Shanti Educat. Q2 FY27 Results (NSE: SEIL)
Signal: Revenue declined
The read
The trajectory deteriorated sharply from Q1FY27: consolidated revenue fell 46.3% QoQ to ₹875.47 lakh and operating margin swung to -10.5% from an estimated 30.0%, while PAT fell 65.7% QoQ to ₹96.89 lakh; ₹260.98 lakh of other income prevented an operating loss from reaching the bottom line.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8.75 Cr | -23.3% | -46.3% |
| Net profit | ₹0.97 Cr | -63.0% | |
| EPS | ₹0.06 | -62.5% | |
| EBIT margin | -10.5% |
P&L walk
Revenue fell to ₹875.47 lakh, -23.3% YoY and -46.3% QoQ, while operating margin swung to -10.5% from 16.6% YoY as employee and other operating costs absorbed revenue; PAT of ₹96.89 lakh was supported by ₹260.98 lakh of other income.
Segments
The consolidated group materially outperformed the parent on revenue, with ₹875.47 lakh versus standalone ₹367.58 lakh in Q2; subsidiaries contributed the majority of group revenue, but consolidated operating margin was still -10.5% and PAT remained dependent on ₹260.98 lakh of other income.
Key positives
- Consolidated H1FY27 operating cash flow was positive at ₹250.54 lakh, versus negative ₹18.68 lakh for the prior full year period cited in the cash-flow statement.
- Consolidated asset investment continued, with PPE rising to ₹1,784.37 lakh from ₹1,708.71 lakh and CWIP to ₹8.75 lakh from ₹5.00 lakh.
- Consolidated revenue of ₹875.47 lakh remained materially above standalone revenue of ₹367.58 lakh, indicating subsidiaries are the main revenue base.
Key concerns
- Consolidated revenue declined 23.3% YoY and 46.3% QoQ to ₹875.47 lakh, reversing the Q1FY27 level of ₹1,629.86 lakh.
- Operating margin fell to -10.5% from 16.6% YoY and 30.0% QoQ, with employee cost at 39.2% of revenue and other expenses at ₹413.71 lakh.
- PAT of ₹96.89 lakh was not supported by operations: other income of ₹260.98 lakh exceeded reported PAT and cushioned the operating loss.
- Net debt increased to ₹826.99 lakh from ₹420.27 lakh at March 31, 2026 as borrowings rose to ₹902.17 lakh and cash declined to ₹75.18 lakh.
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