Hawa Engineers Q2FY27 Results: Net profit rises 8% YoY to ₹57 lakh
- Net profit rose 8.1% YoY to ₹57.02 lakh in Q2FY27
- Revenue from operations declined 33.6% YoY to ₹20.93 crore
- Profit before tax increased 22.9% YoY to ₹82.02 lakh
- Trade receivables reduced to ₹20.13 crore from ₹25.26 crore in FY26
*this image is generated using AI for illustrative purposes only.
Hawa Engineers Ltd reported a net profit of ₹57.02 lakh for the quarter ended September 30, 2026 (Q2FY27), marking an 8.1% increase year-on-year from ₹52.73 lakh in the corresponding period of the previous fiscal year.
Despite the profit growth, the Ahmedabad-based industrial valve manufacturer witnessed a significant contraction in top-line performance. Revenue from operations stood at ₹20.93 crore for the quarter, down 33.6% from ₹31.53 crore recorded in Q2FY26. The half-year figures for H1FY27 also reflected this downward trend, with revenue falling to ₹44.69 crore from ₹56.52 crore in H1FY26.
Financial Performance Snapshot
The company’s profitability improved despite lower sales volumes, driven by cost management and operational efficiencies. Below is the detailed breakdown of the key financial metrics for the quarter and half-year periods.
| Metric | Q2FY27 (₹ lakh) | Q2FY26 (₹ lakh) | Change (%) | H1FY27 (₹ lakh) | H1FY26 (₹ lakh) |
|---|---|---|---|---|---|
| Revenue from Operations | 2,092.76 | 3,152.71 | -33.6% | 4,468.60 | 5,651.79 |
| Other Income | 18.58 | -1.14 | N/A | 37.63 | 11.21 |
| Total Income | 2,111.35 | 3,151.57 | -33.0% | 4,506.23 | 5,663.00 |
| Total Expenses | 2,029.32 | 3,084.84 | -34.2% | 4,353.40 | 5,526.93 |
| Profit Before Tax | 82.02 | 66.73 | +22.9% | 152.83 | 136.07 |
| Net Profit After Tax | 57.02 | 52.73 | +8.1% | 102.83 | 105.97 |
| EPS (Basic, ₹) | 1.62 | 1.50 | +8.0% | 2.92 | 3.01 |
Note: Figures are in Lakhs as per the standalone unaudited financial results.
What the Numbers Show
A distinct divergence emerged between revenue trends and margin expansion. While revenue contracted sharply by 33.6% YoY, total expenses fell by a steeper 34.2%, allowing the operating profit before tax to rise 22.9%. This suggests that the reduction in variable costs, particularly materials consumed (down 33.8% YoY), outpaced the decline in sales, thereby protecting margins.
Furthermore, the balance sheet indicates a strengthening liquidity position alongside reduced working capital intensity. Trade receivables decreased significantly to ₹20.13 crore from ₹25.26 crore as of March 31, 2026, while cash and cash equivalents remained robust at ₹14.60 crore. However, net cash flow from operating activities turned negative at ₹77.99 lakh for the six-month period, primarily due to a substantial outflow related to trade and other payables (₹648.61 lakh reduction).
Board Approval and Auditor Review
The Board of Directors approved the unaudited standalone financial results during its meeting held on October 3, 2026, at the company’s registered office in Ahmedabad. The statutory auditors, Yusuf C. Mansuri & Co., issued an unmodified conclusion on the results, confirming they were prepared in accordance with Ind AS 34 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company operates under a single reportable segment, Industrial Valves, and continues to maintain ISO certifications for quality, environmental, and occupational health and safety management systems.
Historical Stock Returns for Hawa Engineers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.10% | +1.99% | +6.08% | +26.63% | -32.78% | +51.11% |
What specific end-market demand shifts or order book delays are driving the 33.6% contraction in revenue from operations?
How sustainable are the current margin expansions given the sharp decline in top-line revenue and reduced operating cash flows?
What is the company's strategy to address the negative operating cash flow caused by the significant reduction in trade payables?
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