Aakaar H1FY27 profit rebounds as receivables reach Rs 54.21 crore

Aakaar reported profit after tax of Rs 3.54 crore in H1FY27, reversing a Rs 78 lakh loss in H1FY26, as revenue from operations increased to Rs 43.72 crore from Rs 25.32 crore. The balance sheet also recorded Rs 54.21 crore of trade receivables, Rs 1.06 crore of cash and Rs 18.89 crore of short-term borrowings.

How did Aakaar return to profit in H1FY27?

Aakaar returned to profit as revenue and operating earnings increased in H1FY27. Revenue from operations rose by Rs 18.40 crore year on year to Rs 43.72 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, moved to Rs 5.43 crore from a Rs 23 lakh loss in H1FY26. Profit before tax was Rs 4.82 crore, compared with a Rs 1.02 crore loss a year earlier.

Profit after tax, or PAT, was Rs 3.54 crore in H1FY27, compared with a Rs 78 lakh loss in H1FY26. PAT margin moved to 8.10% from negative 3.10%, and return on net worth was 6.10%, compared with negative 1.67%. Net worth stood at Rs 58.09 crore in H1FY27, against Rs 47.10 crore in H1FY26.

Aakaar's H1FY27 revenue was Rs 2.08 crore above the Rs 41.64 crore reported for H2FY26. The presentation describes H1FY27 as business operating in line with its historical trend shift and continued momentum from H2FY26; it does not state a FY27 revenue target.

What changed in Aakaar's H1FY27 margins and costs?

Aakaar's EBITDA margin improved to 12.42% in H1FY27 from negative 0.91% in H1FY26, although gross margin declined to 51.40% from 54.78%. Cost of goods sold, or COGS, increased to Rs 21.25 crore from Rs 11.44 crore, while gross profit rose to Rs 22.47 crore from Rs 13.88 crore.

Employee benefits expense increased by Rs 81 lakh to Rs 8.07 crore and other expenses rose by Rs 2.12 crore to Rs 8.97 crore. Aakaar said it increased marketing investment in H1FY27 to build consumer awareness, strengthen its business-to-business channel and create demand before upcoming e-commerce sales. Finance costs declined to Rs 80 lakh from Rs 1.04 crore.

The first-half gross-margin result differed from the preceding full-year trend. Gross margin rose from 57.60% in FY25 to 59.34% in FY26, while EBITDA margin rose from 15.97% to 16.39%. The presentation attributes H2FY26 margin headwinds to higher manufacturing and logistics costs and rupee depreciation, while separately identifying higher marketing investment in H1FY27.

How much working capital is tied up in Aakaar receivables?

Aakaar had Rs 54.21 crore of trade receivables in H1FY27, its largest disclosed current-asset category. Receivables were Rs 16.99 crore higher than the Rs 37.22 crore reported at FY26 and exceeded inventory of Rs 25.94 crore by Rs 28.27 crore. Other current assets were Rs 3.89 crore.

Debtor days also increased across the disclosed periods, reaching 219 days in September 2026 from 206 days in March 2026, 188 days in September 2025 and 160 days in March 2025. The 59-day increase between March 2025 and September 2026 coincided with trade receivables rising from Rs 28 crore at FY25 to Rs 54.21 crore at H1FY27.

Inventory increased to Rs 25.94 crore in H1FY27 from Rs 19.70 crore at FY26. Aakaar said its H2FY26 procurement approach linked purchases to demand visibility and confirmed orders, and that inventory remaining at year-end was cleared in April. The presentation does not quantify the portion of H1FY27 inventory resulting from that clearance or later purchases.

What does Aakaar's H1FY27 balance sheet show?

Aakaar reported total assets and liabilities of Rs 88.50 crore in H1FY27, compared with Rs 79.40 crore at FY26. Share capital was Rs 14.17 crore and reserves and surplus were Rs 43.92 crore, together equalling shareholders' funds of Rs 58.09 crore. Long-term provisions stood at Rs 1.15 crore and other long-term liabilities at Rs 3 lakh.

Short-term borrowings were Rs 18.89 crore in H1FY27, compared with Rs 18.50 crore at FY26 and Rs 22.70 crore at FY25. Trade payables increased to Rs 6.09 crore from Rs 1.90 crore at FY26, while other current liabilities rose to Rs 2.87 crore from Rs 2.40 crore. Short-term provisions were Rs 1.37 crore.

Cash and bank balances fell to Rs 1.06 crore in H1FY27 from Rs 16.20 crore at FY26. Current assets included Rs 54.21 crore of receivables, Rs 25.94 crore of inventory and Rs 3.89 crore of other current assets. The presentation gives no cash-flow statement, receivables ageing schedule or breakdown of the movement in cash during the period.

What is Aakaar doing to reduce debtor days?

Aakaar's H2FY27 plan is to shift payment responsibility to distributors and reduce debtor days to below 130 days. That target is more than 89 days below the 219 days reported for September 2026. The action plan also calls for incremental business and greater productivity by brand and doctor.

Aakaar said it completed migration to Novacare, established carrying and forwarding agent, or CFA, operations, and appointed 40 distributors nationwide in H1FY27. Management expects these initiatives to support improved collections, lower debtor days and better last-mile delivery over the next 12 to 18 months. The presentation does not give a date for achieving the below-130-day target.

Aakaar's stated route to market includes more than 5,000 dermatologists and clinics, over 100 medical-representative executives, more than 1,000 pharmacies and over 40 stockists. The company says doctor-dispensed products can improve recommendation-led trust, feedback, up-selling and cross-selling, while the H2FY27 plan places payment responsibility with distributors.

Conclusion

Aakaar's H1FY27 performance shows an earnings reversal, with revenue reaching Rs 43.72 crore and PAT reaching Rs 3.54 crore after a Rs 78 lakh loss in H1FY26. However, the reported Rs 54.21 crore of receivables, 219 debtor days, Rs 1.06 crore of cash and Rs 18.89 crore of short-term borrowings place working capital alongside the profit recovery.

The next disclosed measure is execution of the H2FY27 plan to shift payment responsibility to distributors and reduce debtor days below 130 days. Management expects the Novacare migration, CFA operations and 40 distributor appointments to produce collection and delivery benefits over the next 12 to 18 months.