Gayatri Projects Q2 FY27 Results (NSE: GAYAPROJ)
Signal: Loss reversed
The read
The operating trajectory improved on ₹11,563.31 lakh revenue, +58.1% YoY, and ₹1,277.34 lakh pre-exceptional profit versus a ₹317.74 lakh loss, but the apparent ₹4,793.29 lakh PAT recovery is not durable because ₹3,687.22 lakh came from exceptional reversals and reimbursements; sequential revenue fell 49.5% after the prior quarter's ₹22,877.35 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.63 Cr | 58.1% | -49.5% |
| Net profit | ₹47.93 Cr | N/M from prior loss | |
| EPS | ₹3.09 | N/M from prior loss |
P&L walk
Revenue rose to ₹11,563.31 lakh, +58.1% YoY, while gross margin expanded to 31.6% from 16.3% as raw-material/work expenditure fell to 92.7% of revenue from 122.4%; operating profit before exceptional items was ₹1,277.34 lakh versus a ₹317.74 lakh loss, but PAT of ₹4,793.29 lakh was dominated by ₹3,687.22 lakh of exceptional income.
Key positives
- Revenue from operations reached ₹11,563.31 lakh, +58.1% YoY, reversing the prior-year decline and keeping the construction execution recovery intact despite a -49.5% sequential fall.
- Gross margin expanded to 31.6% from 16.3% YoY as raw-material/work expenditure declined to 92.7% of revenue from 122.4%; the filing does not identify the driver.
- Pre-exceptional profit turned positive at ₹1,277.34 lakh versus a ₹317.74 lakh loss, while finance cost declined 26.2% YoY to ₹378.66 lakh.
- The company states that it paid lenders the entire amount under the approved one-time debt settlement, including the DSRA amount.
- H1FY27 operating cash flow was positive at ₹10,250.27 lakh, while consolidated cash and bank balances were ₹17,183.81 lakh at period end.
Key concerns
- PAT of ₹4,793.29 lakh was supported by ₹3,687.22 lakh of exceptional income, including a ₹4,556.02 lakh reversal of a prior provision, a ₹1,401.60 lakh reimbursement and a ₹557.60 lakh excess-provision write-off; recurring profitability is therefore materially lower.
- Revenue fell 49.5% sequentially from ₹22,877.35 lakh to ₹11,563.31 lakh, while pre-exceptional profit fell 78.2% sequentially from ₹5,861.33 lakh to ₹1,277.34 lakh, highlighting project-execution lumpiness.
- The auditor's emphasis of matter covers ₹15,455.00 lakh of collateral-security enforcement recorded in other current assets, unprovided NCPS investment exposure to loss-making associate Gayatri Highways, and delayed subcontractor recoveries.
- ₹7,483.05 lakh of subcontractor receivables was delayed and ₹4,823.50 lakh was provided as expected credit loss; a further ₹2,802.15 lakh receivable remains subject to recovery correspondence.
- A ₹2,828.00 lakh impairment was recognized on CCCPS investments in Gayatri Hi-tech Hotels, underscoring continued balance-sheet and associate/investment risk.
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