Skyline Millars (SKYLMILAR) Q2 FY27 Returns to Profit as Costs Plummet
Skyline Millars posted a Q2 FY27 net profit of ₹0.05 crore, a turnaround from a loss a year ago, but revenue fell 29% as a key project remains stalled.
Skyline Millars swung to a quarterly profit of ₹0.05 crore in Q2 FY27, driven by a sharp 64% cut in construction costs. However, revenue declined 29% year-on-year amid ongoing legal delays at its Ghatkopar project.
For Skyline Millars, a real estate developer with a long-stalled flagship project, the path to profitability has been one of severe cost-cutting rather than sales growth. The company's second quarter saw it post a slim net profit of ₹0.05 crore, a welcome turnaround from a ₹0.23 crore loss a year earlier. Yet this profit arrived alongside a 29% drop in revenue, underscoring a business still waiting for its core operations to restart.
The numbers reveal a stark trade-off. Revenue from operations stood at ₹0.5 crore, down from ₹0.7 crore in Q2 FY26. Sequentially, it jumped from a near-zero base of ₹0.03 crore in the prior quarter. The profit, however, was entirely driven by expense control. According to a scanx.trade report, total expenses halved year-on-year to ₹49.55 lakh, with construction costs plunging 64%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Period | Sep 2026 | Jun 2026 | Sep 2025 |
| Revenue (₹ Cr) | 0.50YoY -29% | 0.03 | 0.70 |
| Profit (₹ Cr) | 0.05YoY +122% | -0.28 | -0.23 |
| Net Profit Margin (%) | 10.0YoY +131% | – | -32.7 |
The engine of profit: deep cost cuts
The dramatic 4,270 basis-point swing in net profit margin, from -32.7% to 10%, was not a sign of operational strength. Flashfinance.news analysis noted that a significant 87% of the pre-tax profit came from other income and one-off items, suggesting the core business contribution was minimal. The real driver was a strategic, or perhaps enforced, pullback in project activity. With its main Ghatkopar development frozen since 2011 awaiting a Supreme Court decision, the company has slashed its cost of construction and other expenses.
Cash flow tells a different story
While the P&L showed a profit, the cash flow statement painted a picture of capital being locked away. For the first half of FY27, net cash used in operating activities was ₹1.05 crore, as reported by scanx.trade. The primary reason was a ₹1 crore increase in inventories. This buildup of unsold or under-construction assets ties up capital without generating immediate revenue, a tension that limits financial flexibility.
The outlook hinges on a court verdict
The company's future is not in its hands. Management has consistently noted its inability to launch the next phase at Ghatkopar due to the pending Supreme Court matter. In its annual report, cited by news.tulsian.ai, the company stated it awaits approvals for this project, which is "expected to bring significantly enhanced revenue and profits." Until that legal logjam breaks, the business model remains one of managing a dwindling asset base and minimizing costs, not driving growth.
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· SKYLMILAR
(BSE)
ISIN: INE178E01026
Key Points
- Skyline Millars reported a net profit of ₹0.05 crore in Q2 FY27, a positive swing from a loss of ₹0.23 crore in the same quarter last year.
- The profit was driven by a 50% year-on-year reduction in total expenses, with construction costs falling 64%, as detailed in a scanx.trade report.
- Revenue from operations declined 29% year-on-year to ₹0.5 crore, reflecting the ongoing stagnation from a key stalled project.
- Operating cash flow remained negative for H1 FY27 at -₹1.05 crore, with capital heavily tied up in rising inventory.
- The company's operational revival is contingent on a Supreme Court resolution for its Ghatkopar project, which has been delayed since 2011.
Hexa Perspective
Skyline Millars' quarter is a story of financial engineering over business momentum. The return to profit is a technical achievement born of drastic cost containment, not a sign of underlying demand or project execution. The quality of earnings is low, with most profit coming from non-core sources.
The path forward is binary. The company possesses land assets and projects like Karjat, but its fate is levered to a single external event: the Supreme Court's decision on Ghatkopar. Investors are effectively holding an option on that legal outcome. Until it resolves, the company's financials will likely continue to show this pattern of minimal revenue, managed costs, and poor cash conversion.
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