Hind.Composites Q2 FY27 Results (NSE: HINDCOMPOS)
Signal: Growth reaccelerated
The read
The quarter is an accounting-driven earnings spike rather than a clean operating inflection: continuing revenue rose 141.4% YoY to ₹3,420 lakh and pre-exceptional PBT rose to ₹541 lakh, but ₹24,257 lakh PAT was dominated by the ₹27,677 lakh friction-business slump-sale gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹34.2 Cr | +141.4% | +70.6% |
| Net profit | ₹242.57 Cr | +4494.1% | |
| EPS | ₹164.24 | +4488.3% |
P&L walk
Continuing revenue increased to ₹3,420 lakh, +141.4% YoY and +70.6% QoQ, while profit before exceptional items rose to ₹541 lakh from ₹23 lakh; reported PAT of ₹24,257 lakh was dominated by the ₹27,677 lakh slump-sale gain.
Segments
Investment was the larger profit driver, with revenue of ₹1,186 lakh, +30.8% YoY, and segment result of ₹781 lakh, +74.7%; Trading in Commodity grew faster to ₹2,234 lakh, +338.0%, but contributed only ₹58 lakh of segment result.
Key positives
- Continuing revenue reached ₹3,420 lakh, +141.4% YoY and +70.6% QoQ, led by Investment revenue of ₹1,186 lakh and Commodity Trading revenue of ₹2,234 lakh.
- Continuing-operations PBT before the exceptional item rose to ₹541 lakh from ₹23 lakh a year ago, while total expenses of ₹2,905 lakh grew slower than revenue YoY.
- The ₹370 crore friction-business slump sale was completed effective 20 August 2026, crystallizing a reported exceptional gain of ₹27,677 lakh.
Key concerns
- Reported PAT of ₹24,257 lakh is not representative of recurring earnings because ₹27,677 lakh came from the exceptional slump-sale gain.
- Discontinued operations PAT declined to ₹202 lakh from ₹470 lakh a year ago and ₹675 lakh sequentially.
- The filing does not disclose an operating-margin measure, and the large movement in calculated gross margin is affected by purchase and inventory-change accounting; the underlying driver is not disclosed.
Research and educational content only. Not investment advice.