Vakrangee Q2 FY27 Results (NSE: VAKRANGEE)
Signal: Revenue declined
The read
The key inflection is gross-margin expansion to 35.7% from 33.7%, but the trajectory remains weak because consolidated revenue fell 10.7% YoY and H1 PAT fell 21.5%; the parent’s ₹385.77 lakh PAT materially exceeded group PAT as subsidiaries dragged results and other income rose 60.5%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹61.68 Cr | -10.7% | +10.3% |
| Net profit | ₹2.73 Cr | -9.9% | |
| EPS | ₹0.03 | 0% | |
| EBIT margin | 11.4% |
P&L walk
Consolidated revenue declined 10.7% YoY to ₹6,168.31 lakh, but gross margin expanded to 35.7% from 33.7% as raw material cost fell to 12.0% of revenue; higher employee costs, depreciation and subsidiary losses kept PAT down 9.9% to ₹272.82 lakh.
Segments
No segment results table was provided, but the consolidated group includes an unaudited subsidiary contribution with ₹1,430.52 lakh revenue and a ₹133.17 lakh quarterly net loss, helping explain why consolidated PAT of ₹272.82 lakh was below standalone PAT of ₹385.77 lakh.
Key positives
- Consolidated gross margin expanded 202bps YoY to 35.7% as raw material cost declined to 12.0% of revenue from 14.9%.
- Standalone PAT rose 70.7% YoY to ₹385.77 lakh despite a 2.6% revenue decline, supported by other income rising 203.7% to ₹206.66 lakh.
- Consolidated revenue recovered 10.3% sequentially to ₹6,168.31 lakh, although it remained 10.7% below the year-ago quarter.
Key concerns
- Consolidated H1 revenue declined 14.7% YoY to ₹11,760.62 lakh and H1 PAT declined 21.5% to ₹498.44 lakh, indicating the quarterly margin improvement has not yet translated into growth.
- Employee cost rose 3.4% YoY to ₹989.58 lakh while consolidated revenue fell 10.7%, lifting employee cost intensity to 16.0% of revenue.
- Standalone PAT of ₹385.77 lakh exceeded consolidated PAT of ₹272.82 lakh, with non-controlling interests recording a ₹30.10 lakh loss in the quarter.
- Finance costs rose 43.1% YoY to ₹49.64 lakh and depreciation rose 3.9% to ₹462.68 lakh despite a declining consolidated PPE and CWIP base.
- Other income rose 60.5% YoY to ₹240.59 lakh and represented a substantial component of the ₹433.54 lakh consolidated profit before tax and exceptional item.
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