Marathon Nextgen Q2 FY27 Results (NSE: MARATHON)
Signal: Growth decelerated
The read
The Q1FY27 revenue rebound did not sustain sequentially: consolidated revenue fell 34.7% QoQ to ₹12,895.26 lakh and PAT fell 13.8% to ₹4,518.72 lakh, while YoY PAT declined 32.1% despite revenue growth because property-development costs rose 29.1% and other income fell 58.8%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹128.95 Cr | +10.4% | -34.7% |
| Net profit | ₹45.19 Cr | -32.1% | |
| EPS | ₹6.7 | -31.6% | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue increased to ₹12,895.26 lakh, +10.4% YoY but -34.7% QoQ, while profit before tax fell 23.1% YoY to ₹5,972.31 lakh and net profit fell 32.1% to ₹4,518.72 lakh; the decline reflects weaker other income and higher property-development costs despite lower finance costs.
Segments
The group-level result was dragged by subsidiaries: eleven subsidiaries contributed ₹4,989.91 lakh of quarterly revenue but only ₹90.32 lakh of net profit, while the joint venture contributed ₹352.85 lakh; standalone PAT of ₹4,778.78 lakh therefore exceeded consolidated PAT of ₹4,518.72 lakh.
Key positives
- Consolidated revenue was ₹12,895.26 lakh, up 10.4% YoY, and H1 revenue reached ₹32,645.49 lakh, up 26.7% YoY.
- Finance costs fell 65.1% YoY to ₹72.32 lakh, reducing balance-sheet pressure on reported earnings.
- The joint venture contribution rose 25.9% YoY to ₹352.86 lakh, providing a positive earnings contribution despite the consolidated PAT decline.
- The subsidiary group contributed ₹4,989.91 lakh of quarterly revenue, indicating broader project-level activity beyond the standalone parent.
Key concerns
- Sequential momentum reversed sharply: revenue fell 34.7% QoQ to ₹12,895.26 lakh after Q1FY27's rebound, while PAT fell 13.8% QoQ to ₹4,518.72 lakh.
- Consolidated PAT fell 32.1% YoY despite 10.4% revenue growth; property-development expenses increased 29.1% YoY to ₹9,912.52 lakh.
- Other income declined 58.8% YoY to ₹1,574.25 lakh, removing a material support to reported profitability.
- Trade receivables rose 56.7% from March to ₹8,973.62 lakh and the group moved from net cash of ₹3,532.11 lakh to net debt of ₹6,175.85 lakh.
- Subsidiaries generated ₹4,989.91 lakh of quarterly revenue but only ₹90.32 lakh of net profit, leaving consolidated profitability below standalone PAT.
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