RattanIndia Ent Q2 FY27 Results (NSE: RTNINDIA)
Signal: Loss narrowed
The read
The apparent PAT recovery is low quality: consolidated loss narrowed to 240.29 million from 3965.57 million because the 4575.03 million prior-year fair-value loss disappeared, while core retail e-commerce profit collapsed 85.7% YoY to 42.58 million and operating cash flow stayed negative at 1557.97 million.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,061.67 Cr | -2.9% | +10.2% |
| Net profit | ₹-24.03 Cr | +93.9% | |
| EPS | ₹-0.18 | +93.7% | |
| EBIT margin | -0.04% |
P&L walk
Revenue declined 2.9% YoY to 20616.65 million; the operating result was approximately breakeven at -8.69 million after a 20.8% gross margin, while PAT loss narrowed to 240.29 million mainly because the 4575.03 million prior-year fair-value loss disappeared and 76.78 million of associate profit was added.
Segments
Retail e-commerce remains the group’s main revenue base at 20042.53 million but its result fell 85.7% YoY to 42.58 million; EV remained loss-making at -86.59 million, while the investment segment contributed 76.78 million and was the largest positive result contributor.
Key positives
- Consolidated loss narrowed to 240.29 million from 3965.57 million YoY as the prior-year 4575.03 million fair-value loss did not recur.
- Investment segment contributed 76.78 million of profit versus a 4575.03 million loss in the year-ago quarter, supported by the change in accounting treatment after RattanIndia Power became an associate.
- EV revenue grew 11.9% YoY to 473.40 million, although the segment remained loss-making at -86.59 million.
Key concerns
- Retail e-commerce revenue declined 3.4% YoY to 20042.53 million while segment result fell 85.7% to 42.58 million, showing severe margin pressure in the core business.
- Operating cash flow was negative at 1557.97 million in H1FY27, while inventory increased to 14980.48 million from 10028.63 million and borrowings rose to 12096.27 million.
- Finance costs rose 7.3% YoY to 207.38 million even as revenue declined 2.9% YoY.
- Standalone loss remained 193.01 million on 53.43 million of revenue, underscoring that earnings reside in subsidiaries and investments rather than the parent.
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