Sinclairs Hotels Q2 FY27 Results (NSE: SINCLAIR)
Signal: Loss narrowed
The read
The trajectory is weaker than the headline H1 growth suggests: Q2 revenue fell 2.05% YoY to ₹880.04 lakh and operating EBITDA was only ₹3.62 lakh, while H1 PAT of ₹663.78 lakh was supported by ₹511.11 lakh of other income and investment-related gains; the key inflection is a return to quarterly loss after Q1's ₹790.99 lakh profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8.8 Cr | -2.05% | -56.32% |
| Net profit | ₹-1.27 Cr | 37.52% loss narrowed | |
| EPS | ₹-0.25 | 37.50% loss per share narrowed | |
| EBIT margin | 0.41% |
P&L walk
Q2 revenue declined 2.05% YoY to ₹880.04 lakh and the company moved to a ₹127.21 lakh loss from a ₹203.59 lakh loss, but the operating P&L remained weak as employee costs rose 1.37% YoY and other expenses fell only 8.36%; the quarter's gross-margin expansion was not enough to prevent a loss.
Key positives
- Gross margin expanded 207bps YoY to 83.12% as material cost declined to 16.88% of revenue from 18.95%; however, the filing does not disclose the driver.
- Finance costs declined 40.33% YoY to ₹48.24 lakh, consistent with lease liabilities falling to ₹2,216.60 lakh from ₹3,438.78 lakh at 31 March 2026.
- H1 operating cash flow remained positive at ₹723.68 lakh despite H1 PAT of ₹663.78 lakh, while H1 revenue rose 17.31% YoY to ₹2,894.88 lakh.
Key concerns
- Q2 revenue declined 2.05% YoY to ₹880.04 lakh and the derived operating EBITDA margin was only 0.41%, indicating that the gross-margin improvement did not translate into operating profit.
- Q2 PAT was a ₹127.21 lakh loss versus ₹790.99 lakh profit in Q1, showing significant sequential volatility despite H1 revenue growth of 17.31% YoY.
- H1 PAT of ₹663.78 lakh includes ₹511.11 lakh of other income, including fair-value gains on investments of ₹305.11 lakh and income from an Alternative Investment Fund of ₹92.57 lakh.
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