Xpro H1FY27 PAT hits Rs 14.8 crore as forex charge falls

Xpro India reported consolidated profit after tax (PAT) of Rs 14.8 crore in the first half of financial year 2027 (H1FY27), reversing a Rs 0.5 crore loss in H1FY26, as the net foreign-exchange difference deducted from profit fell to Rs 0.3 crore from Rs 19.9 crore; PAT before that adjustment declined 21.6% to Rs 15.2 crore.

Why did Xpro report a profit after last year's loss?

Xpro reported Rs 14.8 crore of consolidated PAT in H1FY27 because its net foreign-exchange difference was Rs 0.3 crore, compared with Rs 19.9 crore in H1FY26. That movement changed the reported result from a Rs 0.5 crore loss and a negative 0.2% PAT margin to a Rs 14.8 crore profit and a 4.2% PAT margin.

The presentation places the foreign-exchange difference after PAT before forex adjustment. Xpro's PAT before forex adjustment was Rs 15.2 crore in H1FY27, down from Rs 19.3 crore a year earlier; deducting Rs 0.3 crore resulted in reported PAT of Rs 14.8 crore. In H1FY26, deducting Rs 19.9 crore from Rs 19.3 crore resulted in the Rs 0.5 crore loss.

The foreign-exchange movement was larger than the change in operating earnings. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased 25.8% to Rs 31.0 crore from Rs 24.7 crore, while profit before tax decreased 2.0% to Rs 22.4 crore from Rs 22.8 crore. The reported return to profitability and the decline in PAT before forex adjustment are therefore two separate comparisons disclosed in the presentation.

What changed in Xpro's operating profit and margins?

Xpro increased consolidated revenue by 32.6% year on year to Rs 351.1 crore in H1FY27, but its gross-profit margin declined to 27.7% from 28.9%. Gross profit rose 27.2% to Rs 97.3 crore from Rs 76.5 crore, which was slower than revenue growth because the gross margin was 1.2 percentage points lower.

Material costs increased to Rs 254.6 crore from Rs 186.7 crore, employee expenses rose to Rs 19.0 crore from Rs 17.4 crore, and other expenses increased to Rs 47.2 crore from Rs 34.4 crore. EBITDA increased by Rs 6.3 crore to Rs 31.0 crore, but the EBITDA margin declined to 8.8% from 9.3% in the corresponding prior-year half.

Below EBITDA, higher depreciation and finance costs narrowed the gain in earnings before interest and tax (EBIT). Depreciation increased to Rs 10.3 crore from Rs 6.0 crore and finance cost rose to Rs 6.4 crore from Rs 3.4 crore, while other income was Rs 8.0 crore compared with Rs 7.5 crore. EBIT consequently increased 9.6% to Rs 28.7 crore, compared with 32.6% revenue growth.

The quarterly sequence showed higher sales and EBITDA in the second quarter of FY27 (Q2 FY27). Q2 FY27 revenue was Rs 176.7 crore, 1.3% above Rs 174.4 crore in Q1 FY27, while EBITDA increased 7.7% to Rs 16.1 crore from Rs 14.9 crore. Q2 EBITDA margin was 9.1%, compared with 8.6% in Q1 FY27 and 9.3% in H1FY26.

What does Xpro's consolidated cash flow show?

Xpro generated Rs 12.5 crore of net cash from operating activities in the abridged consolidated cash-flow statement labelled Sept-26, compared with a Rs 2.0 crore outflow in the table's Sept-25 comparative period. Cash generated from operations was Rs 16.7 crore against Rs 4.0 crore, while working-capital changes used Rs 15.7 crore compared with Rs 20.3 crore.

The same statement records Rs 68.9 crore of net cash used in investing activities, compared with Rs 141.2 crore in the Sept-25 comparative period. Net financing cash flow was an outflow of Rs 30.6 crore against an inflow of Rs 80.7 crore, producing an Rs 87.0 crore decline in cash and cash equivalents versus an Rs 62.5 crore decline in the earlier period.

What does Xpro's consolidated balance sheet show?

Xpro reported total consolidated assets of Rs 1,241.2 crore at Sept-26, compared with Rs 1,218.3 crore at March-26. Capital work-in-progress increased to Rs 360.0 crore from Rs 299.5 crore, while cash and cash equivalents declined to Rs 10.0 crore from Rs 95.8 crore. Other bank balances rose to Rs 223.4 crore from Rs 204.6 crore, so the cash-and-cash-equivalents line does not represent all disclosed bank balances.

Total consolidated equity increased to Rs 813.4 crore at Sept-26 from Rs 798.4 crore at March-26. Non-current borrowings declined to Rs 232.6 crore from Rs 244.3 crore and current borrowings declined to Rs 41.1 crore from Rs 44.5 crore, while trade receivables increased to Rs 93.2 crore from Rs 69.2 crore and inventories rose to Rs 88.2 crore from Rs 72.8 crore.

Conclusion

Xpro's H1FY27 consolidated result shows a reported return to profitability alongside a lower pre-forex profit measure. Revenue reached Rs 351.1 crore and EBITDA reached Rs 31.0 crore, but gross margin declined to 27.7%, EBITDA margin declined to 8.8%, and PAT before the disclosed forex adjustment fell by Rs 4.1 crore to Rs 15.2 crore.

The next disclosures will show whether the Rs 360.0 crore of capital work-in-progress, higher receivables and inventory, and the reported margin movements affect future earnings and cash flow. The foreign-exchange difference remains an unresolved factor to track after falling to Rs 0.3 crore in H1FY27 from Rs 19.9 crore in H1FY26.