Shemaroo Entert. Q2 FY27 Results (NSE: SHEMAROO)
Signal: Loss narrowed
The read
The operating turnaround remains visible but has paused sequentially: derived EBITDA margin improved to -1.65% from -38.19% YoY, yet slipped 27bps from Q1FY27 while revenue was still down 1.5% YoY and finance costs rose 14.7% YoY. The sharp PAT recovery was also supported by a ₹366.87 lakh tax credit, so positive bottom-line profitability is not yet established.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹141.25 Cr | -1.5% | +7.3% |
| Net profit | ₹-7.5 Cr | loss narrowed 83.4% | |
| EPS | ₹-2.59 | loss per share narrowed 84.4% | |
| EBIT margin | -1.65% |
P&L walk
Revenue of ₹14,124.85 lakh fell 1.5% YoY but rose 7.3% QoQ; derived EBITDA margin improved sharply to -1.65% from -38.19% YoY, while finance costs rose 14.7% YoY and net loss remained ₹749.96 lakh.
Segments
No separate reportable segments are disclosed; the ₹2,? consolidated-versus-standalone gap is material, with consolidated net loss of ₹749.96 lakh versus standalone net loss of ₹814.92 lakh, implying subsidiaries reduced the group's loss by ₹64.96 lakh.
Key positives
- Consolidated revenue recovered 7.3% QoQ to ₹14,124.85 lakh after the prior quarter's ₹13,168.41 lakh, although it remained 1.5% below last year.
- Derived EBITDA loss narrowed to ₹233.19 lakh from ₹5,476.49 lakh YoY, with EBITDA margin improving 3654bps to -1.65%.
- Consolidated net loss narrowed 83.4% YoY to ₹749.96 lakh, and H1 operating cash flow was positive at ₹1,981.27 lakh.
- Employee benefits expense declined 5.6% YoY to ₹3,203.94 lakh, helping the operating-loss recovery.
Key concerns
- Revenue remained 1.5% below YoY and derived EBITDA margin deteriorated 27bps sequentially, indicating the recovery is not yet consistent.
- Finance costs rose 14.7% YoY to ₹820.75 lakh despite broadly flat net debt, keeping the group loss-making.
- The ₹366.87 lakh consolidated tax credit materially reduced the reported loss; operating profitability remains negative before this benefit.
- Standalone net loss of ₹814.92 lakh exceeded consolidated net loss of ₹749.96 lakh, showing that the parent remains weaker than the group.
Research and educational content only. Not investment advice.