Saven Technologies (7TEC) Q2 FY27 Posts Strong Q2 Profit on Operating Leverage
The IT services firm's net profit rose 34% year-on-year to ₹1.03 crore, with margins expanding sharply as revenue growth outpaced costs.
Saven Technologies delivered robust Q2 FY27 results, with profit jumping 37% sequentially. The improvement was driven by operating leverage, as revenue growth of 11% outpaced a 6% rise in total expenses.
For a small IT services firm, a quarter of strong sequential growth often signals project execution and client traction. Saven Technologies delivered just that, with profit surging past revenue growth as operational efficiency improved.
Revenue for the September quarter rose 15% year-on-year to ₹5.41 crore. Profit jumped 34% to ₹1.03 crore. The more telling move was sequential: profit grew 37% on an 11% revenue increase, pushing the net profit margin to 19%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 5.41YoY +15% | 4.86 | 4.71 |
| Profit (₹ Cr) | 1.03YoY +34% | 0.75 | 0.77 |
| Net Profit Margin | 19.0%YoY +17% | 15.5% | 16.3% |
The Efficiency Behind the Jump
The margin expansion came from operating leverage. According to a scanx.trade report, total expenses grew only 6% year-on-year, well below the revenue growth rate. This suggests better utilization of existing resources as project volumes increased.
Employee costs, the largest expense, did rise year-on-year, reflecting ongoing investment in talent. However, the pace of increase was contained. The profit surge was driven by core operations, with Flash Finance noting that 90% of pre-tax profit came from the main business.
A Half-Year Reality Check
The strong quarterly print sits against a softer half-year picture. For the six months ended September, net profit declined to ₹1.78 crore from ₹2.13 crore a year ago. Scanx.trade attributes this entirely to a sharp drop in other income, which fell to ₹0.24 crore from over ₹1 crore last year.
This highlights that the year-ago period was flattered by high non-operational income. The current quarter’s growth is thus a cleaner reflection of operating performance, even as it sets a higher base for future comparisons.
The Working Capital Trade-Off
Growth came with a visible strain on cash collection. Trade receivables surged 31% since March 2026, far outpacing half-year revenue growth of 11%. This suggests the company may be extending credit to secure or retain business.
Consequently, cash generated from operations for the half-year fell to ₹1.03 crore from ₹2.33 crore a year ago. The firm remains debt-free with a strong cash balance, but the receivables build-up is a watchpoint for liquidity.
Key Points
- Net profit grew 37% quarter-on-quarter to ₹1.03 crore, significantly outpacing 11% revenue growth due to operating leverage.
- The year-on-year profit increase of 34% is a cleaner measure than the half-year decline, which was distorted by a steep fall in other income.
- A 31% jump in trade receivables since March indicates potential collection pressure, offsetting strong operational cash generation.
- The company maintains a robust, zero-debt balance sheet with a cash balance of over ₹5.6 crore.
Hexa Perspective
The quarter shows Saven Technologies can deliver operating leverage when project flow is strong. The 19% net margin is a multi-quarter high and well above the trailing twelve-month average of 15.4%.
The sustainability of this margin hinges on whether the receivables surge is a one-quarter working capital blip or a structural shift to win business. In a sector where larger peers like Infosys are guiding for muted growth, the firm's ability to maintain this sequential momentum will be tested.
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