Rajoo Engineers Q2 FY27: consolidated PAT sinks 41% YoY to ₹8.3 Cr as margins halve

On a consolidated basis — primary for the group — Rajoo Engineers' PAT fell 41.4% YoY to ₹8.26 Cr (₹14.10 Cr in Q2 FY26) and 52.4% QoQ (₹17.35 Cr in Q1 FY27), even as consolidated revenue grew 10.5% YoY to ₹101.91 Cr, though it fell 17.2% QoQ from the seasonally stronger ₹123.07 Cr clocked in Q1. Basic EPS fell to ₹0.49 from ₹0.81 a year ago and ₹0.87 last quarter. No exceptional items were booked in either period, so the decline is purely operational. Standalone PAT of ₹9.06 Cr (down 34.7% YoY, 28.7% QoQ) actually printed higher than the consolidated number — a reversal traced to subsidiary Kohli Printing and Converting Machines swinging to a ₹1.22 Cr quarterly loss per the auditor's note, a roughly 9% standalone-vs-consolidated divergence worth flagging rather than treating as an error. Standalone revenue itself fell 23.3% YoY to ₹70.44 Cr, meaning the subsidiary/JV layer is what delivered the group's YoY revenue growth. The margin story is the real driver: consolidated OPM (EBITDA margin) nearly halved to 9.9% from 19.8% a year ago and 17.7% last quarter, while NPM fell to 8.1% from 14.7% YoY and 13.7% QoQ. Net material cost (materials consumed adjusted for the finished-goods inventory build) rose to 69.7% of revenue (₹71.02 Cr) from 59.7% (₹55.07 Cr) a year ago. Employee costs rose 43.9% YoY to ₹8.97 Cr, depreciation nearly doubled YoY to ₹2.22 Cr, and finance costs rose 23% YoY to ₹0.85 Cr — consistent with roughly ₹9 Cr of capex added to standalone property, plant and equipment in the half year, partly funded by ₹8.80 Cr of fresh long-term borrowings. This reads as a capacity-investment-phase squeeze: capex, headcount and input costs are running ahead of the revenue they are meant to support. Management has issued no formal guidance or outlook on record, and our records hold no prior concall commentary to check consistency against — so neither can be graded this quarter; that gap is worth stating rather than skipping. No Street/consensus estimate for this quarter's PAT or revenue could be found in a web search: Rajoo Engineers is a micro-cap with only sparse sell-side coverage, so the print cannot be scored against a forecast and vsStreet is marked unknown rather than assumed in line. No management press release accompanying this result was available to reconcile against either. Separately, the company completed payout of its FY26 final dividend of 15% (₹0.15/share) on October 23, 2026 — the day before this result — and on September 9, 2026 announced a partnership with Rieckermann to expand into Southeast Asia, a distribution initiative too recent to show up in this quarter's numbers. The widening gap between YoY revenue growth and the YoY profit decline, plus the subsidiary's swing to a loss, puts the focus on Q3 FY27: whether raw-material cost pass-through improves, whether Kohli Printing returns to profit, and whether the Southeast Asia partnership begins showing up in order inflow.