S C I Q2 FY27 Results (NSE: SCI)
Signal: Margin expansion
The read
The quarter marks a strong revenue reacceleration to 236,849 lakh, +65.2% YoY, led by tankers, but sequential margin cooled to 41.5% from 50.8% and earnings absorbed a 24,019 lakh ILT-3 provision; the operating trajectory is positive, though the provision highlights joint-venture credit risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,368.49 Cr | +65.2% | +21.3% |
| EBIT | ₹703.39 Cr | +183.5% | |
| Net profit | ₹465.8 Cr | N/A | |
| EPS | ₹13.87 | N/A | |
| EBIT margin | 41.5% |
P&L walk
Revenue increased to 236,849 lakh, +65.2% YoY and +21.3% QoQ, with tanker segment result up 311.8% YoY; EBITDA margin was 41.5%, but other expenses included a 24,019 lakh ILT-3 provision and PAT was 46,580 lakh.
Segments
Tankers were the clear driver: revenue rose to 158,215 lakh, +84.3% YoY, and segment result increased to 74,140 lakh, +311.8% YoY; Bulk Carriers dragged with a 214 lakh loss after a 4,318 lakh profit sequentially, while unallocable items recorded an 18,087 lakh loss.
Key positives
- Revenue reached 236,849 lakh, +65.2% YoY and +21.3% QoQ, reversing the weaker revenue trend seen in the prior-year quarter.
- Tanker revenue rose 84.3% YoY to 158,215 lakh and tanker result increased 311.8% YoY to 74,140 lakh, making tankers the principal earnings engine.
- Operating cash flow was positive at 131,547 lakh in H1FY27 against profit before tax of 132,856 lakh, supporting earnings quality.
Key concerns
- Bulk Carrier moved to a 214 lakh loss from a 4,318 lakh sequential profit, indicating uneven performance across the fleet.
- Sequential EBITDA margin declined to 41.5% from 50.8%, despite revenue growth of 21.3% QoQ.
- The company recognised a 24,019 lakh provision against the ILT-3 loan, including 1,136 lakh of interest receivable, because of geopolitical developments affecting ILT-3 operations.
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