Mahindra EPC Irrigation Limited reported a sharp recovery in profitability for the second quarter of fiscal 2027, with net profit rising to ₹2.23 crore from ₹0.43 crore in the corresponding period last year.

Revenue from operations grew 46.5% YoY to ₹72.65 crore, driven by strong demand in precision farming products. This top-line expansion helped the company swing from a loss of ₹2.14 crore in Q1FY27 to a net profit in Q2FY27, marking a significant sequential improvement.

Financial Performance Highlights

The company's standalone results for the quarter ended September 30, 2026, show robust growth across key metrics compared to the previous year. The surge in revenue was accompanied by better operating leverage, despite higher costs of materials consumed.

What the Numbers Show

A notable divergence exists between the half-year performance and the quarterly trend. While Q2FY27 was strong, the cumulative profit for H1FY27 stood at just ₹0.09 crore, down significantly from ₹1.41 crore in H1FY26. This indicates that the first quarter's loss of ₹2.14 crore heavily weighed on the half-year totals, masking the strong momentum seen in Q2. Additionally, cost of materials consumed rose sharply to ₹40.12 crore in Q2FY27 from ₹21.57 crore in Q2FY26, growing faster than revenue and compressing gross margins, although other expenses remained relatively stable.

Balance Sheet and Cash Flow

The company's balance sheet reflects improved liquidity and working capital management. Trade receivables decreased to ₹192.21 crore as on September 30, 2026, from ₹216.92 crore as on March 31, 2026, aiding cash flow generation. Net cash generated from operating activities turned positive at ₹5.17 crore for the six months ended September 30, 2026, compared to a negative outflow of ₹10.34 crore in the same period last year.

• Cash Position: Cash and cash equivalents increased to ₹0.53 crore from ₹0.03 crore at the start of the fiscal year.
• Debt: Short-term borrowings reduced slightly to ₹43.15 crore from ₹45.21 crore as on March 31, 2026.
• Investments: Capital expenditure on property, plant, and equipment stood at ₹1.03 crore for the half-year period.

Mahindra EPC Irrigation Limited reported a net loss of ₹2.14 crore for the quarter ended June 30, 2026 (Q1FY27), reversing from a net profit of ₹0.98 crore in the same period last year. Total income for the quarter declined to ₹54.46 crore from ₹62.17 crore in Q1FY26. The company’s basic and diluted earnings per share (EPS) stood at -0.77, compared to 0.35 in the prior year period.

The Board of Directors, at its meeting held on July 16, 2026, approved the unaudited standalone and consolidated financial results. The results were reviewed by the Audit Committee and filed with the stock exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, B S R & Co. LLP, issued an unmodified review conclusion on the results.

Board Appointments

In addition to the financial results, the Board appointed Mr. Vimal Agarwal as the Internal Auditor for a period of three years effective July 16, 2026. Mr. Rajeev Goyal was appointed as the Chairman of the Board with effect from July 16, 2026. Mr. Goyal, a Non-Executive Non-Independent Director, is the CFO of the Auto & Farm Sectors of the Mahindra Group.

Financial Performance

The company’s net profit before tax for the quarter was a loss of ₹2.85 crore, compared to a profit of ₹1.31 crore in Q1FY26. For the full year ended March 31, 2026, the company reported a net profit of ₹12.69 crore on a total income of ₹315.79 crore. Reserves as per the balance sheet of the previous accounting year stood at ₹157.11 crore.

Key Financial Metrics

The paid-up equity share capital of the company remained stable at ₹27.95 crore for the quarter ended June 30, 2026, with a face value of ₹10 per share. The total comprehensive income for the period also reflected a loss of ₹2.14 crore for the quarter.