Shringar House H1FY27 Results (NSE: SHRINGARMS)
Signal: Growth decelerated
The read
The trajectory is revenue-led but margin-constrained: H1FY27 revenue grew 58.6% to ₹13,671.52 million, while EBITDA grew 43.7% and EBITDA margin fell 81bps to 7.8%; with CFO still negative at ₹775.07 million and net debt up ₹937.66 million since March, conversion of growth into cash and margin recovery are the key inflection points.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,367.15 Cr | 58.6% | N/A |
| EBIT | ₹104.19 Cr | 43.0% | |
| Net profit | ₹73.47 Cr | 43.1% | |
| EPS | ₹7.62 | 52.1% | |
| EBIT margin | 7.8% |
P&L walk
Standalone H1FY27 revenue grew 58.6% to ₹13,671.52 million, but gross margin compressed 171bps to 9.1% and EBITDA margin fell 81bps to 7.8%; PAT still rose 43.1% to ₹734.70 million, supported by operating profit rather than a material other-income contribution.
Key positives
- Revenue from operations rose 58.6% YoY to ₹13,671.52 million, sustaining the company's high-growth trajectory.
- PAT increased 43.1% to ₹734.70 million and basic EPS increased 52.1% to ₹7.62.
- PPE rose from ₹124.20 million to ₹243.02 million while depreciation increased 77.3% to ₹26.58 million, a clean depreciation-to-asset-base relationship.
- Finance costs increased only 1.5% YoY to ₹46.16 million despite the larger borrowing base.
Key concerns
- Gross margin compressed 171bps YoY to 9.1%; the filing does not disclose whether the pressure came from pricing, mix or input costs.
- EBITDA growth of 43.7% lagged revenue growth of 58.6%, reducing EBITDA margin to 7.8% from 8.6%.
- Operating cash flow remained negative at ₹775.07 million, while trade receivables reached ₹3,575.54 million and net debt increased to ₹1,458.23 million.
- Revenue grew 58.6% but PAT grew only 43.1%, showing incomplete flow-through from top-line growth to earnings.
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