MSTC Q2 FY27: consolidated PAT surges 58% YoY to ₹74.9 Cr, margins expand further

MSTC's consolidated profit after tax for Q2 FY27 (quarter ended September 30, 2026) rose 57.7% YoY to ₹74.92 Cr (₹47.50 Cr in Q2 FY26) and 28.7% QoQ (₹58.22 Cr in Q1 FY27) — its second straight record quarter after Q1 FY27's high. Revenue from operations grew 29.4% YoY and 16.8% QoQ to ₹110.02 Cr, taking total income (with other income of ₹29.19 Cr) to ₹139.21 Cr. Standalone PAT of ₹74.61 Cr sits within 0.4% of the consolidated number — the Mahindra MSTC Recycling joint venture added just ₹0.31 Cr to consolidated PBT this quarter — so basis makes little difference to the headline. Basic consolidated EPS was ₹10.64 for the quarter versus ₹8.27 QoQ and ₹6.75 YoY. There were no exceptional items in either the current or year-ago quarter, so reported growth is also the underlying growth; no adjustment is needed.

The growth came with margin expansion on both lines: operating margin (EBITDA on revenue from operations, excluding other income) rose to 67.2% from 61.3% QoQ and 60.6% YoY, while net margin (PAT on total income) rose to 53.8% from 49.3% QoQ and 46.4% YoY. Employee costs (₹24.39 Cr) and other operating expenses (₹11.75 Cr) grew slower than revenue — the main source of the operating leverage — while finance costs stayed negligible (₹0.01 Cr) and depreciation was broadly flat sequentially. The joint venture also swung to a ₹0.31 Cr profit contribution from a ₹1.65 Cr loss a year earlier, a modest tailwind to the consolidated-over-standalone bridge.

The stock went into the print at ₹654.6, down 3.4% over the past month of trading.

Against the only guidance on record — management's target of "sustained double-digit revenue growth" from the Q1 FY27 call — 29.4% YoY revenue growth is a clear beat. That same call flagged the TReDS platform's FY27 operationalization as "pending RBI approval"; this result's cover letter notes the RBI granted in-principle authorisation for MSTC to set up and operate a Trade Receivables Discounting System (letter dated/received November 11, 2026) — a concrete step forward, though actual launch still depends on meeting conditions in that letter. The EPR exchange initiative, also flagged last quarter as awaiting government notification, saw no update this quarter. There is no analyst consensus or brokerage preview available for MSTC to benchmark this print against, and the company issued no separate press release with this result, so there is no outside management framing to reconcile against the numbers beyond the filing itself. Two governance/structural items from the quarter are context rather than performance drivers: the Director (Commercial) retired effective November 2, 2026, with the CMD taking additional charge, and the Board decided to discontinue the BG-backed procurement business under the Marketing division with effect from FY2026-27 — segmental reporting has accordingly been dropped from this filing.