Emk.Global Fin. Q2 FY27 Results (NSE: EMKAY)
Signal: Loss reversed
The read
The operating inflection is real: standalone revenue reached ₹14,151.31 lakh, +122.6% YoY, and PBT swung from a ₹298.91 lakh loss to ₹3,870.66 lakh profit, led by fee income rather than other income; however, the ₹6,454.23 lakh H1 operating cash outflow and 40.3% PPE increase make cash conversion and asset productivity the next trajectory tests.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹141.51 Cr | +122.6% | +70.5% |
| EBIT | ₹38.71 Cr | +1395.0% | |
| Net profit | ₹29.55 Cr | +1502.5% | |
| EPS | ₹10.84 | +1406.0% | |
| EBIT margin | 27.35% |
P&L walk
Standalone revenue increased to ₹14,151.31 lakh, +122.6% YoY and +70.5% QoQ, led by fees and commission income; PBT swung to ₹3,870.66 lakh from a ₹298.91 lakh loss, while finance costs rose 85.0% YoY and operating cash flow stayed negative at ₹6,454.23 lakh in H1FY27.
Key positives
- Fees and commission income reached ₹12,467.69 lakh, +113.5% YoY and +84.6% QoQ, making the revenue rebound operational rather than other-income-led.
- Operating margin expanded to 27.35% from negative 4.70% YoY, as total expenses of ₹10,723.37 lakh grew 50.9% against revenue growth of 122.6%.
- PAT recovered to ₹2,954.65 lakh from a ₹210.64 lakh loss, while other income remained broadly stable at ₹442.72 lakh versus ₹448.72 lakh YoY.
- Basic EPS rose to ₹10.84 from negative ₹0.83 YoY, broadly tracking the PAT recovery.
Key concerns
- Operating cash flow was negative at ₹6,454.23 lakh in H1FY27 versus negative ₹2,610.13 lakh in H1FY26 despite H1 PAT of ₹3,619.30 lakh.
- Finance costs increased 85.0% YoY to ₹714.15 lakh, while the debt-equity ratio rose to 0.64 from 0.42 at March 2026.
- Employee benefits expense increased 53.3% YoY to ₹5,618.88 lakh, which could limit margin durability if fee growth normalises.
- PPE increased to ₹4,250.80 lakh from ₹3,029.91 lakh while depreciation remained almost flat at ₹287.38 lakh, requiring monitoring of asset utilisation and depreciation recognition.
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