Xtranet Techno. H1FY27 Results (NSE: XTRANET)
Signal: Margin expansion
The read
H1FY27 marks a material acceleration from Q1FY27's 10.5% YoY revenue growth: consolidated H1 revenue rose 41.6% to ₹16,014.83 lakh and EBITDA margin reached 20.49% versus 13.76% a year earlier, but the investment case is tempered by negative operating cash flow of ₹3,657.14 lakh and sharply higher receivables.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹160.15 Cr | 41.6% | N/A |
| EBIT | ₹28.17 Cr | 108.1% | |
| Net profit | ₹19.75 Cr | 99.6% | |
| EBIT margin | 17.6% |
P&L walk
Consolidated revenue increased 41.6% YoY to ₹16,014.83 lakh and EBITDA margin expanded to 20.49% from 13.76%, while PAT rose 99.6% to ₹1,975.28 lakh; the margin improvement coincided with lower purchase-cost intensity, but operating cash flow was negative ₹3,657.14 lakh.
Segments
The consolidated group generated ₹16,014.83 lakh revenue versus standalone ₹14,374.45 lakh, but subsidiaries reported a ₹97.72 lakh loss attributable to non-controlling interests, limiting the benefit of the wider group contribution.
Key positives
- Consolidated revenue rose 41.6% YoY to ₹16,014.83 lakh, accelerating from Q1FY27's 10.5% YoY growth.
- Gross margin expanded 349bps to 43.99% as purchase-cost intensity declined 200bps to 56.05% of revenue; the filing does not identify whether this reflects mix, pricing or input costs.
- EBITDA margin expanded 673bps to 20.49%, while employee costs rose only 9.9% YoY versus 41.6% revenue growth.
- Consolidated PP&E of ₹5,924.90 lakh and CWIP of ₹2,859.09 lakh both increased year to date, and depreciation rose 129.4% to ₹463.18 lakh, indicating assets are being brought into the earnings base.
Key concerns
- Operating cash flow was negative ₹3,657.14 lakh against ₹1,975.28 lakh consolidated PAT, indicating substantial working-capital absorption.
- Trade receivables increased to ₹13,881.46 lakh from ₹11,443.66 lakh while revenue grew 41.6%, requiring monitoring of collections and cash conversion.
- Finance costs increased 73.8% YoY to ₹350.98 lakh despite consolidated cash of ₹6,717.21 lakh and net cash of ₹487.85 lakh after borrowings.
- Subsidiaries contributed to group revenue but non-controlling interests recorded a ₹97.72 lakh loss, leaving consolidated PAT at ₹1,975.28 lakh versus ₹2,073.00 lakh attributable to owners.
Research and educational content only. Not investment advice.