Rhetan TMT Ltd Q2 FY27 Results (NSE: RHETAN)
Signal: Revenue declined
The read
The operating trajectory deteriorated sharply: revenue fell 23.7% YoY to ₹363.17 lakh, gross margin compressed 3,240bps to 1.1%, and operating margin fell to -26.8%; the apparent ₹291.92 lakh PAT is not operationally representative because ₹447.08 lakh of other income exceeded revenue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3.63 Cr | -23.7% | -10.6% |
| Net profit | ₹2.92 Cr | +1.6% | |
| EPS | ₹0.04 | 0.0% | |
| EBIT margin | -26.8% |
P&L walk
Revenue declined to ₹363.17 lakh, gross margin compressed to 1.1% as raw material costs reached 100.4% of revenue, and operating margin fell to -26.8%; PAT of ₹291.92 lakh was sustained by ₹447.08 lakh of other income.
Key positives
- Borrowings fell by ₹1,196.57 lakh to ₹2,976.33 lakh between 31 March and 30 September 2026, reducing net debt to ₹2,946.03 lakh.
- Finance cost declined 6.5% YoY to ₹35.22 lakh.
- The company reported ₹291.92 lakh of PAT and ₹0.04 EPS despite a negative approximately ₹97.34 lakh operating EBITDA.
Key concerns
- Revenue declined 23.7% YoY to ₹363.17 lakh and 10.6% sequentially, with no volume or realisation disclosure to support a recovery case.
- Gross margin compressed 3,240bps YoY to 1.1% as raw material costs reached 100.4% of revenue versus 82.1% a year earlier.
- Operating margin fell to -26.8% from approximately 23.0% a year earlier as employee and other operating expenses rose despite lower revenue.
- H1 operating cash flow was negative ₹8.00 lakh against H1 PAT of ₹607.75 lakh.
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