Sanstar Q2 FY27 Results (NSE: SANSTAR)
Signal: Operating turnaround
The read
The key inflection is sequential recovery: revenue rose 28.4% QoQ to ₹278.37 Cr and PAT reached ₹5.86 Cr, but YoY revenue still fell 4.3%, estimated EBITDA margin was only about 5.0% versus 8.9% in Q4FY26, and ₹5.68 Cr of other income makes the profit recovery less operationally clean.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹278.37 Cr | -4.3% | +28.4% |
| EBIT | ₹8.55 Cr | N/A | |
| Net profit | ₹5.86 Cr | +830.2% | |
| EPS | ₹0.25 | +733.3% | |
| EBIT margin | 5.0% |
P&L walk
Revenue was ₹278.37 Cr, down 4.3% YoY but up 28.4% QoQ; estimated EBITDA margin recovered to about 5.0% from a loss-making year-ago quarter, while PAT reached ₹5.86 Cr from ₹0.63 Cr, helped by the operating recovery and higher other income.
Segments
The company remains a single operating segment, so there is no disclosed segment-level driver; consolidated PAT was only ₹0.01 Cr below standalone PAT because the associate contributed a ₹0.01 Cr loss.
Key positives
- Revenue recovered 28.4% QoQ to ₹278.37 Cr from ₹216.78 Cr, reversing the weak Q1 base.
- PAT turned meaningfully positive at ₹5.86 Cr versus ₹0.63 Cr YoY and ₹0.21 Cr QoQ.
- The asset base is expanding, with PPE at ₹440.87 Cr versus ₹424.43 Cr and CWIP at ₹27.34 Cr versus ₹11.01 Cr at 31 March 2026.
- Borrowings declined to ₹30.83 Cr from ₹39.90 Cr at 31 March 2026, leaving the company with substantial liquidity.
Key concerns
- Revenue remained 4.3% below the year-ago quarter, so the recovery is not yet a return to YoY growth.
- Estimated EBITDA margin of about 5.0% remains below the 8.9% reported for Q4FY26, indicating incomplete margin normalisation.
- Other income of ₹5.68 Cr was material against consolidated PBT of about ₹7.95 Cr, making the PAT recovery partly non-operational.
- H1 operating cash flow was negative at ₹8.10 Cr despite H1 pre-tax profit of ₹20.53 Cr, driven in part by a ₹20.60 Cr inventory increase.
- EPS growth of 733.3% lagged PAT growth of 830.2% after the preferential equity issue, indicating dilution.
Research and educational content only. Not investment advice.