SAR Auto Products Q2 FY27: PAT soars 267% YoY, revenue more than doubles, NPM to 8.4%

Revenue from operations came in at ₹5.84 Cr for the quarter ended September 30, 2026, up 142% YoY from ₹2.41 Cr and 9.5% QoQ from ₹5.33 Cr, standalone (the company files no consolidated statement — a single entity with no subsidiaries). PAT was ₹0.51 Cr, up 267% YoY from ₹0.14 Cr and 38% QoQ from ₹0.37 Cr. Basic EPS (not annualised) was ₹1.08 versus ₹0.29 a year ago and ₹0.78 last quarter. There were no exceptional items in either period, so the growth is on a like-for-like basis — but given how small the base is (revenue a year ago was just ₹2.41 Cr), the percentage swings are large by arithmetic and shouldn't be read as a steady-state growth rate for this precision-components manufacturer. Net profit margin (PAT/total income) expanded to 8.37% from 5.19% YoY and 6.56% QoQ. On an EBITDA-ex-other-income basis, operating margin was 16.08% — well up from 12.64% in Q1 FY27 but marginally below the 17.59% recorded a year ago; the YoY softness here traces entirely to other income shrinking to 4.9% of revenue from 11.7% a year earlier as the operating base grew faster than treasury income. PBT margin, which captures the full P&L, actually expanded YoY (5.79% to 8.78%). No tax was charged in the quarter — the company provides for tax only at year-end (Note 5) — so PAT equals PBT in every quarterly column shown, a consistent convention across all comparison periods, not a one-off boost to this quarter specifically. There is no analyst coverage or consensus estimate on record for this micro-cap (paid-up equity capital of just ₹4.76 Cr); a web search for Q2 FY27 previews returned only estimates for the similarly-ticked but unrelated NYSE-listed Standard Motor Products, underscoring the absence of genuine sell-side tracking — vsStreet is unknown. Management has issued no prior guidance or concall commentary in our records, and this filing (a standard SEBI board-outcome letter plus financial statements) carries no separate press release or MD&A, so there is nothing to grade the print against on either front. Ahead of the results, promoter Shreyas R Virani sold a cumulative ~1.5% stake (disclosed September 25-26, 2026) and the company appointed Harsh Mukeshbhai Raidya as an independent director (approved at the AGM on September 29, 2026); the trading window was closed around results as usual. Neither bears directly on the P&L, but both are on record as the quarter's governance developments. The quarter's profit is not yet mirrored in cash generation: H1 FY27 operating cash flow was negative ₹6.44 Cr (versus positive ₹0.41 Cr in H1 FY26) as inventories climbed to ₹7.90 Cr from ₹3.62 Cr at the March 2026 year-end, funded largely by a rise in short-term borrowings to ₹33.42 Cr from ₹25.29 Cr. That inventory build could reflect positioning for the revenue run-rate just printed, but it's the item to watch next quarter — whether it converts to sales and cash or sits as a balance-sheet drag.