Softtech Enginee Q2 FY27 Results (NSE: SOFTTECH)
Signal: Growth decelerated
The read
The key inflection is not revenue but earnings quality: consolidated revenue grew 17.6% YoY while standalone PAT rose 120.7% to 362.92 lakh, yet group PAT fell 35.7% to 21.40 lakh as subsidiaries and non-controlling interests absorbed the parent-level improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹31.53 Cr | +17.6% | -5.3% |
| Net profit | ₹0.21 Cr | -35.7% | |
| EPS | ₹0.08 | -38.5% |
P&L walk
Consolidated revenue grew 17.6% YoY but declined 5.3% QoQ; derived EBITDA margin fell to 25.3% from 26.0% YoY, and PAT declined 35.7% to 21.40 lakh because subsidiary-level earnings dilution overwhelmed operating profit.
Segments
The company reports a single information-technology and software-services segment; the material divergence is between standalone PAT of 362.92 lakh and consolidated PAT of 21.40 lakh, indicating subsidiaries dragged group earnings.
Key positives
- Standalone revenue rose 27.2% YoY to 3,270.27 lakh and standalone PAT rose 120.7% to 362.92 lakh, showing strong parent-level operating momentum.
- Standalone employee cost increased only 0.3% YoY to 634.28 lakh while revenue grew 27.2%, reducing employee-cost intensity to 19.4%.
- Consolidated H1FY27 operating cash flow rose to 1,685.97 lakh from 717.37 lakh, despite reported H1 consolidated PAT of 137.26 lakh.
- PPE rose to 424.09 lakh and intangible assets under development to 4,266.06 lakh, indicating continued investment in the technology asset base.
Key concerns
- Consolidated PAT fell 35.7% YoY to 21.40 lakh despite 17.6% revenue growth, showing weak earnings conversion at group level.
- Standalone PAT of 362.92 lakh converted into only 21.40 lakh of consolidated PAT; owner-attributable profit was 10.98 lakh and non-controlling interest received 10.41 lakh.
- Consolidated revenue declined 5.3% QoQ to 3,153.44 lakh, while EBITDA margin narrowed by 70bps YoY to a derived 25.3%.
- Net debt shifted from 216.99 lakh net cash at March 31, 2026 to 516.26 lakh net debt at September 30, 2026, alongside a 733.25 lakh increase in net debt.
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