Desco’s H1 FY27 revenue rose 79% while profit grew 53%

Desco Infratech Limited reported H1 FY27 consolidated revenue from operations of Rs 75.0494 crore, up 78.52% from H1 FY26, while net profit rose 53.01% to Rs 9.443 crore for the half year ended 30 September 2026. Revenue growth exceeded profit growth as total expenses increased across material, employee, finance and other-cost lines.

How much did Desco’s revenue and profit increase in H1 FY27?

Desco’s consolidated revenue from operations increased by Rs 33.0098 crore year on year to Rs 75.0494 crore in H1 FY27, compared with Rs 42.0396 crore in H1 FY26. Total income, which includes other income, rose 77.9% to Rs 75.2746 crore from Rs 42.3257 crore. Other income declined to Rs 22.52 lakh from Rs 28.61 lakh, so the increase in total income principally reflected revenue from operations.

Profit after tax, or PAT, rose by Rs 3.2716 crore to Rs 9.443 crore from Rs 6.1714 crore. Profit before tax, or PBT, increased 54.52% to Rs 12.7474 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 61.77% to Rs 14.5417 crore. Desco reported an EBITDA margin of 19.38%, a PAT margin of 12.58%, and basic and diluted earnings per share, or EPS, of Rs 12.31 in H1 FY27.

Why did Desco’s profit grow more slowly than revenue?

Desco’s profit grew more slowly than revenue because total expenses rose to Rs 62.2747 crore in H1 FY27 from Rs 34.0762 crore in H1 FY26, an increase of Rs 28.1985 crore. Revenue from operations increased by Rs 33.0098 crore over the same period, while PAT increased by Rs 3.2716 crore. The reported 78.52% revenue growth was therefore 25.51 percentage points above the 53.01% PAT growth rate.

Other expenses were the largest expense line, increasing to Rs 44.0741 crore from Rs 23.1458 crore. Employee benefit expenses rose to Rs 7.4646 crore from Rs 3.8958 crore, while cost of material consumed increased to Rs 8.9418 crore from Rs 6.2952 crore. Finance costs rose to Rs 1.5927 crore from Rs 61.40 lakh, and depreciation and amortisation increased to Rs 20.16 lakh from Rs 12.54 lakh.

The consolidated statement recorded profit before exceptional items and tax of Rs 12.9999 crore for the six months ended 30 September 2026, compared with Rs 8.2495 crore a year earlier. A prior-period item of Rs 25.26 lakh reduced PBT to Rs 12.7474 crore. Current tax was Rs 3.2916 crore and deferred tax was Rs 1.28 lakh, compared with Rs 2.0309 crore and Rs 4.72 lakh, respectively, in H1 FY26.

How did Desco’s consolidated results compare with standalone results?

Desco’s consolidated and standalone revenue from operations were identical at Rs 75.0494 crore in H1 FY27 and Rs 42.0396 crore in H1 FY26. Both presentations reported 78.52% year-on-year revenue growth. Consolidation therefore did not alter reported revenue in either half-year period.

Profit measures were marginally lower on a consolidated basis. Consolidated EBITDA of Rs 14.5417 crore was Rs 5.91 lakh below standalone EBITDA of Rs 14.6008 crore, while consolidated PBT of Rs 12.7474 crore was Rs 5.92 lakh below the standalone figure of Rs 12.8066 crore. Consolidated PAT was Rs 5.93 lakh below standalone PAT of Rs 9.5023 crore, and consolidated EPS was Rs 12.31 compared with standalone EPS of Rs 12.38.

The consolidated balance sheet recorded minority interest of Rs 4.17 lakh at 30 September 2026, down from Rs 5.13 lakh at 31 March 2026. The consolidated presentation therefore included a minority-interest balance, while the differences between consolidated and standalone EBITDA, PBT and PAT were each below Rs 6 lakh in H1 FY27.

What changed in Desco’s balance sheet by September 2026?

Desco’s total consolidated assets increased to Rs 153.0828 crore at 30 September 2026 from Rs 105.2068 crore at 31 March 2026. Current assets rose to Rs 139.1031 crore from Rs 94.7492 crore, while non-current assets increased to Rs 13.9797 crore from Rs 10.4575 crore. The September 2026 balance-sheet figures were unaudited, while the March 2026 comparatives were audited.

Trade receivables increased to Rs 56.6582 crore from Rs 30.4216 crore, and other current assets rose to Rs 73.1661 crore from Rs 56.1056 crore. Cash and cash equivalents increased to Rs 11.3336 crore from Rs 79.38 lakh, while inventories declined to Rs 5.3713 crore from Rs 5.4524 crore. These movements coincided with the Rs 33.0098 crore increase in H1 FY27 revenue from operations.

Total equity and liabilities increased to Rs 153.0828 crore from Rs 105.2068 crore. Shareholders’ funds rose to Rs 80.2842 crore from Rs 70.8413 crore, while current liabilities increased to Rs 65.4661 crore from Rs 30.8093 crore. Short-term borrowings rose to Rs 30.1193 crore from Rs 12.1568 crore and long-term borrowings increased to Rs 7.0479 crore from Rs 3.3151 crore.

What is Desco’s stated operating focus after H1 FY27?

Desco said management remains focused on expanding the business, improving operational efficiency, and driving sustainable profitability and long-term shareholder value after H1 FY27. Management made that statement after reporting a 78.52% increase in revenue from operations to Rs 75.0494 crore and a 53.01% increase in consolidated PAT to Rs 9.443 crore.

Desco’s business model sets out six stages: business development, engineering and project planning, procurement and resource management, project execution, commissioning and handover, and operations and maintenance. Its disclosed areas are water infrastructure, clean energy and emerging businesses, and civil construction. The presentation does not give a quantified revenue target, order-book target or timetable for those activities.

Desco lists water pipeline installation, distribution networks and associated civil works under water infrastructure. Its clean-energy and emerging-business activities include compressed bio gas, bioenergy infrastructure, and liquefied natural gas, liquid-to-compressed natural gas and compressed natural gas infrastructure. The operating model also includes maintenance support and network operations and maintenance after commissioning and client handover.

Conclusion

Desco’s H1 FY27 results show that the Rs 33.0098 crore increase in revenue from operations translated into a Rs 3.2716 crore increase in consolidated PAT. Revenue rose 78.52% to Rs 75.0494 crore, while PAT rose 53.01% to Rs 9.443 crore, as other expenses, employee costs, material costs and finance costs also increased during the half year.

The next results will show whether management’s stated focus on business expansion and operational efficiency is reflected in revenue and profitability. Desco has not disclosed a quantified future revenue or earnings target, order-book target, or timetable for its water infrastructure, clean-energy and civil-construction activities.