Globe Enterprises Q2 PAT fell despite 33.83% revenue rise

Globe Enterprises (India) Limited reported consolidated Q2 FY27 revenue from operations of Rs 209.53 crore, up 33.83% year on year, but profit after tax fell to Rs 3.82 crore from Rs 4.46 crore as deferred tax changed from a Rs 100.70 lakh credit to a Rs 39.48 lakh expense.

Why did Globe Enterprises' Q2 FY27 PAT fall despite revenue growth?

Globe Enterprises' Q2 FY27 profit after tax, or PAT, fell because the tax outcome reversed even as profit before tax, or PBT, increased. Consolidated PBT rose 25.09% to Rs 5.20 crore in Q2 FY27 from Rs 4.16 crore in Q2 FY26, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 24.50% to Rs 11.76 crore from Rs 9.45 crore.

The tax movement was concentrated in deferred tax. Deferred tax was a Rs 100.70 lakh credit in Q2 FY26 but became a Rs 39.48 lakh expense in Q2 FY27. Current tax also rose to Rs 98.95 lakh from Rs 70.04 lakh. Therefore, the reported tax line changed from a net Rs 30.66 lakh credit to a Rs 138.43 lakh charge, a Rs 169.09 lakh year-on-year swing.

That tax change exceeded the increase in PBT over the two quarters. PAT consequently declined to Rs 3.82 crore in Q2 FY27 from Rs 4.46 crore in Q2 FY26, while diluted earnings per share, or EPS, decreased 20.00% to Rs 0.08 from Rs 0.10. The presentation does not provide a further explanation for the deferred-tax movement.

How did Globe Enterprises' Q2 FY27 operating performance compare with Q2 FY26?

Globe Enterprises recorded increases in revenue from operations, EBITDA and PBT in Q2 FY27, although revenue grew faster than EBITDA. Revenue from operations rose 33.83% to Rs 209.53 crore from Rs 156.56 crore. Total income, which includes other income, increased 32.62% to Rs 210.28 crore from Rs 158.56 crore.

Other income declined to Rs 75.19 lakh in Q2 FY27 from Rs 2.00 crore in Q2 FY26. This decline meant that total-income growth was below the 33.83% growth reported for revenue from operations. Management's Q2 commentary separately stated consolidated total revenue of Rs 210.28 crore and EBITDA of Rs 11.76 crore for the quarter ended September 30, 2026.

Total expenses rose to Rs 198.52 crore from Rs 149.12 crore. Cost of materials consumed increased to Rs 154.46 crore from Rs 103.91 crore, while purchases of stock in trade were Rs 46.54 crore compared with Rs 46.15 crore. Changes in inventories were negative Rs 14.94 crore, compared with negative Rs 11.24 crore in the previous-year quarter.

Finance cost rose to Rs 5.30 crore in Q2 FY27 from Rs 4.05 crore in Q2 FY26, while depreciation and amortisation expenses were Rs 1.26 crore compared with Rs 1.24 crore. After these costs, earnings before interest and tax were Rs 10.50 crore, up from Rs 8.20 crore, and PBT reached Rs 5.20 crore.

What does Globe Enterprises' H1 FY27 performance show?

Globe Enterprises' consolidated first-half performance showed higher revenue, EBITDA, PBT and PAT despite the deferred-tax change. Revenue from operations for H1 FY27 increased 29.26% to Rs 394.05 crore from Rs 304.84 crore, while total income rose 28.70% to Rs 395.11 crore from Rs 307.01 crore.

H1 FY27 EBITDA increased 22.12% to Rs 21.35 crore from Rs 17.49 crore. PBT rose 34.27% to Rs 8.90 crore from Rs 6.63 crore. The PBT growth rate exceeded EBITDA growth in the half year, based on the consolidated income statement presented for the six months ended September 30, 2026.

PAT rose to Rs 6.73 crore in H1 FY27 from Rs 5.86 crore in H1 FY26, unlike the decline reported for Q2 alone. Current tax was Rs 2.04 crore compared with Rs 1.55 crore, and deferred tax changed from a Rs 78.26 lakh credit to a Rs 13.22 lakh expense. The H1 FY27 diluted EPS was Rs 0.15, up 15.38% from Rs 0.13.

The difference between the half-year and quarterly PAT comparisons reflects the reported figures rather than a disclosed explanation. H1 FY27 PBT was Rs 2.27 crore higher than a year earlier, while the net tax charge rose from Rs 76.78 lakh to Rs 2.17 crore. Even with that higher tax charge, the reported half-year PAT remained above H1 FY26.

How did Globe Enterprises' standalone Q2 results compare with consolidated results?

Globe Enterprises' consolidated Q2 FY27 total revenue was Rs 210.28 crore, compared with standalone total revenue of Rs 186.74 crore. Consolidated revenue grew 32.62% year on year from Rs 158.56 crore, while standalone revenue increased 17.94% from Rs 158.34 crore.

Standalone EBITDA rose 27.68% to Rs 9.79 crore in Q2 FY27 from Rs 7.67 crore. Consolidated EBITDA grew 24.50% to Rs 11.76 crore from Rs 9.45 crore. On PBT, the standalone figure was Rs 4.03 crore, up 24.08% from Rs 3.25 crore, whereas consolidated PBT was Rs 5.20 crore.

Management said the integration of Globe Denwash is intended to provide fabrics, garment manufacturing, washing and finishing as an integrated offering under one roof. The presentation does not quantify Globe Denwash's contribution to consolidated revenue, EBITDA or the difference between standalone and consolidated results in Q2 FY27.

What is Globe Enterprises planning after Q2 FY27?

Globe Enterprises' management said it is exploring technical textiles and chemicals while strengthening its domestic and international presence in fashion and apparel. The statement accompanied reported H1 FY27 consolidated total revenue of Rs 395.11 crore and EBITDA of Rs 21.35 crore for the half year ended September 30, 2026.

Management also identified product diversification, value-added offerings, operational efficiency, automation, sustainable manufacturing and long-term customer relationships as focus areas. Its product-development list includes ladies' denim dresses, ladies' denim tops, garment-dyed products and men's jackets, but the presentation sets no revenue target, investment amount or launch timetable for these products.

The disclosed industry setting includes a cautious recovery in textiles, improving export demand, volatile cotton and yarn prices, and global trade uncertainty. Management also cited Bangladesh's competitive position in apparel exports and restrictions on Indian cotton-yarn imports as considerations. These are management's stated industry conditions rather than quantified effects on Q2 FY27 financial results.

Conclusion

Globe Enterprises' Q2 FY27 results show operating growth did not translate into higher quarterly PAT. Revenue from operations rose 33.83% to Rs 209.53 crore, EBITDA increased 24.50% to Rs 11.76 crore and PBT rose 25.09% to Rs 5.20 crore, but the tax line moved from a credit to a charge and PAT declined to Rs 3.82 crore.

The next reported period will indicate whether the H1 FY27 PAT increase to Rs 6.73 crore continues as management explores technical textiles and chemicals and expands its integrated offering. Investors can also watch management's disclosed risks around cotton and yarn prices, export demand, global trade conditions and Bangladesh-related apparel-market developments.