Ksolves India Q2 FY27 Results (NSE: KSOLVES)
Signal: Revenue declined
The read
The key inflection is a break in the recent margin recovery: consolidated operating margin fell to 25.74% from 30.43% YoY and 30.30% in Q1FY27 as revenue declined 4.72% YoY and employee cost rose 9.08%; subsidiary profit cushioned consolidated PAT, but standalone PAT fell 29.21%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹37.8 Cr | -4.72% | -8.80% |
| Net profit | ₹7.25 Cr | -13.83% | |
| EPS | ₹3.05 | -14.08% | |
| EBIT margin | 25.74% |
P&L walk
Consolidated revenue declined to 3779.80 lakh, -4.72% YoY and -8.80% QoQ, while operating margin fell to 25.74% from 30.43% as employee costs rose 9.08% YoY; PAT declined 13.83% to 724.52 lakh and EPS fell 14.08% to 3.05.
Segments
The group outperformed the parent: consolidated PAT was 724.52 lakh versus standalone PAT of 591.90 lakh because subsidiaries contributed 132.63 lakh of quarterly profit; the filing reports only one business segment, Information Technology Services.
Key positives
- H1 consolidated operating cash flow increased to 2199.02 lakh from 1639.44 lakh, exceeding H1 PAT of 1645.19 lakh.
- Consolidated subsidiaries contributed 132.63 lakh of quarterly profit, lifting group PAT to 724.52 lakh versus standalone PAT of 591.90 lakh.
- The company declared a second interim dividend of ₹1 per share, while consolidated cash increased to 1762.46 lakh and borrowings fell to nil.
Key concerns
- Consolidated revenue declined 4.72% YoY to 3779.80 lakh and 8.80% QoQ, indicating sequential momentum loss.
- Operating margin contracted 469bps YoY to 25.74%, with employee cost rising 9.08% YoY to 2084.75 lakh and employee cost intensity reaching 55.16% of revenue.
- Standalone PAT fell 29.21% YoY to 591.90 lakh, showing that the group-level result is relying increasingly on subsidiary earnings to cushion parent-level weakness.
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