BharatRohan H1 revenue rises 28.6% as gross margin widens

BharatRohan Airborne Innovations Limited reported revenue from operations of Rs 42.34 crore for H1 FY27, up 28.6% year on year, while gross margin rose 480 basis points to 29.7%. Gross profit increased 52.9% to Rs 12.57 crore in the half year ended 30 September 2026, outpacing sales growth despite the company-cited below-normal monsoon.

How did BharatRohan's H1 FY27 revenue and margins change?

BharatRohan increased revenue from operations to Rs 42.34 crore in H1 FY27 from Rs 32.92 crore in H1 FY26, a 28.6% rise. Gross profit grew 52.9% to Rs 12.57 crore from Rs 8.22 crore, lifting gross margin to 29.7% from 24.9%. BharatRohan attributed the margin change to a greater revenue share from traceable, laboratory-verified produce that supports premium pricing.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 44.5% to Rs 7.47 crore from Rs 5.17 crore, and the EBITDA margin increased to 17.7% from 15.7%. Employee costs reached Rs 2.57 crore as BharatRohan added field, technology, branding and international teams before the rabi season and planned US entry. The release's graphic states a 470-basis-point gross-margin increase, but its detailed table and accompanying text state 480 basis points.

Which BharatRohan segments drove revenue growth?

BharatRohan's agri-output segment remained the largest contributor, generating Rs 26.96 crore, or 63.7% of H1 FY27 revenue, compared with Rs 22.64 crore a year earlier. Its 19.1% growth was below the 28.6% increase in total revenue, so the segment's share of the sales mix was affected by faster expansion in other businesses.

Crop Monitoring Services was the fastest-growing reported segment, with revenue rising 53.8% to Rs 14.17 crore from Rs 9.21 crore. The segment accounted for 33.5% of revenue and added Rs 4.96 crore year on year, compared with a Rs 4.32 crore increase in agri-output. Agri-inputs grew 13.9% to Rs 1.22 crore from Rs 1.07 crore and represented 2.9% of revenue.

BharatRohan said the H1 FY27 performance came despite a below-normal 2026 monsoon caused by El Niño, which it said reduced kharif volumes nationwide. Its CropAssure platform was providing drone-based crop-monitoring services across 2,66,537 acres for 60,196 farmers, including 28,212 paying farmers. The company said batches of produce undergo testing at National Accreditation Board for Testing and Calibration Laboratories-accredited laboratories for pesticide residues, microbiology and heavy metals.

Why did BharatRohan's profit after tax decline?

BharatRohan's profit after tax declined 10.0% to Rs 4.15 crore in H1 FY27 from Rs 4.61 crore in H1 FY26, although profit before tax increased 30.4% to Rs 6.17 crore. BharatRohan attributed the after-tax decline entirely to tax normalisation, saying its effective tax rate returned to about 33% from about 3% in the prior-year period, when current tax was nil.

Earnings per share were Rs 2.08 for H1 FY27 and were not annualised. BharatRohan said the figure reflected the enlarged share base for the full half-year after its September 2025 initial public offering. This comparison shows that revenue, gross profit, EBITDA and profit before tax increased even as the higher tax charge reduced reported profit after tax.

Net worth was Rs 91.60 crore at 30 September 2026, compared with Rs 87.45 crore at 31 March 2026. Total borrowings stood at Rs 4.45 crore and debt to equity was approximately 0.05, according to BharatRohan. Operating cash flow before working-capital changes was positive at Rs 7.56 crore during H1 FY27.

What changed in BharatRohan's cash flow and investment spending?

BharatRohan improved net operating cash flow by Rs 11.20 crore to negative Rs 2.74 crore in H1 FY27 from negative Rs 13.96 crore in H1 FY26. The company cited slower receivable growth and inventory management for the movement, although working-capital changes meant net operating cash flow remained negative despite the Rs 7.56 crore pre-working-capital operating cash flow.

Capital expenditure was Rs 6.54 crore, deployed mainly in equipment and proprietary in-house technology, including an indigenous snapshot hyperspectral camera. BharatRohan said it had built a working prototype of the camera, which is intended to reduce dependence on imported sensors and create additional technology revenue avenues. The release did not disclose revenue from the prototype.

BharatRohan is extending crop-monitoring services from seasonal field crops into tea, pomegranate and grapes, which it says can provide work through more stages of the year. A CropAssure order from a South Indian tea plantation company was due to start in November 2026 and is placed season by season. BharatRohan expects the order to recur across the customer's estates, but did not disclose its value.

What milestones could affect BharatRohan after H1 FY27?

BharatRohan said its Delaware step-down subsidiary, BharatRohan Inc., plans to launch a traceable spice range in the US in Q1 2027. The initial range is planned to comprise 8 to 12 single-origin staples and blends, sold through Amazon and a direct-to-consumer website. A separate US fundraise of approximately USD 5 million is under way to support marketing and operations.

Its Indian processing unit expects Food Safety System Certification 22000 in December 2026. BharatRohan said the certification could enable direct supply to supermarkets and importers, but it did not report any contracted retailer sales. Separately, the company completed commercial proof-of-concept work for solar-asset monitoring with three companies in Madhya Pradesh, Rajasthan and Gujarat and said it was converting those engagements into long-term contracts for the October-December post-monsoon period.

BharatRohan's board has approved an investment for a 15% stake in BharatRohan Defence Private Limited, a proposed company. The proposed venture intends to raise up to Rs 100 crore through a separate private placement for product development, a manufacturing facility, certification and business development. BharatRohan said its investment would come from internal accruals rather than initial public offering proceeds.

Conclusion

BharatRohan's H1 FY27 results combined a 28.6% increase in revenue with faster growth in gross profit, up 52.9%, and EBITDA, up 44.5%. Crop Monitoring Services grew 53.8%, faster than agri-output's 19.1%, while the 10.0% fall in profit after tax followed the tax-rate movement identified by BharatRohan rather than a decline in profit before tax.

The next disclosed milestones are the November 2026 tea-estate work start, the expected December 2026 Food Safety System Certification 22000 outcome and the planned Q1 2027 US spice launch. BharatRohan also plans to convert solar-monitoring proof-of-concept work into contracts and is pursuing an approximately USD 5 million US fundraise, while no financial contribution from those initiatives has yet been disclosed.