Urja Global Q2 FY27 Results (NSE: URJA)
Signal: Margin expansion
The read
The quarter is a margin-recovery-but-demand-contraction result: consolidated revenue fell 41.89% YoY to ₹2,005.50 lakh, while segment operating margin improved to 5.98% from the prior-year level; however, PAT fell 32.80% to ₹76.60 lakh and the auditor's concerns over ₹20.34 crore of receivables aged over 180 days, ₹46.35 crore of CWIP and unresolved tax and documentation matters dominate the trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹20.06 Cr | -41.89% | -41.05% |
| EBIT | ₹1.2 Cr | -19.55% | |
| Net profit | ₹0.77 Cr | -32.80% | |
| EPS | ₹0.01 | 0% | |
| EBIT margin | 5.98% |
P&L walk
Consolidated revenue fell to ₹2,005.50 lakh, -41.89% YoY and -41.05% QoQ, while segment operating result was ₹119.85 lakh and PAT was ₹76.60 lakh, -32.80% YoY; the margin improvement was not accompanied by growth and earnings quality remains constrained by receivables and audit qualifications.
Segments
Electric Vehicles drove 88.81% of consolidated quarterly revenue at ₹1,781.06 lakh but fell 42.71% YoY; Renewable Energy declined 13.61% to ₹138.21 lakh and Batteries declined 52.49% to ₹86.23 lakh, while the ₹102.09 lakh standalone PAT versus ₹76.60 lakh consolidated PAT shows subsidiaries dragged the group.
Key positives
- Segment operating result was ₹119.85 lakh on ₹2,005.50 lakh revenue, implying a 5.98% operating margin and a 165bps YoY improvement despite revenue contraction.
- Electric Vehicle remained the largest business at ₹1,781.06 lakh of revenue and ₹14,561.27 lakh of segment assets, providing the main platform for any recovery.
- Standalone PAT of ₹102.09 lakh exceeded consolidated PAT of ₹76.60 lakh, indicating the parent remains more profitable than the wider group.
Key concerns
- Consolidated revenue declined 41.89% YoY to ₹2,005.50 lakh, with all three segments reporting lower revenue than the year-ago quarter.
- PAT declined 32.80% YoY to ₹76.60 lakh despite the reported operating-margin improvement, showing weak conversion from operating performance to bottom line.
- Receivables were ₹30.76 crore, including ₹20.34 crore aged over 180 days; auditors recommended provisions or write-offs and noted that confirmations were unavailable.
- Standalone and consolidated earnings diverged: standalone PAT was ₹102.09 lakh versus consolidated PAT of ₹76.60 lakh, indicating subsidiaries reduced group profitability.
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