Rel. Indl. Infra Q2 FY27 Results (NSE: RIIL)
Signal: Revenue declined
The read
The key inflection is not an operating recovery: revenue fell 31.4% YoY to 835 lakh for a second consecutive sharply declining quarter, while PAT fell only 8.5% to 280 lakh because other income of 571 lakh and 19 lakh of associate profit masked weak core earnings; negative H1 operating cash flow of 1539 lakh reinforces the low quality of reported profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8.35 Cr | -31.4% | -3.4% |
| Net profit | ₹2.8 Cr | -8.5% | |
| EPS | ₹1.85 | -8.9% |
P&L walk
Revenue from operations fell 31.4% YoY to 835 lakh and PBT fell 22.2% to 273 lakh; consolidated PAT declined a milder 8.5% to 280 lakh because other income of 571 lakh and associate profit of 19 lakh cushioned the operating decline.
Segments
There are no reportable operating segments; the consolidated result was 19 lakh above standalone PAT because of the associate's profit contribution, down from 48 lakh a year earlier.
Key positives
- Other expenses fell 53.1% YoY to 362 lakh, partially offsetting the 31.4% revenue decline.
- Consolidated PAT of 280 lakh was supported by 571 lakh of other income and 19 lakh of associate profit, while EPS of ₹1.85 broadly tracked PAT without dilution evidence.
- The balance sheet had 29285 lakh of current investments and 26551 lakh of non-current investments, against 44 lakh of total liabilities excluding equity.
Key concerns
- Revenue from operations declined 31.4% YoY to 835 lakh, following the 30.7% YoY decline in Q1FY27.
- Employee cost of 260 lakh was down only 1.1% YoY and operating expense rose 4.8% to 286 lakh despite the revenue contraction, indicating severe operating cost intensity.
- Rent increased 59.7% YoY to 190 lakh and was sharply above 17 lakh in the previous quarter.
- Standalone PAT of 261 lakh and consolidated PAT of 280 lakh were both heavily supported by other income of 571 lakh rather than operating revenue.
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