SBC Exports Q2 FY27 Results (NSE: SBC)
Signal: Growth reaccelerated
The read
The trajectory remains growth-led but less clean: consolidated revenue accelerated to ₹16432.73 lakh, +94.1% YoY, and segment result rose 49.7%, yet operating margin fell 3.31pp YoY to 11.16% as raw material intensity rose to 73.9% of revenue and finance cost increased 65.6%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹164.33 Cr | +94.1% | +35.7% |
| EBIT | ₹18.33 Cr | +49.7% | |
| Net profit | ₹11.38 Cr | +37.0% | |
| EPS | ₹0.24 | +41.2% | |
| EBIT margin | 11.16% |
P&L walk
Consolidated revenue rose to ₹16432.73 lakh, +94.1% YoY and +35.7% QoQ, led by garments; segment operating result rose 49.7% YoY to ₹1833.25 lakh, but PAT growth of 37.0% to ₹1137.54 lakh lagged operating growth as finance cost increased 65.6% to ₹398.25 lakh.
Segments
Garments Sales drove the quarter with revenue of ₹9936.35 lakh, +146.1% YoY, and segment result of ₹1434.88 lakh, +53.3%; Tour & Travel added ₹2641.91 lakh of revenue but only ₹73.20 lakh of result, while IT Support contributed ₹325.17 lakh of result.
Key positives
- Garments revenue reached ₹9936.35 lakh, +146.1% YoY and +40.9% QoQ, making it the principal growth engine.
- Consolidated segment result rose 49.7% YoY to ₹1833.25 lakh despite a 3.31pp YoY operating-margin contraction.
- EPS increased 41.2% YoY to ₹0.24, broadly tracking the 37.0% PAT increase.
Key concerns
- Raw material cost increased to 73.9% of consolidated revenue from 59.9% YoY, compressing gross margin by approximately 14.0pp.
- Finance cost rose 65.6% YoY to ₹398.25 lakh, faster than segment result growth of 49.7%.
- Operating cash flow was negative at ₹5573.30 lakh in H1FY27 despite PAT of ₹2097.99 lakh, with receivables and inventories rising to ₹18851.05 lakh and ₹11739.03 lakh respectively.
Research and educational content only. Not investment advice.