Hercules Investments Q2 FY27 Results (NSE: HERCULES)
Signal: Margin expansion
The read
The earnings inflection continued from Q1FY27, with revenue rising to ₹890.88 lakh, +62.3% YoY, and the implied operating margin expanding to 97.0% from 95.7%; however, PAT of ₹898.14 lakh includes a ₹23.75 lakh deferred-tax credit and the 73.5% EPS growth is inconsistent with the 4683.1% PAT growth, making earnings quality and per-share reconciliation the key follow-up.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8.91 Cr | +62.3% | +2023.6% |
| Net profit | ₹8.98 Cr | +4683.1% | |
| EPS | ₹2.81 | +73.5% | |
| EBIT margin | 97.0% |
P&L walk
Revenue rose to ₹890.88 lakh, +62.3% YoY, and reported profit before tax reached ₹864.39 lakh, +64.3% YoY; the bottom line was additionally supported by a ₹23.75 lakh deferred-tax credit, while EPS increased only to ₹2.81 from ₹1.62.
Key positives
- Revenue from operations reached ₹890.88 lakh, up 62.3% YoY after ₹41.93 lakh in Q1FY27, extending the sharp growth inflection.
- Total expenses increased only 11.3% YoY to ₹26.43 lakh versus 62.3% revenue growth, supporting an implied operating margin of 97.0% versus 95.7% YoY.
- The investment portfolio increased to ₹88616.25 lakh from ₹75257.83 lakh at 31-Mar-26, a 17.7% increase.
Key concerns
- EPS rose only 73.5% YoY to ₹2.81 while reported PAT rose 4683.1% to ₹898.14 lakh; the discrepancy requires reconciliation because paid-up equity share capital remained ₹320.00 lakh.
- Operating cash flow remained negative at ₹49.83 lakh in H1FY27 despite reported profit before tax of ₹884.72 lakh for the half year.
- The filing provides no volume, realisation, or investment-portfolio performance detail to explain the 62.3% YoY revenue increase.
Research and educational content only. Not investment advice.