Indosolar Q2 FY27 Results (NSE: WAAREEINDO)
Signal: Revenue declined
The read
The key inflection is a sharp reversal from Q1FY27’s tolling-led economics: Q2 revenue recovered 127.6% QoQ, but goods-heavy sales drove gross margin down to 19.70% from 74.07% QoQ and EBITDA margin to 10.43%, leaving PAT at ₹501.85 lakh, down 89.2% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹155.59 Cr | -23.2% | +127.6% |
| EBIT | ₹6.77 Cr | -89.0% | |
| Net profit | ₹5.02 Cr | -89.2% | |
| EPS | ₹1.2 | -89.2% | |
| EBIT margin | 10.43% |
P&L walk
Revenue recovered to ₹15,558.63 lakh, up 127.6% QoQ but down 23.2% YoY, while gross margin compressed to 19.70% from 41.81% YoY and EBITDA margin fell to 10.43% from 74.07% QoQ; PAT declined 89.2% YoY to ₹501.85 lakh despite lower finance costs and higher other income.
Key positives
- Revenue from operations recovered 127.6% QoQ to ₹15,558.63 lakh, led by goods sales of ₹15,277.09 lakh versus ₹1,397.42 lakh in Q1FY27.
- Operating cash flow was ₹7,956.70 lakh in H1FY27, up 11.6% YoY, supported by a ₹19,?89.00 lakh reduction in trade receivables to ₹1,625.60 lakh.
Key concerns
- Gross margin compressed 2111bps YoY to 19.70% as cost of materials consumed rose to 147.64% of total income from 55.66%, with the filing not disclosing the cause.
- EBITDA margin fell 2449bps YoY to 10.43% and PAT declined 89.2% YoY to ₹501.85 lakh despite revenue recovering 127.6% QoQ.
- The service-led Q1 mix reversed: sale of services fell 91.0% YoY to ₹281.54 lakh while material-intensive sale of goods remained 10.8% below last year.
- Inventories increased to ₹22,197.26 lakh from ₹2,108.26 lakh at March 31, 2026, while PPE declined and depreciation rose.
Research and educational content only. Not investment advice.