HONAUT's Q2 FY27 numbers came in soft, with revenue of Rs. 1,223.90 Cr (+6.48% YoY) and PAT growth of +11.88% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,223.90 Cr (+6.48% YoY) |
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| PAT (Q2) | Rs. 133.70 Cr (+11.88% YoY) |
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| EBITDA margin | 12.66% (+121 bps YoY) |
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| EPS (Q2) | Rs. 151.17 (+11.87% YoY) |
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| Market cap | Rs. 27,691.24 Cr |
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| CMP | Rs. 31,520.00 |
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Quarter Snapshot
Q2 revenue grew 6.48% YoY with EBITDA margin up 121 bps YoY to 12.66%, but PAT fell 11.28% QoQ as other expenses rose 26.58% QoQ. The quarter's red flag is cash quality: H1 CFO/PAT of 0.15x versus 0.99x a year ago, driven by inventory and other-asset builds, and H1 revenue growth of 4.11% remains well short of the company's own 2x-GDP target.
Key Investment Insights
Key Positives
- Revenue grew 6.48% YoY to Rs.1,223.9 Cr, re-accelerating from Q1's +1.80%
- PAT grew 11.88% YoY to Rs.133.7 Cr; EPS Rs.151.17 vs Rs.135.13
- EBITDA margin expanded 121 bps YoY to 12.66% (Q2FY26: 11.45%)
- PBT margin 14.77% vs 13.98% year-ago (+79 bps), tracking the 'maintaining profit margins' guidance
- Trade receivables fell 7.48% vs March (Rs.1,074.1 Cr vs Rs.1,160.9 Cr)
- Net worth rose 4.50% to Rs.4,663.3 Cr; company remains debt-free apart from lease liabilities; treasury at Rs.3,821.4 Cr
- Employee costs fell 2.41% QoQ to 18.56% of revenue (Q1: 19.33%)
Risk Factors
- CFO/PAT collapsed to 0.15x in H1 FY27 (Rs.42.5 Cr CFO vs Rs.284.4 Cr PAT) from 0.99x a year ago
- Inventories rose 22.09% and other current assets 25.13% vs March, with a Rs.47.8 Cr inventory build in H1 cash flow
- Other expenses rose 26.58% QoQ and 20.32% YoY to Rs.111.9 Cr (9.14% of revenue), driving PAT down 11.28% QoQ
- EBITDA margin compressed 166 bps QoQ to 12.66%
- H1 revenue growth of 4.11% is ~9.1 pp short of the ~13.2% pace implied by the company's 2x-GDP target; reaching ~13% FY27 growth requires H2 growth of roughly 20%+ YoY
- Employee cost growth of 12.70% YoY again outpaced revenue growth of 6.48%