Valiant Q2 PAT rises 39% as consolidated EBITDA margin reaches 46.32%

Valiant Communications Limited (Valiant) reported consolidated profit after tax of Rs 7.32 crore in Q2-CY2026-27, up 39% from Rs 5.27 crore a year earlier, while its EBITDA margin widened to 46.32% from 38.49% despite deferred equipment deliveries caused by disruption in electronic-component supply chains.

How did Valiant's consolidated Q2 results change year on year?

Valiant's consolidated revenue rose 19% year on year to Rs 24.07 crore in Q2-CY2026-27, while EBITDA increased 44% to Rs 11.15 crore and PAT increased 39% to Rs 7.32 crore. The comparable Q2-PY2025-26 figures were Rs 20.17 crore of revenue, Rs 7.76 crore of EBITDA and Rs 5.27 crore of PAT.

The faster rise in EBITDA than revenue lifted the EBITDA margin by 7.83 percentage points to 46.32%. EBITDA, or earnings before interest, taxes, depreciation and amortisation, includes other income in Valiant's presentation. Consolidated other income was Rs 1.18 crore in Q2-CY2026-27, compared with Rs 83 lakh in Q2-PY2025-26.

Profit before tax rose 47% to Rs 10.28 crore from Rs 7.01 crore, broadly tracking the increase in EBITDA. Basic earnings per share increased to Rs 6.26 from Rs 4.61, while diluted earnings per share rose to Rs 6.19 from Rs 4.61. These per-share figures reflect the consolidated Q2 result rather than the standalone business alone.

What does Valiant's first-half performance show?

Valiant's consolidated H1-CY2026-27 revenue increased 29% to Rs 49.49 crore and PAT increased 51% to Rs 15.11 crore. In H1-CY2025-26, the corresponding figures were Rs 38.49 crore of revenue and Rs 9.99 crore of PAT, so first-half revenue growth was higher than the 19% increase reported for Q2 alone.

First-half EBITDA rose 53% to Rs 22.49 crore from Rs 14.69 crore, taking the margin to 45.44% from 38.17%. The 7.27-percentage-point expansion over the first six months was slightly below the 7.83-percentage-point quarterly expansion, while revenue and profit before tax both increased.

The H1 profit before tax figure was Rs 20.79 crore, up 57% from Rs 13.23 crore. The presentation shows that EBITDA and profit before tax increased faster than revenue in both the quarter and first half, alongside the reported margin expansion.

How did Valiant's standalone result compare with consolidated performance?

Valiant's standalone Q2-CY2026-27 revenue was Rs 23.29 crore, 16% above Rs 20.06 crore in Q2-PY2025-26, compared with consolidated revenue growth of 19%. The consolidated revenue figure of Rs 24.07 crore was therefore Rs 78 lakh above standalone revenue for the quarter.

Standalone EBITDA was Rs 10.85 crore, up 46% from Rs 7.42 crore, and the standalone EBITDA margin reached 46.58%, versus 36.98% a year earlier. That 9.60-percentage-point increase was larger than the consolidated margin improvement, while the standalone Q2 margin was 0.26 percentage points above the consolidated 46.32%.

Standalone PAT grew 49% to Rs 7.46 crore from Rs 4.99 crore, whereas consolidated PAT rose 39% to Rs 7.32 crore from Rs 5.27 crore. For H1-CY2026-27, standalone revenue was Rs 48.43 crore and standalone PAT was Rs 15.54 crore, compared with consolidated revenue of Rs 49.49 crore and consolidated PAT of Rs 15.11 crore.

What caused deferred deliveries, and what has management said about revenue?

Valiant said scheduled equipment deliveries against certain orders were deferred during Q2 FY2026-27 because global supply-chain disruptions affected key electronic components. The company said these deliveries are expected to be executed in coming quarters, while it reported 19% consolidated revenue growth in Q2-CY2026-27.

Management said quarter-to-quarter variability is normal in its industry and has historically evened out over the financial year. It also said margins improved at every level during the quarter and, supported by the confirmed order book, it expects revenue to catch up over the rest of the year and forthcoming quarters. This is management's expectation, not a quantified revenue forecast.

The presentation lists a confirmed gross order book of Rs 123.88 crore. It separately identifies Rs 3.50 crore or more of L1 status opportunities, Rs 33 crore or more of advanced opportunities and Rs 190 crore or more of forthcoming business opportunities; only the confirmed gross order book is described as confirmed, while the other categories may change with tender outcomes, bidding results, scope revisions, cancellation or retendering.

How is Valiant expanding its critical-infrastructure offering?

Valiant manufactures communication, transmission, protection, synchronisation, cybersecurity, data-storage and data-backup products for critical infrastructure, including digital substations and smart-grid networks. Its identified product areas include phasor measurement units for grid monitoring, grid islanding and wide-area monitoring systems, along with NAS/SAN storage and backup solutions.

During Q2 FY2026-27, Valiant secured purchase orders for data-storage servers with backup and time-synchronisation equipment using GPS and NavIC for Power Grid Corporation of India Limited as end user. The company also said it had previously commissioned data-centre equipment at THDC Limited, and that its data-storage equipment passed a Category-1 technical evaluation as a Class-1 indigenous manufacturer.

The orders add a data-centre application to Valiant's stated critical-infrastructure markets, though the presentation does not disclose their commercial value. The equipment combines storage and backup with GPS-plus-NavIC time synchronisation, a product configuration Valiant says is relevant to power utilities, defence and enterprise customers.

Conclusion

Valiant's Q2-CY2026-27 results combined 19% consolidated revenue growth with materially faster expansion in EBITDA and PAT, producing a 46.32% EBITDA margin and Rs 7.32 crore of PAT. The comparison with the prior-year quarter and with standalone performance shows that margin expansion occurred across both reporting views even as some scheduled equipment deliveries moved out of the quarter.

The next disclosed items to watch are execution of the deferred deliveries that management expects in coming quarters and its expectation that revenue will catch up during the rest of the year. Conversion of the Rs 123.88 crore confirmed gross order book is also relevant, while the Rs 3.50 crore or more L1 pipeline, Rs 33 crore or more advanced opportunities and Rs 190 crore or more forthcoming opportunities remain unconfirmed categories subject to tender and bidding outcomes.