Sumit Woods (SUMIT) Q2 FY27 Profit Crashes 74% Despite Revenue Tripling
A massive revenue surge from a low base was overshadowed by a sharp quarterly profit drop, as costs rose and a key income source vanished.
Sumit Woods' Q2 FY27 revenue tripled year-on-year to ₹36.65 crore, but profit plunged 74.5% sequentially to ₹1.03 crore. The sharp margin contraction highlights the volatile nature of project-based revenue recognition.
For Sumit Woods, the September quarter was a story of two extremes. Revenue soared from a weak year-ago base, yet profitability collapsed from the prior quarter, revealing the lumpy nature of real estate earnings.
The numbers show a business in flux. Revenue of ₹36.65 crore was up 186% from a year ago, but down 19% from the June quarter. Profit fell even harder, dropping 74.5% sequentially to ₹1.03 crore. The net profit margin compressed to 2.8%, down 610 basis points from Q1.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 36.65YoY +186% | 45.18 | 12.82 |
| Profit (₹ Cr) | 1.03YoY +415% | 4.04 | 0.20 |
| Net Profit Margin (%) | 2.8YoY +87% | 8.9 | 1.5 |
Where the profit vanished
The profit drop stemmed from a one-two punch of higher costs and vanishing other income. Other income collapsed 90% quarter-on-quarter to just ₹0.20 crore, according to the results statement.
This removed a ₹2 crore cushion that had flattered the prior quarter's profit. At the same time, depreciation more than doubled and interest expense rose 17% sequentially, as noted in the filing analysis by Flash Finance.
A pipeline of promise and pressure
While the quarter was weak, the future holds a significant promise. Just days before the results, Sumit Woods registered a ₹695 crore redevelopment project in Mumbai's Borivali, as reported by ALFA News.
This adds to a total project pipeline now worth approximately ₹3,362 crore. Such a large order book provides visibility but also demands funding. Borrowings rose 37% since March 2026, per Flash Finance, indicating the capital needed to execute.
The market's immediate reaction was muted, with the stock down 6.3% since the results were filed. The company's trailing-twelve-month net profit margin of 6.1% is now under pressure from rising finance and depreciation costs.
Key Points
- Revenue growth of 186% year-on-year was against a very low base in Q2 FY26, while sequential revenue declined 19%.
- Net profit fell 74.5% quarter-on-quarter, driven by a 90% drop in other income and a sharp rise in depreciation and interest costs.
- The company's project pipeline has swelled to ~₹3,362 crore with a new ₹695 crore deal, but borrowings are rising to fund execution.
- Operating cash flow remained negative in H1 FY27, highlighting the working capital intensity of the business model.
Hexa Perspective
This quarter underscores the execution challenge ahead. Revenue recognition will remain volatile, tied to project milestones. The margin squeeze from higher interest and depreciation is a structural shift as the company gears up its balance sheet for growth.
The large order book is a clear positive, but its conversion into steady, profitable revenue is the test. Investors are weighing the promise of the pipeline against the reality of rising leverage and inconsistent quarterly earnings. The next few quarters will show if top-line momentum can translate into bottom-line stability.
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