Shivam Autotech Limited Q2 Loss Widens to Rs 13.84 Crore

Shivam Autotech Limited reported a net loss of Rs 13.84 crore in Q2 FY27, 11.4% wider than a year earlier, even as revenue from operations rose 18% year-on-year to Rs 133.55 crore. Higher material, stores and spares, and finance costs continued to keep the company in loss.

Why did Shivam Autotech report a wider Q2 loss?

Shivam Autotech reported a net loss of Rs 13.84 crore for the quarter ended September 30, 2026, compared with a loss of Rs 12.42 crore in Q2 FY26. The year-on-year deterioration occurred despite higher revenue, as the increase in operating and financing costs exceeded the revenue expansion during the period.

The quarterly loss was, however, lower than the Rs 20.99 crore loss reported in Q1 FY27. This represents a sequential narrowing of about 34%. The company attributed the pressure on financial performance to higher operational expenses, increased input costs and elevated finance charges.

The result matters because it shows that improved sales have not yet translated into net profitability. Shivam Autotech remains reliant on its ability to manage costs, service debt and execute its stated refinancing and equity-raising plans while operating with a negative net worth.

How did Shivam Autotech's revenue and expenses change in Q2?

Shivam Autotech's revenue from operations increased to Rs 133.55 crore in Q2 FY27 from Rs 113.23 crore in Q2 FY26. Revenue was also 21.9% higher than Rs 109.58 crore in Q1 FY27, indicating a stronger sales run rate in the September quarter than in the preceding quarter.

Total expenses rose 19% year-on-year to Rs 148.46 crore, from Rs 124.77 crore in Q2 FY26. On a sequential basis, expenses increased 13.2% from Rs 131.20 crore in Q1 FY27. The faster increase in expenses relative to revenue on a year-on-year basis limited the benefit of sales growth.

Material costs were a significant component of the expense base. Cost of materials consumed stood at Rs 45.44 crore, while stores and spares consumption was Rs 14.80 crore. Finance costs were Rs 20.93 crore, underscoring the impact of borrowings on the company's quarterly earnings.

What did the auditors say about Shivam Autotech's financial position?

The auditors drew attention to Shivam Autotech's financial position, citing a net loss of Rs 34.83 crore for the first half of FY27 and a negative net worth of Rs 75.52 crore. These figures point to continued balance-sheet stress alongside the quarterly operating performance.

The financial statements were prepared on a going-concern basis. Management cited EBITDA generation of Rs 22.48 crore during the first half, timely servicing of debt obligations, strategic refinancing of borrowings and expected funds from a proposed rights issue as factors supporting that basis of preparation.

The auditors also noted management's judgement regarding unrecognised deferred tax assets of Rs 19.89 crore. Deferred tax assets are generally recognised when future taxable profits are considered sufficiently probable. The stated non-recognition reflects the financial context outlined in the audit observation.

What funding and governance actions has Shivam Autotech disclosed?

Shivam Autotech has proposed a rights issue of up to Rs 119.92 crore, which received in-principle approval from BSE and NSE on September 29, 2026. The proposed issue is part of the measures cited by management in support of its going-concern assessment and is relevant to the company's stated plan to address borrowings.

The company had also announced that its board would meet on November 4, 2026 to consider and approve unaudited financial results for the quarter and half year ended September 30, 2026. The agenda allowed the board to consider other matters permitted by the chairperson.

Ahead of the results process, Shivam Autotech said its trading window would close from October 1, 2026 and remain closed until 48 hours after the board meeting. Such a restriction limits trading by designated persons during the period when unpublished price-sensitive financial information may be under consideration.

How does the Q2 result affect shareholders and operations?

For shareholders, the Q2 numbers present two contrasting developments: revenue grew in both year-on-year and sequential comparisons, while the company remained loss-making and its net worth stayed negative. The narrower loss compared with Q1 FY27 does not alter the fact that expenses of Rs 148.46 crore remained above quarterly revenue of Rs 133.55 crore.

For operations, raw material consumption, stores and spares usage, and finance charges remain important variables. The reported figures show that cost control and refinancing are directly relevant to the company's financial performance, particularly because finance costs alone amounted to Rs 20.93 crore in the quarter.

The proposed rights issue, if pursued as disclosed, would be a key capital-related development for investors to assess alongside operating results. Its stated size of up to Rs 119.92 crore should be viewed in the context of the Rs 75.52 crore negative net worth reported by the auditors at the half-year stage.

Conclusion

Shivam Autotech's Q2 FY27 result showed stronger revenue but a wider year-on-year net loss, as higher material, operating and financing costs continued to weigh on earnings. The sequential reduction in loss from Q1 provides a more favourable comparison, but the half-year loss and negative net worth highlight the company's continuing financial constraints.

The next disclosures to watch are the board's unaudited quarterly and half-year results review, the progress of strategic refinancing and the proposed rights issue of up to Rs 119.92 crore. Investors will also track whether the company can improve the relationship between revenue growth, expenses and finance costs in subsequent periods.