Shalby Q2 FY27 Results (NSE: SHALBY)
Signal: Margin pressure
The read
The key inflection is the widening standalone-versus-consolidated gap: standalone PAT rose 19.0% YoY to ₹235.04 million, but subsidiary losses of ₹143.46 million held consolidated PAT to ₹78.86 million; consolidated EBITDA margin also contracted 107bps YoY to 14.8% after the prior Q2FY26 margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹313.17 Cr | 9.7% | -5.4% |
| Net profit | ₹7.89 Cr | 8.4% | |
| EBIT margin | 14.8% |
P&L walk
Consolidated revenue increased 9.7% YoY to ₹3,131.73 million, but EBITDA margin contracted 107bps to 14.8% as employee costs fell 4.2% while purchase of stock-in-trade rose 37.7%; subsidiary losses of ₹143.46 million materially reduced group PAT to ₹78.86 million.
Segments
The consolidated result is dragged by subsidiaries: the auditor reported subsidiary net losses of ₹143.46 million for the quarter, leaving consolidated PAT at ₹78.86 million versus standalone PAT of ₹235.04 million.
Key positives
- Standalone revenue rose 9.7% YoY to ₹2,453.19 million and standalone PAT rose 19.0% to ₹235.04 million.
- Standalone finance costs declined 25.6% YoY to ₹31.87 million, supporting PAT growth despite a 125bps YoY EBITDA-margin contraction.
- Standalone basic EPS rose 19.0% YoY to ₹2.19 and tracked PAT growth.
Key concerns
- Consolidated EBITDA margin declined 107bps YoY to 14.8% even as revenue grew 9.7%, with EBITDA growth of 0.8% lagging revenue growth.
- Subsidiary net losses of ₹143.46 million reduced consolidated PAT to ₹78.86 million versus standalone PAT of ₹235.04 million.
- Purchase of stock-in-trade increased 37.7% YoY to ₹429.95 million, materially faster than consolidated revenue growth.
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