High Energy Batteries Q2 FY27 Profit Rises 185% YoY

High Energy Batteries (India) Ltd announced its Q2 FY27 results on 24 October 2026, covering the quarter ended 30 September 2026. The Chennai-based battery manufacturer reported a sharp improvement in revenue and profitability after a weak first quarter. Revenue from operations rose 68.09% year-on-year to Rs 29.08 crore. Net profit climbed 185.07% to Rs 5.73 crore from Rs 2.01 crore in Q2 FY26. The company had reported a net loss of Rs 1.82 crore in Q1 FY27. The Q2 result therefore marked a return to profitability on a sequential basis. Basic and diluted earnings per share improved to Rs 6.39 from Rs 2.25 a year earlier. The results were approved after the board meeting held on 24 October.

Revenue gains supported the quarterly recovery

Revenue from operations stood at Rs 29.08 crore in Q2 FY27, compared with Rs 17.30 crore in the corresponding quarter of the previous year. This represented a year-on-year increase of 68.1%. On a quarter-on-quarter basis, revenue rose 268.8% from Rs 7.88 crore in Q1 FY27. Total income for the September quarter was Rs 29.43 crore. Revenue from sale of products was reported at Rs 28.77 crore. The difference between revenue from operations and total income reflects the separate presentation of income items in the financial statements. The higher quarterly sales were reflected in the company’s improved operating and net profit metrics. No stock-price movement was provided with the results.

Profit turns positive after Q1 loss

High Energy Batteries posted net profit of Rs 5.73 crore for Q2 FY27. This compares with profit of Rs 2.01 crore in Q2 FY26 and a loss of Rs 1.82 crore in Q1 FY27. The year-on-year increase in profit was reported at 184.4% to 185.07% across the disclosed summaries, owing to rounding. Profit before tax and exceptional items rose to Rs 7.70 crore from Rs 2.71 crore a year earlier. The improvement in profitability came alongside higher revenue and expenditure of Rs 21.74 crore. Cost of materials consumed increased to Rs 11.33 crore from Rs 3.29 crore in the previous-year quarter. Despite this rise in input costs, the company reported stronger operating performance in Q2.

Key Q2 FY27 financial figures

Margins improved despite lower other income

The company’s operating profit margin was reported at 28.14% in Q2 FY27. This was a significant improvement from the negative 4.3% EBITDA margin reported in the year-ago period. Net profit margin rose to about 19.5%, compared with 9.4% in Q2 FY26. Another reported calculation placed the quarterly net margin at 19.7%, with the difference arising from the revenue base used. Other income fell to Rs 0.36 crore from Rs 4.10 crore a year earlier. This means the reported improvement in Q2 profitability occurred even as non-operating income declined. The financial data indicates that the quarter’s profit expansion was linked to stronger operating activity rather than higher other income.

Aerospace and naval batteries remained the main business

High Energy Batteries operates through Aerospace, Naval and Power System Batteries, along with Lead Acid Storage Batteries. The aerospace, naval and power systems business remained the company’s primary segment in Q2 FY27. Segment revenue from this business was Rs 29.08 crore during the quarter. Segment profit increased to Rs 8.46 crore from Rs 3.40 crore a year earlier, a rise of 149%. The Lead Acid Storage Batteries division reported no revenue for the quarter. It recorded a segment loss of Rs 0.14 crore. The board is evaluating proposals to revive the Lead Acid Battery division. A formal decision on this matter is expected in Q4 FY27, according to the board meeting outcome.

Half-year profit also rose year-on-year

For the six months ended 30 September 2026, High Energy Batteries reported net profit of Rs 3.91 crore. This was higher than Rs 2.80 crore recorded in the first half of FY26. The increase in half-year profit was 39.8% year-on-year. Revenue for the first six months stood at Rs 37.52 crore, compared with Rs 35.58 crore in the corresponding prior-year period. The half-year numbers include the Q1 FY27 loss and the stronger Q2 recovery. As a result, the Q2 performance was important in lifting the first-half profit above the previous year’s level. The company’s half-year financial position also reflected changes in working-capital items.

Inventory and borrowings increased

Inventories stood at Rs 50.59 crore as of 30 September 2026. This was up from Rs 41.08 crore at 31 March 2026. Trade receivables declined to Rs 23.90 crore from Rs 28.51 crore over the same period. Borrowings increased to Rs 17.71 crore from Rs 11.56 crore at the end of March. These movements indicate a higher inventory position alongside lower receivables. Operating cash flow for the first half was negative Rs 0.64 crore. However, this was an improvement from the negative Rs 6.10 crore operating cash flow reported in H1 FY26. Investors tracking the company’s financial position may therefore follow future disclosures on inventory, borrowing and cash generation.

What the results mean for investors

The Q2 FY27 result showed a substantial recovery from the company’s Q1 loss. Revenue growth, improved operating margin and higher segment profit in the core aerospace and naval battery business were central to the quarter’s outcome. The reduction in other income compared with the prior-year quarter also provides context for the operating improvement. At the same time, the increase in inventories and borrowings remains relevant to the company’s working-capital profile. The Lead Acid Storage Batteries business continued to report a loss and did not generate quarterly revenue. Management’s evaluation of a revival proposal for that division is therefore a pending corporate development. The next formal decision indicated in the board outcome is expected in Q4 FY27.

Conclusion

High Energy Batteries closed Q2 FY27 with revenue of Rs 29.08 crore and net profit of Rs 5.73 crore. The company moved from a Q1 loss to a profitable second quarter, while its core aerospace, naval and power systems business reported higher segment profit. The H1 FY27 profit also exceeded the prior-year level. Future disclosures will be watched for progress on the Lead Acid Battery division, inventory levels, borrowings and operating cash flow.