Highness H1 FY27 net profit rises 168% as EBITDA margin expands

Highness reported H1 FY27 net profit of Rs 2.47 crore, up 167.90% year on year, as EBITDA margin increased by 799 basis points to 32.07%. Revenue from operations rose 63.42% to Rs 12.01 crore and EBITDA increased 117.64% to Rs 3.85 crore, according to its investor presentation.

How did Highness perform in H1 FY27?

Highness increased revenue from operations to Rs 12.01 crore in H1 FY27 from Rs 7.35 crore in H1 FY26, a year-on-year increase of 63.42%. EBITDA, or earnings before interest, tax, depreciation and amortisation, rose faster than revenue, reaching Rs 3.85 crore from Rs 1.77 crore. EBITDA growth was 117.64%, compared with the 63.42% rise in revenue.

Highness reported net profit of Rs 2.47 crore in H1 FY27, compared with Rs 92.17 lakh in H1 FY26. This represented year-on-year net-profit growth of 167.90%, exceeding both revenue and EBITDA growth. Diluted earnings per share, or EPS, increased to Rs 4.78 from Rs 1.78, matching the stated 167.90% increase in net profit.

How did Highness's margins change in H1 FY27?

Highness's EBITDA margin increased to 32.07% in H1 FY27 from 24.08% in H1 FY26, a rise of 799 basis points. One basis point equals one-hundredth of a percentage point. The company generated Rs 3.85 crore of EBITDA on Rs 12.01 crore of revenue in H1 FY27, compared with Rs 1.77 crore on Rs 7.35 crore a year earlier.

Highness's net profit margin also expanded, reaching 20.56% in H1 FY27 from 12.54% in H1 FY26, an increase of 802 basis points. The movement from EBITDA to net profit included Rs 52.18 lakh of depreciation and amortisation, Rs 48.50 lakh of financial costs, Rs 85.12 lakh of current tax, a deferred-tax credit of Rs 3.12 lakh and Rs 44.48 lakh of other income in H1 FY27.

What changed in Highness's H1 FY27 cost base?

Highness's total expenses rose to Rs 8.16 crore in H1 FY27 from Rs 5.58 crore in H1 FY26, while revenue increased by Rs 4.66 crore over the same comparison. Cost of materials consumed was nearly unchanged at Rs 2.47 crore, compared with Rs 2.45 crore a year earlier. Changes in inventories increased to Rs 22.97 lakh from Rs 17.49 lakh.

Highness's employee benefits expense rose to Rs 2.61 crore from Rs 1.35 crore, while other expenses increased to Rs 2.85 crore from Rs 1.61 crore. These two expense lines together increased by Rs 2.50 crore, compared with a Rs 2.58 crore increase in total expenses. EBITDA rose by Rs 2.08 crore as the Rs 4.66 crore revenue increase exceeded the rise in total expenses.

How does H1 FY27 compare with Highness's recent annual results?

Highness recorded annual revenue of Rs 16.12 crore in FY26, up from Rs 14.07 crore in FY25 and Rs 10.70 crore in FY24. FY26 EBITDA was Rs 6.62 crore, compared with Rs 4.52 crore in FY25, while FY26 net profit reached Rs 4.10 crore from Rs 2.46 crore. The FY26 annual net profit margin was 25.46%, above FY25's 17.47%.

Highness's H1 FY27 EBITDA margin of 32.07% was below its FY26 annual EBITDA margin of 41.05%, but above the 24.08% reported in H1 FY26. The annual EBITDA margin also varied across the earlier periods, standing at 55.73% in FY24 and 32.11% in FY25. The H1 FY27 improvement is therefore clear against the corresponding half year, while remaining below the FY26 full-year level.

What balance-sheet movements accompanied Highness's H1 FY27 earnings?

Highness reported total assets of Rs 43.62 crore at H1 FY27, compared with Rs 45.88 crore at FY26. Cash and cash equivalents declined to Rs 1.68 crore from Rs 21.81 crore, while trade receivables increased to Rs 13.73 crore from Rs 10.37 crore. Other current assets rose to Rs 10.53 crore from Rs 73.45 lakh, while inventories were Rs 8.20 crore compared with Rs 8.43 crore at FY26.

Highness's shareholders' funds increased to Rs 29.08 crore at H1 FY27 from Rs 27.16 crore at FY26. Long-term borrowings rose to Rs 2.70 crore from Rs 1.88 crore, while short-term borrowings declined to Rs 4.38 crore from Rs 6.07 crore. Total current liabilities decreased to Rs 11.52 crore from Rs 16.60 crore, including a decline in trade payables to other parties to Rs 64.58 lakh from Rs 4.32 crore.

Conclusion

Highness delivered faster growth in operating profit and net profit than in revenue during H1 FY27. Revenue rose 63.42% to Rs 12.01 crore, EBITDA increased 117.64% to Rs 3.85 crore, and net profit grew 167.90% to Rs 2.47 crore. The increases in EBITDA margin to 32.07% and net profit margin to 20.56% show that profit growth was accompanied by higher reported margins.

The presentation identifies Highness as eligible for a 25% capital-expenditure subsidy under Target Segment D of the Electronics Component Manufacturing Scheme, subject to minimum qualifying capital expenditure of Rs 10 crore. It does not disclose the timing or amount of any qualifying capital-expenditure programme, leaving that potential subsidy-related development unresolved.