Prabha Energy Ltd Q2 FY27 Results

Prabha Energy Limited (CBM gas producer operating the North Karanpura block) reported consolidated revenue from operations of ₹1.44 Cr for Q2 FY27 (quarter ended September 30, 2026), down 18.6% year-on-year from ₹1.77 Cr and down 14.8% sequentially from ₹1.69 Cr in Q1 FY27. Net profit came in at ₹0.32 Cr, a turnaround from a ₹0.19 Cr loss in the year-ago quarter and up 9.3% from ₹0.29 Cr in Q1 FY27; basic EPS was flat at ₹0.02. Standalone and consolidated figures are identical this quarter, as the US subsidiary Deep Energy LLC again reported nil revenue and nil profit.

The headline swing to profit was not driven by operations. Core operating profitability — revenue less cost of materials, employee cost and other expenses — was just ₹0.02 Cr, an operating margin of roughly 1.1%, down sharply from 19.1% in Q1 FY27 even as it improved from -17.1% a year ago. The bottom line instead leaned on ₹0.24 Cr of other income and a ₹0.15 Cr deferred-tax credit (against a ₹0.04 Cr tax charge last quarter); net profit margin on total income rose to 19.1% from 16.4% in Q1 FY27, but that expansion is a tax-and-other-income effect, not a cost or pricing improvement. Depreciation stayed low (₹0.02 Cr) because, per Note 4 of the filing, expenditure on the NK-block wells is being capitalised rather than depreciated while they remain in the testing/early-production phase — gas sold during this phase is booked as revenue, but depletion will only begin once reserves are confirmed as proved and developed.

The stock went into the print at ₹197.95, down 10.6% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 2 consecutive quarters.

We found no analyst coverage or consensus estimates for Prabha Energy, so the print cannot be benchmarked against the Street, and the company has issued no formal revenue or margin guidance on record — our database and a web search both came up empty, beyond general commentary that the North Karanpura ramp-up (68 of 74 planned wells drilled as of the last available update) is progressing within budgeted capex. No management press release accompanied this filing, so there is no fresh management commentary to reconcile against the numbers. The quarter's corporate actions were dominated by the company's capital raise: partly-paid rights-issue shares were converted to fully paid in stages (9.5 million shares on August 24, a further 109,974 on October 19), paid-up capital rose to ₹14.65 Cr, and proceeds funded a sharp reduction in non-current borrowings to ₹62.71 Cr from ₹155.30 Cr at FY26-end — alongside a trading-window closure (September 22) and a clarification on share-price fluctuation (August 21) that point to active investor attention through the raise.