Rajoo Engineers Q2 FY27 Revenue Rises 14%, Profit Falls

Q2 results show revenue growth but lower profitability

Rajoo Engineers Limited reported unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. The board approved the results on October 24, 2026, after the Audit Committee’s recommendation. Consolidated revenue from operations for Q2 FY27 stood at ₹101.91 crore, up 14% from the year-earlier quarter. However, consolidated net profit declined as expenses increased, reducing margins. Reported consolidated profit after tax was ₹8.75 crore, compared with ₹14.18 crore in Q2 FY26. Basic and diluted earnings per share fell to ₹0.49 from ₹0.81 a year earlier. The quarter therefore reflected a divergence between top-line expansion and profitability.

Consolidated revenue reached ₹101.91 crore

Revenue from operations on a consolidated basis was ₹101.91 crore in the July-September 2026 quarter. Other income contributed ₹3.59 crore, taking total consolidated income to ₹105.51 crore. The reported revenue comparison indicates that Q2 sales increased from about ₹92.25 crore in the corresponding quarter of FY26. The rise in revenue came despite a sequential decline from the April-June 2026 quarter, when consolidated revenue was ₹123.07 crore. This means Q2 revenue was lower by about 17% on a quarter-on-quarter basis. The company’s Q1 FY27 communication had referred to strong execution and healthy global demand, while the latest filing provides the financial position for Q2 and the first half.

Profit and EPS declined from a year earlier

Consolidated net income for Q2 FY27 was ₹8.75 crore, down 38% from ₹14.18 crore in Q2 FY26, according to the reported earnings figures. EPS correspondingly declined to ₹0.49 per equity share of face value Re. 1 each. The reduction in profit was sharper than the change in revenue, indicating pressure on the cost structure during the quarter. Consolidated profit before tax was ₹10.66 crore. This was lower than ₹20.09 crore in Q2 FY26 and ₹22.28 crore in Q1 FY27. The earnings release attributed the decline in margin to higher expenses. No earnings-call transcript was published for the quarter, so the available figures represent reported results rather than management guidance.

Margin pressure was the central operating issue

Reported EBITDA for the September quarter was ₹13.45 crore, compared with ₹19.34 crore in the corresponding quarter of the previous year. The operating margin was reported at 13.19%, down from 20.22% a year earlier. The earnings data also showed a consolidated profit margin of 8.3%, compared with 15% in Q2 FY26. These measures point to lower conversion of revenue into operating and net profit despite sales growth. Higher expenses were identified as the reason for the margin decline in the reported earnings summary. The filings do not provide a detailed management explanation of individual expense drivers in the information available. Investors will therefore rely on future disclosures for further clarity on cost trends.

Key Q2 FY27 financial figures

First-half revenue crossed ₹224 crore

For the half year ended September 30, 2026, Rajoo Engineers recorded consolidated revenue from operations of ₹224.98 crore. Total consolidated income for the six-month period was ₹231.94 crore. The half-year figures combine the stronger revenue reported in Q1 with the lower sequential revenue recorded in Q2. The company’s September-quarter results were released alongside both standalone and consolidated statements. Its newspaper publication of the unaudited results was disclosed to the exchange on October 26, 2026. The investor presentation for Q1 FY27 had earlier been released on July 24, 2026.

Standalone and subsidiary disclosures matter

The company’s standalone revenue from operations for Q2 FY27 was ₹70.44 crore. The reported standalone profit after tax was ₹9.06 crore. Consolidated profit was lower than standalone profit because the group’s subsidiary, Kohli Printing and Converting Machines Private Limited, recorded a quarterly loss, according to the available reporting. The subsidiary transitioned to Indian Accounting Standards from April 1, 2026. This accounting transition was noted in the company’s disclosures. Rajoo Engineers also stated that the financial effect of new labour codes was not considered material.

Financing activity in the half year

The unaudited standalone cash flow statement for the half year showed proceeds from long-term borrowings of ₹7.43 crore. The disclosed information indicated debt-related financing activity during the period. It did not indicate a fresh equity issuance. Borrowings, profit performance and operating cash generation are relevant measures for investors assessing the company’s financial position. However, the available result summary does not provide a full management discussion of capital allocation plans. The board’s approved results and the limited review reports are available through the company’s disclosures.

Market relevance of the quarterly outcome

The Q2 outcome is significant because Rajoo Engineers expanded consolidated revenue while recording lower operating and net margins. Revenue growth suggests continued business activity, but the decline in profit shows that higher expenses affected earnings conversion. The fall in EPS from ₹0.81 to ₹0.49 also makes the profit trend directly visible on a per-share basis. The sequential reduction in revenue and profit from Q1 adds context to the September-quarter performance. For investors, the central reported variables are future demand conditions, expense movement and the financial performance of the subsidiary. The company has not issued guidance in the information provided.

What to watch after the Q2 FY27 filing

Rajoo Engineers has completed the required board approval and exchange disclosures for its Q2 and half-year results. Its next periodic financial update should provide further evidence on revenue continuity, margins and the contribution from group entities. The company’s disclosed Q1 narrative pointed to execution and global demand, while Q2 figures show that profitability did not keep pace with revenue. The current filing establishes the reported financial base for comparison in subsequent quarters. Any future investor presentation, earnings communication or exchange filing will be important for updated operating detail. Until then, the reported Q2 FY27 results show higher sales alongside materially lower profit and margins.