Trejhara Solutio Q2 FY27 Results (NSE: TREJHARA)
Signal: Margin expansion
The read
The trajectory improved at the consolidated operating level: revenue rose 136.1% YoY and EBITDA margin expanded 347bps to 10.1%, while other income fell 93.1%; however, standalone PAT fell 93.7% to 21.83 lakh and non-controlling interest of 105.94 lakh caused EPS to decline 3.3% despite higher group PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹77.96 Cr | +136.1% | +15.3% |
| EBIT | ₹6.88 Cr | +36.6% | |
| Net profit | ₹4.61 Cr | +29.0% | |
| EPS | ₹1.47 | -3.3% | |
| EBIT margin | 10.1% |
P&L walk
Revenue reached 7,796.18 lakh, +136.1% YoY and +15.3% QoQ, with EBITDA margin improving to 10.1%; PAT rose 29.0% to 460.90 lakh despite other income falling 93.1%, but finance costs increased 501.5%.
Segments
The group reports logistics services, including ancillary logistics software, as its single reportable segment; the material divergence is between consolidated PAT of 460.90 lakh and standalone PAT of 21.83 lakh, indicating subsidiaries are driving the earnings outcome.
Key positives
- Consolidated revenue reached 7,796.18 lakh, up 136.1% YoY and 15.3% QoQ, extending the strong top-line trajectory.
- EBITDA margin improved to approximately 10.1% from approximately 6.6% a year ago and 9.8% sequentially, as revenue growth exceeded the growth in operating and employee costs.
- PAT increased 29.0% YoY to 460.90 lakh even though other income fell 93.1% to 26.43 lakh, indicating the quarter's profit growth was not dependent on treasury or foreign-exchange income.
Key concerns
- Standalone PAT fell 93.7% YoY to 21.83 lakh despite 11.6% revenue growth, so consolidated earnings quality depends heavily on subsidiaries.
- Finance costs rose 501.5% YoY to 114.76 lakh, while consolidated borrowings stood at 2,198.96 lakh and cash was 571.83 lakh.
- H1 operating cash flow declined to 113.70 lakh from 235.57 lakh despite higher profit, while trade receivables increased to 4,322.35 lakh from 3,359.29 lakh.
- EPS fell 3.3% YoY to ₹1.47 despite 29.0% PAT growth because 105.94 lakh of profit was attributed to non-controlling interest.
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