Revathi Equipment India Limited Q2 PAT rises 761.9% to Rs 3.62 crore

Revathi Equipment India Limited reported consolidated net profit of Rs 3.62 crore in Q2 FY27, up 761.9% year-on-year from Rs 0.42 crore, while consolidated revenue rose 68.11% to Rs 38.38 crore for the quarter ended September 30, 2026.

What did Revathi Equipment India report for Q2 FY27?

Revathi Equipment India reported a substantial improvement in its consolidated financial performance for the July to September 2026 quarter. The company announced the unaudited Q2 FY27 results on November 4, 2026, after its board meeting convened to consider the standalone and consolidated numbers.

Consolidated revenue increased to Rs 38.38 crore from Rs 22.83 crore in Q2 FY26. Net profit after tax rose to Rs 3.62 crore from Rs 0.42 crore a year earlier. Operating profit was Rs 4.86 crore, compared with an operating loss of Rs 0.94 crore in the corresponding quarter of the previous financial year.

The shift from an operating loss to an operating profit is central to the quarter's reported improvement. The supplied results attribute the rise in profitability to stronger top-line growth and improved operational efficiency, while noting a marginal increase in finance costs.

How did the company’s standalone Q2 numbers compare?

Revathi Equipment India’s standalone results also showed higher sales and profit for the September quarter, although they differ from the consolidated figures. Standalone revenue from operations was Rs 37.54 crore, up 68.6% from Rs 22.26 crore in Q2 FY26.

Standalone net profit was Rs 4.01 crore for the quarter ended September 30, 2026, compared with Rs 0.32 crore in the corresponding prior-year period. These figures should not be directly substituted for the consolidated data, since the two statements cover different reporting scopes.

The difference is relevant for investors reviewing quarterly disclosures. The headline consolidated PAT was Rs 3.62 crore, whereas standalone PAT was Rs 4.01 crore. Similarly, consolidated revenue stood at Rs 38.38 crore and standalone revenue from operations was Rs 37.54 crore.

The company had notified the market on October 23 that its board would meet on November 4 to approve the September-quarter unaudited results. It also stated that the insider trading window would remain closed from October 1 until 48 hours after the results release, in line with SEBI insider trading rules.

What do receivables and inventory indicate about operations?

Revathi Equipment India reported lower trade receivables and inventories at the end of September 2026 despite the increase in revenue during the first half of FY27. Trade receivables fell to Rs 46.48 crore as of September 30, 2026, from Rs 60.44 crore as of March 31, 2026.

Inventory declined to Rs 57.33 crore from Rs 71.86 crore over the same period. The reduction in these working-capital items alongside higher sales points to improved collection efficiency or faster cash conversion, as indicated in the supplied information. It also indicates inventory management during a period of higher production volumes.

Working-capital data can matter as much as profit growth for an equipment manufacturer because sales expansion may otherwise increase funds locked in receivables and stock. In this case, both reported balances declined between the March and September reporting dates.

The available information does not provide operating cash flow for the September quarter. Therefore, the receivables and inventory movements provide useful context on balance-sheet management, but they do not by themselves establish the company's cash generation for the period.

How does Q2 compare with Revathi Equipment India’s recent performance?

Revathi Equipment India’s Q2 consolidated revenue of Rs 38.38 crore followed revenue of Rs 30.02 crore in Q1 FY27. Consolidated PAT in Q1 FY27 was Rs 2.04 crore, with basic and diluted earnings per share of Rs 6.64 on a non-annualised basis.

For Q1 FY27, the company had reported consolidated revenue growth of 34.86% from Rs 22.26 crore and a 257.89% rise in net profit from Rs 0.57 crore. EBITDA for that quarter was Rs 5.84 crore, compared with Rs 4.16 crore a year earlier. The Q2 release therefore extends a period in which the company has reported higher quarterly revenue and profit than in the comparable prior-year quarters.

The broader annual comparison remains mixed. For the year ended March 2026, consolidated sales declined 19.94% to Rs 142.93 crore from Rs 178.53 crore in the preceding year. Full-year consolidated net profit fell 31.42% to Rs 13.84 crore from Rs 20.18 crore.

Against that backdrop, the year-on-year growth reported in the first two quarters of FY27 is important because it follows a financial year of lower annual sales and profit. The supplied figures do not disclose a full-year FY27 target or guidance, so the quarterly numbers should be assessed as reported performance rather than as an indication of an annual outcome.

What was the market and business significance of the Q2 update?

Revathi Equipment India’s Q2 update matters because revenue growth was accompanied by an improvement in operating profit and a sharp increase in consolidated PAT. Revenue grew by Rs 15.55 crore year-on-year, while operating performance moved from a Rs 0.94 crore loss to a Rs 4.86 crore profit.

For investors, the key reported indicators are the profit conversion, the distinction between consolidated and standalone numbers, and the decline in receivables and inventory. The company has not provided a share-price movement, order-book figure, customer update, or earnings guidance in the information available, so no direct market-price conclusion can be drawn from the results alone.

The board also authorised a new corporate office at Plot No. 505, Udyog Vihar Phase-III, Gurugram, Haryana. The facility is to handle business and administrative activities with effect from November 4, 2026. The announcement identifies the location and purpose but does not disclose the investment amount, expected capacity, or financial impact.

Conclusion

Revathi Equipment India delivered stronger consolidated Q2 FY27 numbers, with revenue rising 68.11% to Rs 38.38 crore and PAT increasing 761.9% to Rs 3.62 crore. The move into operating profit, together with lower receivables and inventory than at March 2026, adds operational context to the improvement in quarterly earnings.

The next disclosures will show whether the higher revenue and profitability are sustained and whether working-capital balances continue to improve. Investors can also watch the operational rollout of the Gurugram corporate office, which the board authorised to take effect on November 4, 2026.