Sasken Technol. Q2 FY27 Results (NSE: SASKEN)
Signal: Margin expansion
The read
The trajectory remains a margin-recovery story: consolidated EBIT margin expanded to 8.9% from 2.3% YoY, following five prior quarters of expansion, but sequential revenue declined 5.4% because product solutions revenue fell 42.0% QoQ and half-year operating cash flow remained negative at ₹22.96 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹320.95 Cr | +25.6% | -5.4% |
| EBIT | ₹28.49 Cr | +394.4% | |
| Net profit | ₹25.59 Cr | +143.8% | |
| EPS | ₹16.14 | +150.6% | |
| EBIT margin | 8.9% |
P&L walk
Revenue grew 25.6% YoY but declined 5.4% QoQ as product solutions fell 42.0% QoQ; EBIT margin improved to 8.9% from 2.3% YoY, while PAT rose 143.8% to ₹2,559.44 lakh despite higher depreciation and finance costs.
Segments
Software services drove the group with revenue of ₹25,158.13 lakh, up 34.0% YoY, and segment result of ₹8,100.27 lakh, up 53.8%; product solutions revenue rose only 2.4% YoY and its result fell 31.4% QoQ to ₹485.57 lakh despite turning profitable from a ₹51.67 lakh loss YoY.
Key positives
- Software services revenue reached ₹25,158.13 lakh, up 34.0% YoY, and its segment result rose 53.8% to ₹8,100.27 lakh.
- Consolidated EBIT margin expanded to 8.9% from 2.3% YoY, a 662bps improvement and the sixth consecutive quarter of margin expansion in the recent series.
- Product solutions returned to profitability at ₹485.57 lakh versus a ₹51.67 lakh loss YoY.
- Standalone operating cash flow was ₹4,707.43 lakh for H1FY27 versus ₹34.81 lakh in H1FY26.
Key concerns
- Consolidated revenue declined 5.4% QoQ to ₹32,095.13 lakh, driven by a 42.0% QoQ fall in product solutions revenue.
- Half-year consolidated operating cash flow was negative ₹22.96 lakh despite PAT of ₹4,911.59 lakh, with inventories increasing to ₹9,448.16 lakh and trade receivables to ₹20,415.81 lakh.
- Finance costs rose 129.1% YoY to ₹232.34 lakh as borrowings reached ₹8,076.22 lakh.
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