Shree Rama News. H1FY27 Results (NSE: RAMANEWS)
Signal: Loss widened
The read
The revenue inflection to ₹1,777.70 lakh, up 11.1% YoY, has not translated into earnings: gross margin contracted 1,493bps to 34.9%, finance costs remained ₹1,862.01 lakh, and the PAT loss widened to ₹2,132.40 lakh. The dominant thesis issue is solvency, with current liabilities exceeding current assets by ₹16,047.59 lakh and the auditor identifying material uncertainty over going concern.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17.78 Cr | +11.1% | N/A |
| Net profit | ₹-21.32 Cr | -4.1% | |
| EPS | ₹-1.44 | -3.6% |
P&L walk
Standalone H1 revenue increased 11.1% YoY to ₹1,777.70 lakh, but gross margin compressed to 34.9% from 49.8% as raw-material intensity rose to 65.2% from 48.6%; finance costs of ₹1,862.01 lakh continued to overwhelm operating earnings, leaving a ₹2,132.40 lakh loss.
Segments
There is no reportable operating-segment split because the Paper Division is discontinued and the water-bottle division is the only continuing operating segment; the continuing business reported a ₹1,844.86 lakh H1 loss while discontinued operations added ₹287.54 lakh of loss.
Key positives
- Revenue from operations rose 11.1% YoY to ₹1,777.70 lakh, reversing the prior-year H1 decline.
- Employee and other expenses increased 7.2% YoY to ₹723.10 lakh, slower than revenue growth of 11.1%.
- Discontinued-operations loss narrowed 34.9% YoY to ₹287.54 lakh from ₹441.55 lakh.
Key concerns
- Gross margin compressed 1,493bps YoY to 34.9% as raw-material intensity rose to 65.2% of revenue from 48.6%; the filing does not disclose a mitigation or pass-through response.
- PAT loss widened 4.1% YoY to ₹2,132.40 lakh despite 11.1% revenue growth, showing that the revenue recovery is not yet economically accretive.
- Finance costs of ₹1,862.01 lakh were broadly unchanged YoY and remain larger than the continuing-operations loss before finance-cost effects.
- Borrowings stood at ₹38,676.62 lakh and net debt was approximately ₹38,617.75 lakh, up approximately ₹1,127.27 lakh from 31 March 2026.
Research and educational content only. Not investment advice.