EAAA India Alternatives Ltd (EDELALTS) Q2 FY27 Results Analysis: PAT Jumps 27%, MTM Gains Drive Earnings
EAAA India Alternatives Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 279.88 Cr (+14.00% YoY) and PAT growth of +26.89% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 11, 2026 |
|---|---|
| Revenue (Q2) | Rs. 279.88 Cr (+14.00% YoY) |
| PAT (Q2) | Rs. 88.10 Cr (+26.89% YoY) |
| EPS (Q2) | Rs. 13.68 (+26.67% YoY) |
Quarter Snapshot
EDELALTS delivered Q2 consolidated PAT of Rs.88.10 cr (+26.89% YoY) on Total Revenue of Rs.279.88 cr (+14.00% YoY), with H1 fee revenue of Rs.527.02 cr (+27.42% YoY) tracking FPAUM growth of 27.53% to Rs.49,164 cr. The balance sheet strengthened materially (debt-equity 0.26 vs 0.50 YoY, interest service coverage 12.51x) alongside a Rs.7/share interim dividend and a November 2026 listing. Watch items are the H1 cost-to-income rise to 60.21%, cash conversion of 0.64x, and earnings that are materially mark-to-market-driven (Rs.276.55 cr of fair-value/VAR gains equal to 126.82% of H1 PBT); no prior management guidance exists to score a beat against.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Fee income "in line to modestly ahead on the fee base" | Fee revenue H1 +27.42% YoY, tracking FPAUM +27.53% | Played out |
| AUM/FPAUM bridge: net closes vs late-lifecycle run-off | FPAUM level delivered; strategy-level bridge absent from filing — open for the call | Partially |
| Performance fee/exit income "a tailwind for the quarter" | Other income +25.12% YoY but Q1-weighted (note 4); Rs.194.06 cr unrealised VAR in H1 PBT — timing skew to Q1 | Played out |
| Rising rates raise borrower stress; unsizeable from pre-call data | Impairment ~nil (Rs.(0.01) cr) — no visible stress | Not observable |
| Own-fund valuation bridge / write-downs | No write-down disclosed; investment lines grew | Partially |
| Interim dividend "if any" — capital-allocation signal | Rs.7/share declared | Played out |
| SEBI/related-party Q&A | Not addressed in the filing — remains open for the call | Not observable |
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Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| "H1FY27 PAT of Rs.169 Cr, up 35% YoY" | Rs.168.81 cr, +34.93% YoY | Confirmed |
| "Q2FY27 PAT at Rs.88 Cr, up 27% from Q2FY26" | Rs.88.10 cr, +26.89% YoY | Confirmed |
| "Q2FY27 Total Income grew by 14% YoY to Rs.280 Cr" | Rs.279.88 cr, +14.00% YoY | Confirmed |
| "FPAUM grew by 28% YoY to Rs.49,164 Cr" | +27.53% YoY computed | Confirmed |
| Other expenses fell QoQ on Q1 VAR-realisation amortisation (note 4) | Other expenses −32.46% QoQ | Confirmed |
| "IPO… was subscribed 4.17x" (press release) | No independent data in filing; note the pre-call expectations document carried 5.51x — the filing's 4.17x governs | Reported discrepancy noted |
Key Numbers, Quarter by Quarter
| Metric | Sep 30, 2025 | Sep 30, 2026 |
|---|---|---|
| FPAUM (Rs. cr) | 38,552 | 49,164 |
| FPAUM YoY % | — | +27.53 |
| RoE % (mgmt) | 26.65 | 29.40 |
Key Investment Insights
Key Positives
- Consolidated Q2 PAT of Rs.88.10 cr grew 26.89% YoY; H1 PAT of Rs.168.81 cr grew 34.93% YoY
- Fee revenue of Rs.527.02 cr in H1 grew 27.42% YoY, tracking FPAUM growth of 27.53% YoY to Rs.49,164 cr
- Q2 PAT margin of 31.48% vs 28.28% in Q2FY26; Q2 cost-to-income improved to 55.33% from 58.37% YoY
- Debt-equity halved to 0.26 from 0.50 YoY; interest service coverage rose to 12.51x from 6.92x; net worth up 13.30% vs March 2026 to Rs.1,218.55 cr
- Second interim dividend of Rs.7/share declared (implied outlay Rs.45.26 cr, 51.38% of Q2 PAT)
- Management & Advisory fees of Rs.333 cr in H1 (+24% YoY); 77% of AUM from repeat clients; 3-year FPAUM CAGR of 23%
- Finance costs fell 33.77% YoY to Rs.9.20 cr in Q2, consistent with debt reduction
Risk Factors
- H1 cost-to-income deteriorated to 60.21% from 56.67% in H1FY26 (~354 bps)
- H1 cash conversion at 0.64x (CFO Rs.108.51 cr vs PAT Rs.168.81 cr), down from 1.30x in H1FY26, driven by working-capital outflows and a Rs.58.93 cr tax payment
- H1 PBT includes Rs.276.55 cr of unrealised VAR plus fair-value gains (126.82% of H1 PBT), making earnings materially mark-to-market-driven
- Standalone Q2 PAT fell 19.84% YoY on Total Revenue down 24.23% YoY; subsidiaries were a Rs.39.72 cr drag on Q2 consolidated PAT
- Other income halved QoQ (−53.15% to Rs.28.39 cr) as the Q1 performance-fee realisation was Q1-weighted
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.