RNFI H1 revenue rises 16% as EBITDA and PAT margins narrow

RNFI Services Limited's H1 FY27 revenue rose 16.22% to Rs 547.9 crore, while EBITDA margin fell to 5.5% from 6.1% and PAT margin declined to 2.8% from 3.1%. Gross profit increased 25.33% to Rs 111.8 crore, but EBITDA rose 5.84% to Rs 30.2 crore and PAT increased 4.05% to Rs 15.1 crore.

How did RNFI perform in H1 FY27?

RNFI delivered faster growth in revenue and gross profit than in EBITDA and PAT during H1 FY27. Revenue increased by Rs 76.5 crore from Rs 471.4 crore in H1 FY26, while gross profit rose by Rs 22.6 crore from Rs 89.2 crore. EBITDA increased by Rs 1.6 crore from Rs 28.6 crore, and PAT rose by Rs 0.5 crore from Rs 14.6 crore.

RNFI's overall gross-profit margin rose by 1.5 percentage points to 20.4% in H1 FY27 from 18.9% a year earlier. The difference between 25.33% gross-profit growth and the 5.84% increase in EBITDA shows that the higher gross profit was not converted proportionately into operating earnings during the half year.

Why did RNFI's H1 EBITDA and PAT margins narrow?

RNFI's presentation reports the margin decline but does not disclose the expense-line categories that caused it. EBITDA margin decreased by 0.6 percentage points to 5.5% in H1 FY27 from 6.1% in H1 FY26, while PAT margin fell by 0.3 percentage points to 2.8% from 3.1%, despite the improvement in gross-profit margin to 20.4%.

The segment figures show that non-forex EBITDA increased to Rs 30.1 crore in H1 FY27 from Rs 27.9 crore, but its EBITDA margin declined to 12.0% from 12.6%. Non-forex PAT was Rs 15.29 crore against Rs 14.4 crore a year earlier, while forex EBITDA fell to Rs 0.2 crore from Rs 0.7 crore and the forex business reported a PAT loss of Rs 0.14 crore compared with a Rs 0.2 crore profit.

Did RNFI's second quarter improve from the first?

RNFI's Q2 FY27 improved sequentially, with revenue rising 3% to Rs 277.9 crore, gross profit increasing 29% to Rs 63.0 crore, EBITDA rising 63% to Rs 18.7 crore and PAT increasing 99% to Rs 10.1 crore. In Q1 FY27, revenue was Rs 269.9 crore, gross profit was Rs 48.8 crore, EBITDA was Rs 11.5 crore and PAT was Rs 5.1 crore.

Margins also rose in Q2 FY27 versus Q1 FY27. Overall gross-profit margin increased to 22.7% from 18.1%, EBITDA margin rose to 6.7% from 4.3%, and PAT margin increased to 3.6% from 1.9%. Against Q2 FY26, Q2 FY27 revenue increased 25% from Rs 221.8 crore, EBITDA increased 19% from Rs 15.7 crore, and PAT increased 15% from Rs 8.8 crore.

Which RNFI business contributed most gross profit?

RNFI's non-forex business generated nearly all H1 FY27 gross profit, contributing Rs 108.5 crore of the Rs 111.8 crore total. Forex produced higher H1 revenue of Rs 296.8 crore, compared with Rs 251.1 crore for non-forex, but generated only Rs 3.3 crore of gross profit against Rs 108.5 crore from non-forex.

The contrast continued in Q2 FY27. Non-forex revenue rose to Rs 136.3 crore from Rs 114.8 crore in Q1 FY27, while gross profit increased to Rs 61.5 crore from Rs 47.1 crore and gross-profit margin reached 45.1% from 41.0%. Forex revenue declined to Rs 141.7 crore from Rs 155.1 crore, while forex gross profit decreased to Rs 1.5 crore from Rs 1.7 crore.

Conclusion

RNFI's H1 FY27 results show that the earnings profile was shaped by a widening difference between gross-profit conversion and final earnings conversion. Non-forex accounted for Rs 108.5 crore of the group's Rs 111.8 crore gross profit, while forex generated Rs 296.8 crore of revenue but only Rs 3.3 crore of gross profit and a Rs 0.14 crore PAT loss.

The next reported quarters will show whether Q2 FY27's sequential recovery is sustained: EBITDA margin increased to 6.7% from 4.3% in Q1 FY27 and PAT margin rose to 3.6% from 1.9%. RNFI's presentation does not disclose a forward margin target or a plan to address the expense drivers behind the H1 margin decline, so reported segment profitability and earnings conversion remain the measurable follow-up items.