FCS Software Q2 FY27 Results (NSE: FCSSOFT)
Signal: Loss reversed
The read
The Q2FY27 inflection is the revenue recovery: consolidated revenue rose 86.2% YoY to ₹1,529.01 lakh after the Q2FY26 loss base, with outside India turning profitable at ₹57.55 lakh and PAT reaching ₹20.10 lakh; however, ₹152.00 lakh of other income versus ₹58.20 lakh of pre-tax profit and the sequential revenue decline of 5.1% leave operating momentum unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹15.29 Cr | +86.2% | -5.1% |
| Net profit | ₹0.2 Cr | N/A | |
| EPS | ₹0 | N/A | |
| EBIT margin | N/A |
P&L walk
Revenue rose to ₹1,529.01 lakh, +86.2% YoY but -5.1% QoQ, and PAT recovered to ₹20.10 lakh from a year-ago loss; the result was supported by ₹152.00 lakh of other income and an outside-India segment turnaround.
Segments
India drove the group with ₹1,133.02 lakh of revenue and ₹344.73 lakh of segment result, while outside India turned around to a ₹57.55 lakh profit from a ₹128.42 lakh loss YoY; consolidation lifted revenue to ₹1,529.01 lakh versus standalone revenue of ₹912.07 lakh.
Key positives
- Consolidated revenue reached ₹1,529.01 lakh, up 86.2% YoY, led by India revenue growth of 96.4% to ₹1,133.02 lakh.
- Outside India segment result turned positive at ₹57.55 lakh from a ₹128.42 lakh loss YoY, indicating a material geographic turnaround.
- Cash flow from operations improved to ₹1,240.20 lakh in H1FY27 from an outflow of ₹1,266.20 lakh in H1FY26.
- The company remains debt-free on the disclosed balance sheet, with consolidated cash and equivalents of ₹1,402.82 lakh.
Key concerns
- Revenue declined 5.1% QoQ to ₹1,529.01 lakh after the sharp Q4FY26 and Q1FY27 rebound, so the recovery has not yet demonstrated consistent sequential momentum.
- Other income of ₹152.00 lakh was more than twice consolidated pre-tax profit of ₹58.20 lakh, making reported PAT of ₹20.10 lakh sensitive to non-operating income.
- Standalone EPS was only ₹0.000 despite positive standalone PAT of ₹3.58 lakh, while consolidated EPS remained just ₹0.002.
- Employee benefits expense was ₹514.50 lakh and the filing does not provide enough legible quarterly cost detail to establish operating-margin durability.
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