Essar Shipping Q2 FY27 Results (NSE: ESSARSHPNG)
Signal: Slipped to loss
The read
The earnings trajectory deteriorated sharply: standalone operating revenue stayed at just ₹0.04 crore while the company reported a ₹7.23 crore loss, after Q1FY27's ₹230.41 crore consolidated PAT was driven by a large exceptional gain; the current ₹0.93 crore exceptional income again does not cover the ₹7.23 crore operating deficit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.04 Cr | +300.0% | 0.0% |
| Net profit | ₹-7.23 Cr | -107.4% | |
| EPS | ₹-0.35 | -107.4% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue remained negligible at ₹0.04 crore, while ₹7.23 crore of pre-exceptional operating loss and ₹3.85 crore of finance costs drove a ₹7.23 crore reported loss; the ₹0.93 crore exceptional gain was insufficient to offset the operating deficit.
Key positives
- Finance costs declined 57.5% YoY to ₹3.85 crore from ₹9.05 crore, although they still exceeded operating revenue by 96 times.
- H1FY27 operating cash flow was positive at ₹0.22 crore, supported by working-capital movements and despite an H1 loss of ₹11.75 crore before tax after exceptional items.
- The company has received approval to sell Essar Tug III, with completion expected on or before 31 March 2027 and no consideration received as of the filing date.
Key concerns
- Operating revenue was only ₹0.04 crore, unchanged sequentially, against ₹7.36 crore of quarterly expenses and ₹3.85 crore of finance costs.
- PAT deteriorated from ₹97.53 crore profit in Q2FY26 to a ₹7.23 crore loss because exceptional income fell to ₹0.93 crore from ₹97.53 crore.
- Net worth is eroded, with accumulated losses of approximately ₹979.78 crore against share capital and reserves of approximately ₹521.82 crore.
- Property, plant and equipment fell to ₹1.16 crore from ₹1.54 crore at 31 March 2026, while the operating business generated only ₹0.22 crore of H1 cash from operations.
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