Sonam Q2 Results FY27: Revenue Rises 313% Year-on-Year

Quarterly results show sharp year-on-year growth

Sonam Limited reported standalone revenue from operations of ₹129.39 crore for the quarter ended September 30, 2026, compared with ₹31.32 crore in the corresponding quarter a year earlier. The increase represented year-on-year growth of 313.12%. Net profit rose to ₹3.76 crore from ₹0.90 crore, a growth of 317.78%. Operating profit was reported at ₹5.83 crore for Q2 FY27. The company’s board approved the unaudited Q2 and H1 FY27 results on October 21, 2026. The investor presentation was published on October 22. These figures cover the July to September 2026 quarter on a standalone basis.

Revenue crossed ₹129 crore in Q2

The reported revenue increase was the most visible feature of Sonam’s Q2 performance. Revenue reached ₹129.39 crore, more than four times the ₹31.32 crore recorded in Q2 FY26. The company had also reported strong growth in the first quarter of FY27. Its earlier Q1 commentary attributed growth to new product launches and operating efficiency. Management had said the exceptionally high Q1 growth rate was not expected to continue at the same pace. However, it reiterated its full-year FY27 revenue growth guidance of 25% to 30%.

Profit growth outpaced the quarterly base

Sonam’s Q2 FY27 net profit of ₹3.76 crore was ₹2.86 crore higher than the ₹0.90 crore reported in the year-earlier quarter. The company reported earnings per share of ₹0.94, against ₹0.23 in Q2 FY26, reflecting growth of 308.7%. Operating profit of ₹5.83 crore was up 160.3% year-on-year, according to the reported quarterly figures. The difference between revenue growth and operating-profit growth indicates that costs rose alongside sales. Still, the higher quarterly profit showed that the company remained profitable during a period of rapid revenue expansion. The available material does not provide a detailed Q2 cost breakdown.

H1 revenue reached ₹195.96 crore

For the first half of FY27, Sonam reported revenue from operations of ₹195.96 crore, compared with ₹69.22 crore in H1 FY26. This represented growth of 183.1% year-on-year. H1 EBITDA rose 121.3% to ₹11.95 crore from ₹5.40 crore in the prior-year period. Net profit for H1 increased 203.9% to ₹6.76 crore. The half-year numbers place the September quarter in the context of a strong first-half sales performance. The company’s investor material identifies purchases of stock-in-trade as a significant factor affecting margins during the period.

Margins reflected higher stock purchases

H1 EBITDA margin declined to 6.07% from 7.73% in H1 FY26, despite the increase in absolute EBITDA. Sonam reported purchases of stock-in-trade of ₹155.30 crore for the half year. Higher procurement costs can reduce the percentage of revenue retained as operating profit even when sales and EBITDA rise in absolute terms. H1 PAT margin, however, increased marginally to 3.43%. The results therefore showed a mixed margin picture: strong growth in revenue and profit, but lower EBITDA margin. The reported figures do not indicate that the company has changed its FY27 growth guidance following the Q2 results.

Working capital turned operating cash flow negative

Sonam reported negative operating cash flow of ₹7.21 crore in H1 FY27. The company linked this to working-capital lock-in, particularly an increase in trade receivables to ₹19.44 crore. Receivables represent sales that have been recognised but not yet collected in cash. This means accounting profit and cash generation can move differently during periods of fast growth. The higher receivable balance is relevant for investors assessing the quality of earnings and funding needs. The presentation did not provide further details on collection timelines or changes in credit policy.

Key reported financial figures

Previous guidance remains an important reference

In its Q1 FY27 call, Sonam maintained guidance for 25% to 30% revenue growth for the full financial year. The company had cited continued innovation and expansion of its business-to-consumer presence as support for this target. It also highlighted product design and advance raw-material procurement as operational strengths. Earlier commentary indicated an emphasis on higher product price points, with targeted MRPs around ₹3,000 and ₹6,000. The company also referred to plans to strengthen distribution through additional distributors and channel partners across India. These statements are management plans and guidance, rather than reported outcomes for Q2.

Investor call and reported disclosures

Sonam scheduled its Q2 FY27 earnings conference call for October 26, 2026, and an audio recording of the analyst meeting was made available on October 27. The investor presentation states that the Q2 figures are reported disclosures, rather than management guidance. No Q2 earnings-call transcript was included in the material provided. As a result, the reported revenue, profit, margin and cash-flow figures are the key available reference points. Investors will also track whether receivables and operating cash flow improve as the financial year progresses. Any further guidance or operational commentary would need to come through subsequent company disclosures.

What the results mean

Sonam’s Q2 FY27 results showed substantial growth in standalone revenue and net profit from a lower year-earlier base. The H1 data also confirmed higher revenue, EBITDA and PAT, while showing EBITDA-margin compression and negative operating cash flow. The rise in trade receivables makes working-capital management a relevant issue alongside sales growth. Management’s existing FY27 revenue-growth guidance remains 25% to 30%. The next set of company disclosures will be important for updates on margins, collections and full-year execution.