Wealth First Por Q2 FY27 Results (NSE: WEALTH)
Signal: Earnings declined
The read
The sequential revenue recovery to ₹1,528.04 lakh, +6.7% QoQ, did not restore earnings momentum: consolidated EBITDA margin fell to 59.1% from 97.3% QoQ and 74.6% YoY, driving PAT down 46.7% YoY to ₹589.83 lakh; the key inflection is cost intensity rather than demand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹15.28 Cr | -25.8% | +6.7% |
| EBIT | ₹8.76 Cr | -42.6% | |
| Net profit | ₹5.9 Cr | -46.7% | |
| EPS | ₹5.54 | -46.7% | |
| EBIT margin | 59.1% |
P&L walk
Consolidated revenue from operations was ₹1,528.04 lakh, -25.8% YoY and +6.7% QoQ, but EBITDA margin fell to 59.1% from 74.6% YoY as employee, other and depreciation expenses grew faster than revenue; PAT declined to ₹589.83 lakh, -46.7% YoY.
Segments
There is no reportable segment split, but the consolidated group materially underperformed the parent: Q2 PAT was ₹589.83 lakh versus standalone PAT of ₹755.06 lakh, while consolidated employee and other expenses were ₹819.05 lakh versus ₹574.69 lakh standalone.
Key positives
- Consolidated revenue from operations recovered to ₹1,528.04 lakh, +6.7% QoQ, after ₹1,432.36 lakh in Q1FY27.
- Operating cash flow improved to ₹2,269.23 lakh in H1FY27 from ₹1,036.52 lakh YoY, exceeding half-year PAT of ₹1,631.93 lakh.
- Finance cost was a net credit of ₹0.27 lakh in Q2FY27 versus ₹0.43 lakh expense YoY, so leverage and financing costs were not the earnings drag.
- EPS tracked PAT at -46.7% YoY with no dilution; the basic weighted-average share count remained 1,06,55,000.
Key concerns
- Consolidated EBITDA margin fell to 59.1%, down 1,555bps YoY and 3,822bps QoQ, as derived EBITDA declined 46.9% YoY against a 25.8% revenue decline.
- Employee benefits expense rose to ₹524.79 lakh, +24.1% YoY, despite revenue declining 25.8% YoY, lifting employee cost to 34.3% of revenue from 20.6%.
- Other expenses rose to ₹294.26 lakh, +149.5% YoY, lifting the ratio to 19.3% of revenue from 5.7%.
- Consolidated PAT of ₹589.83 lakh was 21.9% below standalone PAT of ₹755.06 lakh, showing that group costs materially diluted the parent result.
- Half-year consolidated revenue from operations fell to ₹2,960.40 lakh, -34.8% YoY, and half-year PAT fell to ₹1,631.93 lakh, -39.6%.
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