Precot Limited Q2 Profit Rises 331% as Revenue Grows 32%

Precot Limited reported a 330.6% year-on-year increase in consolidated Q2 FY27 net profit to ₹30.26 crore for the quarter ended September 30, 2026, as revenue from operations rose 32.1% to ₹270.40 crore and total income reached ₹283.21 crore.

What did Precot report in Q2 FY27?

Precot reported materially higher profit and revenue for the July-September 2026 quarter. Consolidated profit after tax rose to ₹30.26 crore from ₹7.03 crore in Q2 FY26. Revenue from operations increased from ₹204.76 crore a year earlier to ₹270.40 crore, while total income, including other operating revenue and other income, was ₹283.21 crore.

The company disclosed the results on the NSE on November 13, 2026. Its consolidated figures were identical to standalone figures for the periods presented because its subsidiaries had no business operations. Basic and diluted earnings per share for the quarter were ₹25.22, compared with ₹5.86 in the corresponding quarter of the previous year.

Profit before tax was ₹39.08 crore, up from ₹8.63 crore in Q2 FY26. Tax expense was ₹8.82 crore, leaving net profit of ₹30.26 crore. On a sequential basis, net profit rose from ₹26.60 crore in Q1 FY27 and revenue from operations rose from ₹236.41 crore.

How did Precot's quarterly margins and earnings change?

Precot's reported EBITDA increased 115.6% year on year to ₹54.4 crore, and the EBITDA margin improved to 19.3% from 11.8%. This represents a year-on-year improvement of about 7.4 percentage points, although the EBITDA margin was lower than 20.2% reported for Q1 FY27.

Profit before tax increased 352.7% from ₹8.6 crore in Q2 FY26 to ₹39.1 crore in Q2 FY27. The growth in profit before tax exceeded revenue growth because the year-ago comparison base was lower and operating profitability was stronger during the latest quarter.

Some result summaries separately show an operating margin of 13.8% for Q2 FY27, versus 4.0% a year earlier and 14.3% in Q1 FY27. This measure is distinct from the EBITDA margin presented in the quarterly comparison, so the two percentages should not be treated as interchangeable.

Why do the revenue figures differ across Precot result summaries?

The difference arises because the reported financial statement separates revenue from operations from other operating revenue and other income. Precot's revenue from operations was ₹270.40 crore in Q2 FY27, while other operating revenue was ₹12.15 crore and other income was ₹0.67 crore, taking total income to ₹283.21 crore.

Several market summaries describe revenue as about ₹282 crore or ₹283 crore, a presentation that is closer to total income or a broader revenue measure. Investors comparing reports should therefore identify whether a figure refers specifically to revenue from operations or to total income before calculating growth or valuation ratios.

For the first half of FY27, revenue from operations was ₹506.81 crore, compared with ₹401.69 crore in H1 FY26. Total income for the six months ended September 30, 2026 was ₹530.32 crore, while net profit was ₹56.87 crore, compared with ₹18.33 crore in the year-earlier half-year period.

What other disclosures did Precot make with the results?

Precot disclosed that it recognised a restatement loss of ₹0.82 crore during the half-year ended September 30, 2026. The company also reported positive operating cash flow of ₹36.26 crore for H1 FY27. The available result summary said the review identified no material issue.

The company established two subsidiaries, Precot Holdings Limited and Dubai-based Precot International (FZE). However, the subsidiaries had not started business operations in the periods presented, which is why consolidated and standalone financial results were the same.

These disclosures provide context for assessing the reported numbers. The subsidiaries did not contribute to Q2 FY27 revenue or profit, while the restatement loss is a separate half-year disclosure that readers should distinguish from the quarterly profit after tax figure.

How do Precot's Q2 results matter for investors?

Precot's Q2 FY27 performance showed growth in both revenue and profitability, with net profit rising faster than revenue and EBITDA margin improving from the previous year. The quarterly figures also indicate sequential growth, as net profit rose 13.7% from Q1 FY27 and revenue from operations increased from ₹236.41 crore.

Market reports said Precot shares rose 7% after the financial results. The provided information does not specify the share price, trading volume, or the period over which that movement occurred. As a result, the financial statement offers clearer evidence of operating performance than the available stock-price reference.

For investors, the main reported indicators are the relationship between revenue growth, EBITDA margin, profit before tax and cash generation. The company has also created new subsidiaries, but no operating contribution from them was recorded in Q2 FY27. Their future activity is therefore not reflected in the current quarter's financial performance.

Conclusion

Precot delivered a substantially higher Q2 FY27 profit, with consolidated net profit of ₹30.26 crore rising 330.6% year on year and revenue from operations increasing 32.1% to ₹270.40 crore. Higher EBITDA and a wider EBITDA margin supported the increase in earnings, while total income reached ₹283.21 crore after including other operating revenue and other income.

The next disclosures to watch are subsequent quarterly results, progress in the operations of Precot Holdings Limited and Precot International (FZE), and any further explanation related to the ₹0.82 crore half-year restatement loss. Investors can also track whether the reported margin improvement and positive operating cash flow of ₹36.26 crore in H1 FY27 are sustained.