Shankara Building Q2 FY27 Results (NSE: SHANKARA)
Signal: Loss reversed
The read
The inflection is a consolidated earnings recovery: revenue rose to ₹367.46 Cr, +31.3% YoY, EBITDA margin improved to about 2.2% from a negative year-ago base, and PAT reached ₹4.53 Cr; however, ₹2.95 Cr of other income and the still-thin margin mean the trajectory requires operating-profit confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹367.46 Cr | +31.3% | +4.9% |
| EBIT | ₹5.6 Cr | N/A | |
| Net profit | ₹4.53 Cr | +187.8% | |
| EPS | ₹1.87 | +187.8% | |
| EBIT margin | 2.2% |
P&L walk
Consolidated revenue increased to ₹367.46 Cr, +31.3% YoY and +4.9% QoQ, while EBITDA margin improved to about 2.2% from an estimated negative base a year earlier; PAT of ₹4.53 Cr was also supported by ₹2.95 Cr of other income.
Segments
No segment table was disclosed, but the ₹4.53 Cr consolidated PAT versus ₹0.77 Cr standalone PAT shows that subsidiaries contributed approximately ₹3.76 Cr of the quarter's profit.
Key positives
- Consolidated revenue was ₹367.46 Cr, up 31.3% YoY and 4.9% QoQ, reversing the prior-year revenue base of ₹279.91 Cr.
- PAT recovered to ₹4.53 Cr from a ₹5.16 Cr YoY loss, while EPS improved to ₹1.87 from negative ₹2.13.
- H1 operating cash flow turned positive at ₹61.82 Cr versus negative ₹10.29 Cr a year ago, and net debt declined to ₹177.19 Cr from ₹184.41 Cr at March 2026.
- PP&E plus CWIP increased to ₹146.20 Cr from ₹114.25 Cr while depreciation rose 11.0% H1 YoY, a clean asset-base and depreciation relationship.
Key concerns
- EBITDA margin was only about 2.2% despite the PAT recovery, leaving limited cushion if revenue momentum slows.
- Other income of ₹2.95 Cr was more than half of consolidated PBT of ₹6.18 Cr, making the bottom-line rebound less purely operational.
- Standalone revenue fell 49.3% QoQ to ₹5.44 Cr and standalone PAT fell 45.0% QoQ to ₹0.77 Cr, highlighting the subsidiaries' importance to group earnings.
- The filing records ₹16.16 Cr of H1 standalone sales with corresponding purchases at cost under transitional arrangements, so these transactions did not contribute profit.
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