Shringar House Q2 FY27 Results (NSE: SHRINGARMS)
Signal: Growth decelerated
The read
The growth engine remains strong: Q2 revenue reached ₹818.7 crore, up 54.8% YoY, while EBITDA grew 68.7% and PAT 73.2%; the inflection is sequential normalization, with EBITDA margin falling 220bps from 8.9% in Q1 to 6.7% and H1 EBITDA margin at 7.6%, while operating cash outflow remains negative at ₹77.9 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹818.7 Cr | 54.8% | 49.3% |
| Net profit | ₹39.5 Cr | 73.2% | |
| EBIT margin | 6.7% |
P&L walk
Revenue accelerated 54.8% YoY to ₹818.7 crore and EBITDA grew faster at 68.7% to ₹55.0 crore, lifting EBITDA margin 50bps YoY to 6.7%; however, sequential margin compression of 220bps and gross margin decline of 210bps point to normalization after Q1's 8.9% EBITDA margin.
Key positives
- Revenue increased 54.8% YoY to ₹818.7 crore and 49.3% QoQ, extending the company's high-growth trajectory.
- EBITDA rose 68.7% YoY to ₹55.0 crore, outpacing revenue growth by 13.9 percentage points, while EBITDA margin expanded 50bps YoY to 6.7%.
- PAT grew 73.2% YoY to ₹39.5 crore and PAT margin improved 50bps YoY to 4.8%.
- H1 revenue reached ₹1,367.2 crore, up 58.7% YoY, supported by the company's pan-India corporate, wholesale and retail customer network.
- H1 operating cash outflow improved to ₹77.9 crore from ₹412.1 crore in H1 FY26, a ₹334.2 crore improvement.
Key concerns
- Gross margin declined 10bps YoY to 8.3% and 210bps QoQ, with no explanation of input-cost, pricing or product-mix drivers.
- EBITDA margin fell 220bps sequentially from 8.9% in Q1FY27 to 6.7%, while H1 EBITDA margin of 7.6% was 100bps below H1FY26.
- Operating cash flow remained negative at ₹77.9 crore in H1 FY27 despite ₹73.5 crore of PAT, leaving cash conversion as an important execution monitor.
- EPS was not disclosed in the press release, preventing a PAT-to-per-share earnings-quality check.
Research and educational content only. Not investment advice.