Tracxn Technolo. Q2 FY27 Results (NSE: TRACXN)
Signal: Loss narrowed
The read
The key inflection is not a revenue recovery: Q2 revenue was only ₹2,130.13 lakh, up 0.26% YoY, while employee costs rose 22.50% and other expenses rose 41.08%, pushing pre-tax loss to ₹464.63 lakh. Reported PAT loss improved to ₹412.62 lakh mainly because of a ₹52.01 lakh deferred-tax credit, so the earnings recovery remains low quality until revenue growth catches up with the cost base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹21.3 Cr | +0.26% | +1.06% |
| Net profit | ₹-4.13 Cr | +25.82% | |
| EPS | ₹-0.39 | +25.00% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue was ₹2,130.13 lakh, up 0.26% YoY and 1.06% QoQ, but employee costs rose 22.50% YoY and other expenses rose 41.08%, driving a ₹464.63 lakh pre-tax loss; the ₹52.01 lakh deferred-tax credit reduced the reported PAT loss to ₹412.62 lakh.
Key positives
- Revenue increased 0.26% YoY to ₹2,130.13 lakh and 1.06% QoQ, avoiding another sequential decline.
- PAT loss narrowed to ₹412.62 lakh from ₹556.26 lakh in Q2FY26, while EPS improved to ₹-0.39 from ₹-0.52.
- The company held ₹8,473.39 lakh of investments and ₹104.49 lakh of cash at September 30, 2026, with no borrowings disclosed.
Key concerns
- Employee benefits expense rose 22.50% YoY to ₹2,332.93 lakh against revenue growth of only 0.26%, keeping the operating cost base structurally misaligned with growth.
- Other expenses increased 41.08% YoY to ₹391.90 lakh, further widening the pre-tax loss to ₹464.63 lakh.
- H1FY27 operating cash flow was negative at ₹596.15 lakh versus positive operating cash flow of ₹102.40 lakh in H1FY26.
- Q2 PAT improvement was helped by a ₹52.01 lakh deferred-tax credit, while the underlying pre-tax loss remained ₹464.63 lakh.
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