Gretex Corporate Q2 FY27 Results (NSE: GCSL)
Signal: Steady quarter
The read
The trajectory is increasingly subsidiary-led: standalone revenue fell 30.9% YoY to ₹96.12 lakh and PAT fell 79.5% to ₹166.09 lakh, while the broking subsidiary reported ₹10,824.53 lakh revenue and ₹1,618.46 lakh PAT; consolidated EPS nevertheless declined 65.3% YoY to ₹1.98, highlighting earnings volatility and dilution after 8,46,033 warrant-conversion shares were issued.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| EPS | ₹1.98 | -65.3% | |
| EBIT margin | N/A |
P&L walk
The consolidated earnings base is materially different from the parent: Gretex Share Broking Limited reported ₹10,824.53 lakh revenue and ₹1,618.46 lakh PAT for the reported period, while the group also included ₹137.24 lakh of associate profit and ₹7.47 lakh of joint-venture loss.
Segments
There is no reportable segment split, but the consolidated result is being driven by Gretex Share Broking Limited, which disclosed ₹10,824.53 lakh revenue and ₹1,618.46 lakh PAT versus the parent's ₹96.12 lakh revenue and ₹166.09 lakh PAT for the quarter.
Key positives
- Gretex Share Broking Limited reported ₹10,824.53 lakh revenue and ₹1,618.46 lakh PAT for the reported period, making it the key earnings engine.
- The group reported ₹137.24 lakh of associate profit for H1FY27, partly offset by a ₹7.47 lakh joint-venture loss.
- Consolidated H1 operating cash flow was ₹3,101.33 lakh, versus standalone operating cash flow of negative ₹2,168.62 lakh, reinforcing the subsidiary-led nature of cash generation.
Key concerns
- Standalone revenue fell 30.9% YoY to ₹96.12 lakh and standalone PAT fell 79.5% YoY to ₹166.09 lakh, showing weakness in the parent merchant-banking operation.
- Consolidated basic EPS fell 65.3% YoY to ₹1.98 and 50.1% QoQ to ₹1.98 from ₹3.97, despite the subsidiary's large reported contribution.
- Standalone operating cash flow was negative ₹2,168.62 lakh for H1FY27 against standalone PBT of ₹518.36 lakh, with trade receivables rising to ₹900.87 lakh from ₹403.46 lakh and other current assets rising to ₹2,845.01 lakh from ₹617.60 lakh.
- The company issued 8,46,033 shares on conversion of preferential warrants at ₹358 per warrant, increasing the share count and requiring per-share earnings to be monitored separately from absolute PAT.
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