IITL consolidated PAT turns ₹6.66 Cr from year-ago loss; down 53% QoQ as MTM gains cool

Industrial Investment Trust Ltd (IITL) reported consolidated PAT of ₹6.66 Cr for Q2 FY27 (quarter ended September 30, 2026), reversing a ₹3.22 Cr net loss in the year-ago quarter — a clean YoY turnaround, though the comparison is shaped almost entirely by a single non-operating line rather than core business growth. Consolidated total income was ₹11.20 Cr versus -₹0.82 Cr a year ago (a percentage YoY figure isn't meaningful off a negative base) and down 58.3% sequentially from ₹26.85 Cr in Q1 FY27. Standalone PAT, at ₹5.44 Cr (EPS ₹2.46), trails consolidated PAT of ₹6.66 Cr (EPS ₹2.86) by over 20% — a gap wide enough to flag, driven by the consolidation of subsidiary IITL Projects Ltd. IITL is an investment-holding/NBFC-type company whose P&L is dominated by "Net Gain on Fair Value changes" on its investment book rather than conventional operating revenue — that line was ₹5.29 Cr this quarter versus ₹21.57 Cr in Q1 FY27 and -₹5.11 Cr a year ago, and is the single biggest swing factor behind both the YoY turnaround and the QoQ decline. By segment, Investment Activity profit fell to ₹2.08 Cr from ₹19.01 Cr in Q1 FY27 as mark-to-market gains cooled; Lending Activity held broadly steady at ₹4.75 Cr (₹4.62 Cr in Q1); and Real Estate swung to a ₹1.31 Cr profit from a ₹3.70 Cr loss in Q1 FY27 and a ₹0.32 Cr profit a year ago. Net profit margin on total income actually expanded sequentially, from about 53.0% in Q1 FY27 to roughly 59.5% this quarter, but given how volatile the revenue base itself is, this reflects segment mix shifts rather than an operating-efficiency trend. Neither our records nor a web search turned up formal brokerage coverage or consensus estimates for this quarter, so vsStreet is unknown; the company has no prior guidance on record either, so vsGuidance is unknown too — both typical for a micro-cap with no visible sell-side coverage, and no separate management press release accompanied this filing beyond the exchange intimation. The quarter's other corporate actions sit mostly outside the P&L: IITL completed a ₹24.34 Cr buyback of 16.22 lakh shares at ₹150/share (extinguished September 10, 2026), cutting paid-up equity capital from ₹22.55 Cr to ₹20.92 Cr and making EPS non-comparable across periods per the company's own note; separately, the Enforcement Directorate attached 29.46 lakh shares of promoter entity N.N. Financial Services Pvt Ltd under PMLA on September 19, 2026, which the company says it does not foresee materially impacting its financial position or operations; and the board approved an enabling resolution to borrow up to ₹200 Cr for onward lending and working capital, with no funds yet drawn. Subsidiary IITL Projects Ltd remains a flagged risk — its accumulated loss of ₹7.81 Cr has fully eroded its net worth — though at ₹0.87 Cr half-year revenue it is too small to move the consolidated numbers.