Sumit Woods Limited Q2 Revenue Rises 186%, Profit Falls 74.5%

Sumit Woods Limited reported Q2 FY27 revenue of ₹36.65 crore, up 185.9% year-on-year, but net profit fell 74.5% from the preceding quarter to ₹1.03 crore for the quarter ended September 30, 2026. The results show sharp annual revenue growth alongside a substantial sequential decline in profitability.

What did Sumit Woods report for Q2 FY27?

Sumit Woods reported revenue of ₹36.65 crore and net profit of ₹1.03 crore for Q2 FY27. Revenue was 185.9% higher than the year-earlier quarter, while it was 19% lower than the ₹45.18 crore reported for Q1 FY27.

The quarterly result was approved by the board on November 4, 2026, following the end of the September quarter. The company filed its financial results for the quarter and half-year ended September 30, 2026 with the National Stock Exchange. The board meeting outcome also recorded unmodified review opinions from the auditors.

The reported profit decline was much steeper than the revenue change. Sumit Woods had reported net profit of about ₹4.04 crore in Q1 FY27, making the Q2 figure of ₹1.03 crore a 74.5% sequential fall. This contrast is central to the market's response to the result.

Why did revenue growth not translate into higher quarterly profit?

The available results show that the rise in year-on-year revenue did not result in comparable profit growth during Q2 FY27. Revenue increased from a low base in Q2 FY26, but sequential revenue declined from the June 2026 quarter while net profit dropped sharply.

The provided information does not specify individual cost heads, project-level expenses, or other factors behind the change in profitability. Therefore, the results establish the size of the sequential decline but do not provide a verified breakdown of why profit fell faster than revenue.

Sumit Woods' operating cash flow remained negative in the first half of FY27. This points to the working-capital intensity of the business model, where accounting revenue and cash generation may differ during a reporting period. The company has also been described as having a moderately strong balance sheet, although short-term working capital has been identified as an area requiring attention.

How do Q2 FY27 numbers compare with earlier periods?

Q2 FY27 represented a recovery in revenue from the comparable quarter a year earlier, but a weaker outcome than Q1 FY27. The company's ₹36.65 crore quarterly revenue was substantially above the year-ago level, yet lower than the June-quarter revenue of ₹45.18 crore.

For Q1 FY27, Sumit Woods reported revenue of ₹45.18 crore and net profit of about ₹4.04 crore. The Q1 revenue was 6.88% higher year-on-year, while net profit rose 17.78% year-on-year. The Q2 result reversed that stronger sequential profit trend.

The company separately reported Q2 FY27 total income of ₹36.85 crore, compared with ₹47.24 crore in Q1 FY27 and ₹13.53 crore in Q2 FY26. This total-income measure showed a 22.0% quarter-on-quarter decline and 172.4% year-on-year growth. It is distinct from the ₹36.65 crore revenue figure cited in the quarterly update.

What does the result mean for shareholders and operations?

For shareholders, the result presents two opposing data points: strong annual revenue growth and a sharp quarterly reduction in net profit. The market reaction was described as disappointed by the sequential profitability decline despite the strong year-on-year revenue increase.

The result also puts focus on cash conversion. Negative operating cash flow during H1 FY27 means investors will likely track whether reported project revenue is followed by improvement in operating cash generation and working-capital management. The disclosed information does not provide a forward forecast or target for these measures.

The wider backdrop is mixed. For the year ended March 2026, Sumit Woods reported revenue of ₹94.88 crore, down 32.63% from ₹140.83 crore in FY25. Net profit for FY26 declined 47.03% to ₹6.06 crore from ₹11.44 crore in FY25. Against that annual comparison, the high year-on-year percentage growth in Q2 FY27 partly reflects a lower base in the corresponding quarter.

Conclusion

Sumit Woods delivered a substantial year-on-year increase in Q2 FY27 revenue, but the 74.5% sequential fall in net profit to ₹1.03 crore was the more significant development for investors assessing the quarter. The gap between revenue growth, profit performance and negative operating cash flow highlights the importance of execution and working-capital discipline.

The next filings should be watched for evidence on profit recovery, cash-flow movement and the working-capital position. Sumit Woods has made quarterly results, annual reports and related financial documents available through the Annual Reports and Financial Documents section of its Resources tab.