SPARC Q2 FY27 Results (NSE: SPARC)
Signal: Loss narrowed
The read
The apparent recovery remains uneven: Q2FY27 revenue of ₹3,003 lakh was up 282.1% YoY but down 24.8% QoQ, gross margin contracted 1080bps YoY to 33.2%, and the ₹2,439 lakh loss was supported by ₹2,362 lakh of other income rather than recurring operating profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹30.03 Cr | +282.1% | -24.8% |
| EBIT | ₹-24.19 Cr | +64.6% | |
| Net profit | ₹-24.39 Cr | +67.9% | |
| EPS | ₹-0.75 | +67.9% | |
| EBIT margin | -73.2% |
P&L walk
Revenue was ₹3,003 lakh, +282.1% YoY but -24.8% QoQ; gross margin compressed to 33.2% from 44.2% YoY, EBITDA remained negative at an estimated -73.2% margin, and the ₹2,439 lakh loss was partly offset by ₹2,362 lakh of other income.
Key positives
- Revenue from contracts with customers rose 282.1% YoY to ₹3,003 lakh, although it declined 24.8% QoQ from ₹3,992 lakh.
- Finance costs fell 98.4% YoY to ₹12 lakh as borrowings declined to ₹0 lakh at 30 September 2026 from ₹55,614 lakh at 31 March 2026.
- Consolidated PAT loss narrowed 67.9% YoY to ₹2,439 lakh and EPS loss narrowed by the same 67.9% to ₹0.75.
- H1 operating cash flow was ₹1,68,497 lakh versus an outflow of ₹11,587 lakh in H1FY26, primarily due to a ₹1,80,396 lakh reduction in other assets.
Key concerns
- Revenue fell 24.8% QoQ to ₹3,003 lakh after ₹3,992 lakh in Q1FY27, indicating the rebound has not yet established sequential momentum.
- Gross margin compressed 1080bps YoY to 33.2%, while raw material cost increased to 33.1% of revenue from 77.6% in the year-ago quarter; the filing does not disclose the margin driver.
- Core operating expenses excluding materials, finance cost and depreciation were ₹6,569 lakh, more than twice quarterly revenue, leaving estimated EBITDA negative at approximately ₹2,199 lakh.
- Other income of ₹2,362 lakh was nearly equal to revenue of ₹3,003 lakh and materially supported the quarter despite the ₹2,419 lakh estimated EBIT loss.
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