Q2 FY27 Net Profit Plunges 95% YoY to ₹1.35 Lakh Despite Revenue Up 5.8% to ₹5.29 Cr
Solitaire Machine Tools reported Q2 FY27 revenue from operations of ₹5.29 crore (₹529.29 lakh), up 5.8% YoY compared to ₹5.00 crore in Q2 FY26. However, net profit for the quarter dropped sharply by 95.4% YoY to ₹1.35 lakh from ₹29.19 lakh, impacted by higher cost of materials, depreciation, and other operating expenses. Profit before tax plummeted to ₹1.67 lakh versus ₹39.10 lakh in the same period last year. For H1 FY27, net cash from operating activities turned negative to -₹1.05 crore, driven by a ₹4.16 crore increase in inventories.
உச்சம் நம்பிக்கை
என்ன மாறியதுApproval and release of Q2 and H1 FY27 unaudited financial results and limited review report.
ஏன் இது முக்கியம்Operating profitability has compressed severely to near-breakeven levels despite revenue growth, putting pressure on already modest TTM earnings.
Q2 FY27 Revenue from Operations: ₹529.29 லட்சம்Q2 FY27 Net Profit: ₹1.35 லட்சம்Q2 FY26 Net Profit: ₹29.19 லட்சம்H1 FY27 Operating Cash Flow: -₹105.14 lakhQ2 FY27 EPS: ₹0.03
📅 குறுகிய காலம்Margin compression to virtually zero net profit could weigh on market sentiment over coming weeks.
📈 நீண்ட காலம்Limited, unless the company reverses working capital lock-up in inventories and recovers normalized operating margins above 15%.
⚠ அபாய எச்சரிக்கைகள்
- Severe margin compression (PBT of just ₹1.67 lakh on ₹5.32 cr total income)
- Negative operating cash flow of ₹1.05 cr in H1 due to working capital expansion
👀 கவனிக்க வேண்டியவை
Track margin recovery and inventory liquidation in subsequent quarters, particularly whether raw material costs stabilize to lift operating profitability.
