Sat Kartar Life (SATKARTAR) Q2 FY27 Profit Dips 8% Even as Revenue Climbs 27%
The ayurvedic D2C firm posted strong year-on-year sales growth, but rising costs and a drop in other income squeezed quarterly profitability.
Sat Kartar Life's Q2 FY27 revenue jumped 26.6% year-on-year to ₹114 crore. However, net profit fell 8.2% sequentially to ₹9 crore as operating margins contracted and other income declined.
Sat Kartar Life’s second quarter shows a business growing fast but spending more to get there. Revenue from its ayurvedic products surged 26.6% over last year, yet profit slipped from the previous quarter as costs rose and other income fell.
The numbers tell a story of diverging trends. Year-on-year growth remains robust, but the sequential comparison reveals a squeeze.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ4 FY26 (Mar 2026) |
|---|---|---|
| Revenue (₹ Cr) | 114.0 | 110.62 |
| Profit (₹ Cr) | 9.0 | 9.8 |
| Net Profit Margin | 7.9% | 8.9% |
Revenue hit a new high of ₹114 crore, but profit at ₹9 crore was lower than the ₹9.8 crore earned in the March quarter. The net profit margin contracted by 100 basis points over that period.
Why the bottom line softened
The profit decline came from two sides. According to a Flash Finance analysis, operating profit fell 2.4% half-on-half, pulling the operating margin down by 70 basis points. At the same time, other income dropped sharply by 22.4%.
This points to rising costs in the core D2C business, where digital advertising can consume 40-42% of revenue. The company’s cash flow statement underscores the strain, with H1 FY27 cash from operations reported at a negative ₹6.9 crore.
The growth engine remains active
Despite the margin pressure, the top-line momentum is clear. The 26.6% annual growth aligns with management’s aggressive targets. A report on Equitybulls noted the company reported 26% revenue growth for the first half.
This growth is fueled by the core ayurvedic products segment, where demand in India’s D2C market remains strong. The company is also expanding its asset-heavy hospital network, with new therapy centres announced for Gurugram and Dehradun.
A capital-intensive transition
The shift from a pure-play D2C model to building hospitals marks a strategic pivot. Management has guided for capital expenditure of ₹10-15 crore in FY27 for land and development, funded by a recent ₹48.6 crore preferential issue and internal accruals.
This expansion aims for 300 hospital beds by FY27, but it introduces execution risk and upfront costs. The first 30-bed facility in Delhi opened in March 2026 and is reportedly operating below its daily break-even revenue.
Key Points
- Revenue grew 26.6% year-on-year to ₹114 crore, but quarterly profit fell 8.2% to ₹9 crore.
- Profitability was squeezed by a decline in both operating profit and other income, as per a Flash Finance report.
- The company is transitioning, using raised capital to fund an expansion into ayurvedic hospitals and therapy centres.
- Negative operating cash flow of ₹6.9 crore for H1 FY27 highlights working capital intensity amid growth.
- The stock trades at a P/E of 12.7, a significant discount to the industry average of 35.8.
Hexa Perspective
Sat Kartar Life is caught between two narratives. The D2C product business is delivering impressive sales growth, yet it carries high and persistent customer acquisition costs that limit profit conversion.
The new hospital strategy promises higher margins but demands significant capital and operational execution. Investors are weighing the growth potential against the cash burn and the challenge of scaling a physical healthcare network. The wide valuation discount to peers reflects this uncertainty.
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