Swiss Military Q2 FY27 Results (NSE: SWISSMLTRY)
Signal: Revenue declined
The read
The key inflection is sequential margin recovery: consolidated operating margin improved to about 4.8% from 2.4% in Q1FY27, but revenue fell about 10% YoY and PAT fell 19.1%, extending the slowdown after Q3FY26's 26.1% revenue growth; negative H1 operating cash flow of ₹176.19 lakh weakens earnings quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹60.88 Cr | -10.0% | N/A |
| EBIT | ₹2.61 Cr | -17.2% | |
| Net profit | ₹2.07 Cr | -19.1% | |
| EPS | ₹0.09 | -10.0% | |
| EBIT margin | 4.8% |
P&L walk
Consolidated revenue was ₹6,088.30 lakh, down about 10% YoY; operating profit before exceptional items and tax fell to ₹260.89 lakh from ₹316.36 lakh, while PAT declined to ₹207.49 lakh from ₹256.60 lakh despite QoQ recovery from ₹136.46 lakh.
Segments
The company reports a single operating segment, but subsidiaries lifted group earnings: consolidated PAT of ₹207.49 lakh was about 24.9% above standalone PAT of ₹166.09 lakh.
Key positives
- Consolidated operating margin recovered to about 4.8% from 2.4% in the preceding quarter, a sequential improvement of roughly 250bps.
- Consolidated PAT recovered to ₹207.49 lakh from ₹136.46 lakh QoQ, a 52.1% increase.
- Finance costs fell 10.3% YoY to ₹30.37 lakh, while the group remained in a net-cash position of ₹1,254.75 lakh.
Key concerns
- Revenue declined about 10% YoY to ₹6,088.30 lakh, reversing the 26.1% YoY growth seen in Q3FY26 and indicating materially weaker momentum.
- PAT fell 19.1% YoY to ₹207.49 lakh despite the margin recovery, while standalone PAT was only ₹166.09 lakh.
- H1 operating cash flow was negative ₹176.19 lakh against H1 consolidated profit before tax of ₹461.88 lakh, indicating weak cash conversion.
- Net cash reduced by ₹641.83 lakh from 31 March 2026 as cash declined to ₹2,788.21 lakh.
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