables reached ₹1,053.79 crore and inventories ₹582.56 crore.
- Finance costs rose 23.7% YoY to ₹11.89 crore and net debt increased to approximately ₹7.99 crore by September 30, 2026.
- The reported EPS comparison is distorted by the 1:5 split, with basic EPS at ₹0.17 versus ₹0.04 in the year-ago column.
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