OnMobile Global Q2 FY27 Results (NSE: ONMOBILE)
Signal: Slipped to loss
The read
The operating recovery seen in Q1FY27 has not held: Q2FY27 revenue rose 3.5% QoQ to 1,271.02 million, but EBITDA margin remained near 1% at 1.15% versus 6.58% a year ago and PAT was a 105.35 million loss; this is the third consecutive quarter of YoY margin contraction in the recent series.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹127.1 Cr | -0.8% | +3.5% |
| EBIT | ₹-8.93 Cr | N/A | |
| Net profit | ₹-10.53 Cr | -277.2% | +63.6% |
| EPS | ₹-0.99 | -276.8% | |
| EBIT margin | 1.15% |
P&L walk
Revenue was broadly stable at 1,271.02 million, but EBITDA fell 82.7% YoY to 14.58 million as employee, marketing and content costs remained elevated; PAT was a 105.35 million loss despite the prior quarter's 289.23 million loss being worsened by a 141.44 million exceptional charge.
Segments
The group is geographically concentrated in Europe at 579.46 million of quarterly revenue, up 3.6% YoY, while India dragged with revenue down 35.2% YoY to 127.13 million; the filing reports a single operating segment.
Key positives
- Revenue recovered 3.5% QoQ to 1,271.02 million, with Europe revenue up 6.7% QoQ to 579.46 million.
- Consolidated operating cash flow was positive at 92.20 million in H1FY27 despite an H1 PAT loss of 394.58 million.
- The prior quarter's 141.44 million exceptional restructuring charge did not recur, helping the QoQ PAT loss narrow from 289.23 million to 105.35 million.
Key concerns
- EBITDA declined 82.7% YoY to 14.58 million and EBITDA margin contracted 543bps to 1.15%.
- India revenue fell 35.2% YoY to 127.13 million, while employee costs rose 5.5% YoY to 293.41 million and marketing costs rose 2.4% to 234.62 million.
- Finance costs rose 134.3% YoY to 40.89 million as borrowings increased.
- Consolidated H1FY27 revenue declined 1.4% YoY to 2,498.57 million and H1 PAT swung to a 394.58 million loss from a 215.35 million profit.
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