GOCL Corpn. Q2 FY27 Results (NSE: GOCLCORP)
Signal: Margin pressure
The read
The quarter shows revenue recovery but no operating-quality inflection: revenue rose 85.0% YoY to ₹410.63 lakh, yet gross margin compressed 4111bps to 56.1%, EMS remained loss-making at ₹213.68 lakh, and PAT of ₹4,050.11 lakh was still supported by ₹6,265.12 lakh of other income and ₹514.23 lakh from discontinued operations. The reported EPS increase to ₹8.47 despite a 45.3% PAT decline is a material data-quality warning.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4.11 Cr | +85.0% | -2.4% |
| EBIT | ₹47.32 Cr | +41.3% | |
| Net profit | ₹40.5 Cr | -45.3% | |
| EPS | ₹8.47 | +199.3% | |
| EBIT margin | 1173.4% |
P&L walk
Revenue rose to ₹410.63 lakh, +85.0% YoY but -2.4% QoQ, while gross margin collapsed to 56.1% from 97.2% as material and inventory costs rose; EBIT increased 41.3% to ₹4,732.03 lakh because other income remained ₹6,265.12 lakh, but PAT declined 45.3% to ₹4,050.11 lakh.
Segments
Realty turned profitable at ₹4.18 lakh from a ₹177.08 lakh loss YoY, while Electronics Manufacturing Services revenue rose 381.7% to ₹244.13 lakh but its loss widened to ₹213.68 lakh; the consolidated result is primarily lifted by ₹6,267.02 lakh of unallocable income rather than either operating segment.
Key positives
- Consolidated revenue increased 85.0% YoY to ₹410.63 lakh, although it declined 2.4% QoQ.
- Borrowings fell to nil from ₹81.52 lakh at March 31, 2026, and finance cost declined 99.9% YoY to ₹1.45 lakh.
- H1 operating cash flow turned positive at ₹2,886.88 lakh versus an outflow of ₹2,202.25 lakh in the prior-year period.
- Realty segment result turned positive at ₹4.18 lakh from a ₹177.08 lakh loss YoY.
- Discontinued operations reported a ₹514.23 lakh profit versus a ₹825.86 lakh loss in the year-ago quarter.
Key concerns
- Gross margin compressed 4111bps YoY to 56.1% as material costs rose to 36.2% of revenue from 33.8%; management did not disclose the driver.
- EMS revenue rose 381.7% YoY to ₹244.13 lakh, but its segment loss widened to ₹213.68 lakh from ₹36.95 lakh.
- Other income of ₹6,265.12 lakh was over 15 times operating revenue of ₹410.63 lakh, leaving reported profitability highly dependent on non-core income.
- PAT fell 45.3% YoY to ₹4,050.11 lakh, while the EPS line rose 199.3% to ₹8.47, requiring reconciliation.
Research and educational content only. Not investment advice.