MethodHub subsidiaries generated 85.1% of H1 FY27 revenue

MethodHub™ subsidiaries generated 85.1% of consolidated H1 FY27 revenue, or Rs 158.87 crore, while the standalone parent’s revenue fell 2.3% year on year to Rs 27.805 crore. Subsidiaries also accounted for 73.5% of Rs 19.458 crore in profit after tax attributable to owners, making them the main source of the group’s reported scale and earnings.

How was MethodHub’s H1 FY27 revenue split between the parent and subsidiaries?

MethodHub’s H1 FY27 revenue was predominantly generated by subsidiaries, which contributed Rs 158.87 crore of the group’s Rs 186.678 crore revenue from operations. The standalone entity contributed Rs 27.80 crore, representing 14.9% of consolidated revenue, according to the presentation’s group-contribution analysis.

The group’s reported revenue increased 133.5% from Rs 79.938 crore in audited H1 FY26 to Rs 186.678 crore in unaudited H1 FY27. MethodHub says the H1 FY27 comparison includes subsidiaries acquired during H2 FY26, while H1 FY26 reflected the pre-acquisition consolidated structure. The change in the business base is therefore part of the reported year-on-year expansion.

Why did MethodHub’s consolidated revenue grow while parent revenue declined?

MethodHub’s consolidated revenue rose because subsidiaries added Rs 158.87 crore to H1 FY27 sales, while the standalone parent’s revenue from operations fell from Rs 28.448 crore in H1 FY26 to Rs 27.805 crore. The standalone decline was 2.3%, in contrast with the 133.5% increase in consolidated revenue.

The presentation identifies acquired subsidiaries as part of the difference between the two reporting periods. Consolidated revenue grew by Rs 106.740 crore year on year, but the parent’s own sales declined by Rs 64.3 lakh. This means the group’s reported top-line growth does not represent a corresponding increase in the parent entity’s standalone revenue.

For the full audited FY26, MethodHub reported standalone revenue of Rs 62.569 crore. Its H1 FY27 standalone revenue of Rs 27.805 crore was below half that full-year figure, while the group’s H1 FY27 consolidated revenue was nearly three times the parent’s own half-year sales. The disclosed mix establishes subsidiaries as the principal source of current group revenue.

Was MethodHub’s standalone parent still profitable in H1 FY27?

MethodHub’s standalone parent remained profitable, reporting H1 FY27 profit after tax, or PAT, of Rs 5.159 crore, up 12.4% from Rs 4.591 crore in H1 FY26. Profit before tax rose 15.8% to Rs 6.891 crore even though revenue from operations declined 2.3%.

Standalone operating earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 8.253 crore in H1 FY27, compared with Rs 8.280 crore a year earlier, a decline of 0.3%. Finance costs and depreciation fell 10.8% to Rs 2.165 crore from Rs 2.427 crore, while other income increased from Rs 9.7 lakh to Rs 80.3 lakh.

The presentation reported a standalone PAT margin of 18.6% and an operating EBITDA margin of 29.7% for H1 FY27. Basic standalone earnings per share, or EPS, were Rs 2.74, not annualised, down 26.1% from Rs 3.71 in H1 FY26. The parent also reported standalone net worth of Rs 130.51 crore and cash of Rs 37.77 crore.

How much of MethodHub’s owner-attributable PAT came from subsidiaries?

MethodHub’s subsidiaries supplied Rs 14.30 crore, or 73.5%, of H1 FY27 PAT attributable to owners of the parent. The standalone parent contributed Rs 5.16 crore, or 26.5%, to consolidated owner-attributable PAT of Rs 19.458 crore under the presentation’s profit-contribution mix.

The profit mix was less concentrated in subsidiaries than the revenue mix. Subsidiaries generated 85.1% of revenue but 73.5% of owner-attributable PAT, while the parent represented 14.9% of revenue and 26.5% of owner-attributable PAT. MethodHub describes the parent as a high-margin India parent and cites its 29.7% operating EBITDA margin, but it does not disclose a separate subsidiary margin.

Consolidated PAT attributable to owners rose 88.0% from Rs 10.349 crore in H1 FY26 to Rs 19.458 crore in H1 FY27. Over the same period, consolidated EBITDA increased 111.3% to Rs 31.239 crore and profit before tax rose 114.0% to Rs 25.285 crore. Consolidated basic EPS increased 23.4% to Rs 10.32, not annualised.

How do MethodHub’s cash flow and borrowings compare with its business mix?

MethodHub generated Rs 23.81 crore of net cash from operating activities in H1 FY27, compared with Rs 3.02 crore in the full FY26 year. The presentation says this cash generation enabled a Rs 43.87 crore short-term debt paydown during the half year.

As of September 30, 2026, consolidated borrowings stood at Rs 75.18 crore after a reported Rs 38.25 crore debt reduction. Consolidated cash was Rs 43.42 crore and net worth was Rs 172.55 crore, up 12.7% from Rs 153.09 crore in FY26. These group figures include the subsidiaries that generated Rs 158.87 crore in H1 FY27 revenue.

The parent held Rs 37.77 crore of the group’s reported Rs 43.42 crore cash balance and had standalone net worth of Rs 130.51 crore. That balance-sheet position differs from the revenue split: the parent produced 14.9% of group revenue, while subsidiaries provided 85.1%. The presentation does not provide standalone and subsidiary cash-flow contributions separately.

Conclusion

MethodHub’s H1 FY27 results show that the parent remained profitable and held Rs 37.77 crore of standalone cash, but subsidiaries had become the main driver of reported group activity. They delivered 85.1% of Rs 186.678 crore in consolidated revenue and 73.5% of Rs 19.458 crore in owner-attributable PAT, while standalone revenue declined 2.3%.

The next reported periods will show whether the acquired subsidiaries continue to support cash generation and debt reduction. Management disclosed Rs 23.81 crore of H1 FY27 operating cash flow, a Rs 43.87 crore short-term debt paydown and Rs 75.18 crore of borrowings as of September 30, 2026, but gave no numerical revenue, profit or debt target.