Radiant Q2 profit falls 73% as expenses outpace revenue

Radiant Cash Management Services Ltd reported Q2FY27 consolidated profit after tax of Rs 2.1 crore, down 73.2% year on year, after revenue rose 4.6% to Rs 109.5 crore but other expenses increased 12.9% and EBITDA margin fell to 6.8%.

Why did Radiant’s Q2FY27 profit fall despite revenue growth?

Radiant’s Q2FY27 consolidated profit fell because operating expenses increased faster than income. Revenue rose to Rs 109.5 crore from Rs 104.7 crore in Q2FY26, while total income, including other income, increased 4.4% to Rs 111.7 crore from Rs 106.9 crore. Employee costs increased 9.4% to Rs 25.8 crore and other expenses rose 12.9% to Rs 78.3 crore.

Radiant’s EBITDA fell 45.7% year on year to Rs 7.6 crore in Q2FY27 from Rs 14 crore in Q2FY26. Profit before tax declined 74.5% to Rs 2.4 crore from Rs 9.6 crore, after finance costs rose to Rs 2.2 crore from Rs 1.5 crore and depreciation increased to Rs 3 crore from Rs 2.9 crore. Tax expense declined to Rs 40 lakh from Rs 1.9 crore as pre-tax profit fell.

How did Radiant’s margins change in Q2FY27?

Radiant’s consolidated EBITDA margin was 6.8% in Q2FY27, compared with 11.0% in Q1FY27 and 13.1% in Q2FY26. The sequential reduction was 422 basis points, while the year-on-year reduction was 628 basis points. Other expenses rose 10.3% sequentially to Rs 78.3 crore, against a 3.2% increase in total income to Rs 111.7 crore.

Radiant’s net profit margin declined to 1.8% in Q2FY27 from 4.8% in Q1FY27 and 7.2% in Q2FY26. The 533-basis-point year-on-year decline in net margin followed the reduction in EBITDA as well as finance costs of Rs 2.2 crore, which were unchanged from Q1FY27 but Rs 70 lakh above Q2FY26. A basis point is one-hundredth of a percentage point.

Radiant said in its standalone Q2FY27 highlights that increased minimum wages in many states, shortages of armed guards in a few states and continuing losses at RVL affected EBITDA margin. The company also said it had obtained price revisions from all customers, with the effect expected in the current quarter. That expected effect was not included as a reported Q2FY27 benefit.

Which Radiant segments changed their revenue mix?

Radiant’s cash van operations increased their revenue share to 16.3% in Q2FY27 from 11.5% in Q2FY26, the largest change among reported segments. Cash pick-up and delivery remained the largest service at 56.8% of revenue, although its share declined from 58.3%. Network cash management declined to 20.6% from 21.0%.

Radiant’s cash processing share fell to 4.3% in Q2FY27 from 6.1% a year earlier, while other services declined to 2.0% from 3.1%. The company describes cash van operations as supplying armoured vans and crews, including drivers, armed guards and cash custodians, generally to banks for bulk cash handling. Radiant reported 887 fabricated armoured vans as of September 30, 2026.

What did Radiant report about its footprint and cash movement?

Radiant covered 15,165 pin codes and serviced 79,374 touch points in Q2FY27. Pin-code coverage increased from 14,844 in FY26 and 14,095 in FY25. Touch points increased from 77,521 in FY26 and were also above the 77,982 reported in FY25. The company added 113 end customers during Q2FY27 and reported 9,217 locations and 10,389 employees at September 30, 2026.

Radiant reported cash movement of Rs 41,090 crore in Q2FY27, compared with Rs 43,190 crore in Q1FY27 and Rs 41,260 crore in Q2FY26. The company described year-on-year cash movement as flat, citing the second quarter as a lean season. Revenue from Tier 3 and higher cities accounted for 62% of quarterly revenue.

Radiant’s industry mix also shifted in Q2FY27. Banking, financial services and insurance contributed 37.8% of revenue, up from 33.3% in Q2FY26, while e-commerce declined to 15.8% from 20.7%. Organised retail rose to 19.3% from 18.8%, and e-commerce logistics increased to 2.8% from 1.6%.

Conclusion

Radiant’s Q2FY27 result combined 4.6% consolidated revenue growth with a 73.2% fall in profit after tax to Rs 2.1 crore. Employee costs rose 9.4% and other expenses rose 12.9%, reducing EBITDA to Rs 7.6 crore and EBITDA margin to 6.8%. Cash van operations added 4.8 percentage points to revenue mix while the company expanded to 15,165 pin codes.

The next reported quarter will show whether price revisions with customers affect revenue and margins, as Radiant expects. Management also expects RVL to break even in Q4FY27 after continued losses affected Q2FY27 margins, while Acemoney was reported to be near EBITDA break-even on revenue growth. Wage costs, armed-guard availability and RVL’s stated milestone remain disclosed matters to watch.