Rama Vision (RAMAVISION) Q2 FY27 Profit Jumps 50% but Cash Flow Turns Negative
Rama Vision's Q2 FY27 revenue surged 47% YoY, yet a sharp rise in trade receivables led to negative operating cash flow, highlighting a working capital strain.
Rama Vision reported a 50.3% jump in net profit for Q2 FY27 on robust revenue growth. However, the strong top-line performance was overshadowed by a significant cash outflow as receivables ballooned, pressuring working capital.
For a distributor like Rama Vision, growth is measured not just in sales but in the cash that follows. The September quarter delivered a powerful top-line surge, but the cash register tells a different story.
Revenue climbed to ₹59.6 crore, a 46.8% leap from last year. Net profit grew even faster, rising 50.3% to ₹2.45 crore. This marks the fourth consecutive quarter of rising revenue.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 59.57YoY +47% | 51.42 | 40.57 |
| Profit (₹ Cr) | 2.45YoY +50% | 2.09 | 1.63 |
| Net Profit Margin | 4.1%YoY +2.5% | 4.1% | 4.0% |
Why margins stayed flat
Profit growth barely outpaced sales, leaving the net margin at 4.1%. A report from scanx.trade notes that total expenses rose nearly in lockstep with revenue, up 46.3% year-on-year. Employee and other costs climbed sharply to support the sales expansion, absorbing much of the operating leverage.
The cash flow divergence
Here lies the quarter's tension. While revenue expanded, operating cash flow turned negative. According to scanx.trade, this was due to a ₹1,220.68 lakh outflow from rising trade receivables, which nearly doubled since March. The sales growth has not yet converted into cash, pressuring working capital.
The new wafer stick manufacturing unit in Kashipur, however, is a bright spot. It contributed ₹3.64 crore in revenue and turned a segment profit, signaling a successful operational turnaround from a loss a year ago.
Key Points
- Revenue grew 46.8% YoY to ₹59.57 crore, continuing a four-quarter growth streak.
- Net profit increased 50.3% to ₹2.45 crore, but margins remained thin at 4.1% as costs rose in tandem.
- Operating cash flow turned negative due to a sharp increase in trade receivables, highlighting a working capital stretch.
- The new manufacturing segment turned profitable, contributing ₹3.64 crore in revenue.
Hexa Perspective
The quarter presents a classic scale-versus-cash trade-off. The revenue momentum is clear and supported by a profitable new manufacturing line. Yet, the ballooning receivables mean this growth is being funded by the company's own balance sheet. For the trajectory to be sustainable, the coming quarters must show this sales surge translating into actual cash inflows. Until then, the impressive top-line numbers come with a working capital cost that investors are weighing against the growth story.
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