Shivamshree Business (SBL) Q2 FY27: Revenue Plummets 56% as Losses Mount
A sharp drop in sales and a swing to an operating loss defined a difficult quarter for the dairy and solar distributor.
Shivamshree Business saw revenue fall 56% year-on-year to ₹1.85 crore, while its net loss widened to ₹0.38 crore. The company is investing heavily in solar and manufacturing expansion, but current operations are under pressure.
For Shivamshree Business, a company building a future in solar power and industrial bags, the present quarter proved challenging. Revenue from its core trading operations fell by more than half, and a small profit from the previous quarter swung back into a loss.
The numbers tell a story of contraction. Revenue for Q2 FY27 was ₹1.85 crore, down 56% from the same quarter last year and 30% from the June quarter. Net loss widened to ₹0.38 crore, a significant reversal from the ₹0.04 crore profit posted in Q1. The net profit margin fell deep into negative territory at -20.6%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1.85YoY -56% | 2.65 | 4.22 |
| Profit (₹ Cr) | -0.38YoY -1167% | 0.04 | -0.03 |
| Net Profit Margin (%) | -20.6YoY -2475% | 1.5 | -0.8 |
Where did the sales go?
The sharp revenue decline points to a slowdown in the company's primary business lines. According to a segment breakdown from Equifiz, the manufacturing of industrial bags, which contributed 99.4% of revenue in a recent period, saw a massive surge last year. This suggests the current quarter may reflect a normalization from that high base or a pause in order flow.
The cost of building tomorrow
While current sales faltered, spending on the future accelerated. FlashFinance reported that capital work-in-progress surged to ₹17.02 crore as of September 30, 2026, more than doubling from March. This is tied to expansion in solar and FIBC bag manufacturing. The funding for this growth is visible on the balance sheet: borrowings jumped 196% since March 2026 to over ₹20 crore.
This heavy investment, combined with weak sales, crushed profitability. The company's operating margin contracted by 1,527 basis points year-on-year, swinging to a loss, as reported by FlashFinance. With revenue low, fixed costs and interest expenses weighed heavily, leading to the deeper net loss.
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· SBL
(BSE)
ISIN: INE857P01021
The six-month picture shows a net loss of ₹0.34 crore on revenue of ₹4.5 crore, as per Marketscreener. The trailing twelve-month net profit margin stands at 2.4%, but the current quarter's performance is a stark departure from that trend.
Key Points
- Revenue fell sharply by 56% year-on-year and 30% sequentially to ₹1.85 crore.
- The company swung to a net loss of ₹0.38 crore from a profit in the prior quarter, with the net profit margin plunging to -20.6%.
- Capital expenditure is ramping up aggressively, with work-in-progress more than doubling to ₹17.02 crore, funded by a 196% rise in borrowings.
- Operating performance weakened significantly, with the operating margin turning negative amid the sales decline.
Hexa Perspective
This quarter presents a clear tension between a struggling present and a costly bet on the future. The core trading and manufacturing business has hit a air pocket, with revenue back near levels seen two years ago. Meanwhile, the balance sheet is being leveraged to fund a substantial expansion.
The investment case now hinges on whether these new solar and manufacturing capacities can be commissioned and start generating revenue before the strain from higher debt and operating losses becomes unsustainable. Investors are essentially funding a transition, with current operations offering little support.
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