WH Brady's September quarter profit fell sharply from June, despite a trading segment revival. A steep drop in other income and a higher tax expense compressed margins, overshadowing steady rental income and year-on-year growth.
For WH Brady, a quarter of two halves saw a trading revival collide with a steep drop in non-operating income. The result was a sharp sequential profit decline, revealing how dependent recent earnings have been on one-off boosts.
Revenue of ₹18.1 crore was up 7.6% from a year ago but down 6.9% from the June quarter. Net profit of ₹1.36 crore rose 20.4% year-on-year but plunged 45.4% sequentially. The net profit margin fell 530 basis points from the prior quarter to 7.5%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
Metric
CurrentQ2 FY27 (Sep 2026)
PreviousQ1 FY27 (Jun 2026)
Revenue (₹ Cr)
18.1
19.44
Profit (₹ Cr)
1.36
2.49
Net Profit Margin (%)
7.5
12.8
Why the trading win didn't reach the bottom line
A report from scanx.trade shows the trading segment drove the year-on-year revenue gain, with revenue jumping sharply. The rental segment remained stable. Yet profit still fell from the prior quarter.
The culprit was a 59% sequential drop in other income to ₹1.34 crore. A scanx.trade analysis notes this non-operating income had surged a year ago, cushioning costs. Its sharp decline this quarter erased operating gains.
The costs that will not fall soon
A higher tax expense also bit into profits, rising over 400% year-on-year to ₹0.44 crore. This reflects a normalization from an unusually low tax charge of ₹0.09 crore in Q2 FY26.
Management has not provided explicit financial guidance for FY27, according to a Univest report. The outlook hinges on sustaining the trading segment's momentum and managing volatile other income.
Key Points
Net profit fell 45% quarter-on-quarter despite a 7.6% year-on-year revenue increase, as other income dropped sharply.
The trading segment showed a strong revival, but this was offset by a higher tax expense and lower non-operating income.
The company's net profit margin compressed to 7.5%, down from 12.8% in the prior quarter.
Operating cash flow turned positive for the half-year, per a scanx.trade report, offering some balance-sheet stability.
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Hexa Perspective
The quarter underscores WH Brady's earnings volatility. Profitability is susceptible to swings in other income, which fell back to a more normal level after a spike.
The core story is a modestly improving operating business, led by trading, facing a higher effective tax rate. For the improvement to last, the trading segment must sustain its growth to consistently offset these structural costs.
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Frequently asked questions
What were WH Brady's Q2 FY27 results?
WH Brady reported Q2 FY27 revenue of ₹18.1 crore, up 7.6% year-on-year. Net profit was ₹1.36 crore, a 20.4% increase from the same quarter last year but a 45.4% decline from the previous quarter (Q1 FY27).
Why did WH Brady's Q2 FY27 profit fall 45.4% sequentially?
WH Brady's Q2 profit fell sharply from Q1 primarily due to a 59% drop in other income, which was ₹1.34 crore compared to ₹3.26 crore. A higher tax expense also contributed to the sequential decline in profitability.
What caused the 530 bps sequential decline in WH Brady's net profit margin in Q2 FY27?
The margin decline was driven by a steep fall in other income and a higher tax outlay. Other income dropped ₹1.92 crore from the prior quarter, while the tax expense rose to ₹0.44 crore from ₹0.09 crore a year ago, squeezing the net profit margin to 7.5%.
Was the 66.5% YoY jump in other income for WH Brady in Q2 FY27 a one-off gain?
The year-on-year jump in other income appears non-recurring. It surged to ₹1.34 crore from ₹0.80 crore in Q2 FY26, but then fell sharply the next quarter. This volatility suggests it is not a stable source of earnings.
Which business segment drove WH Brady's Q2 FY27 performance?
The trading segment drove performance, according to a scanx.trade report. It showed a significant revenue revival, while the renting (leave & license) segment remained stable, contributing steady rental income.
Why did WH Brady's tax expense surge over 400% year-on-year in Q2 FY27?
WH Brady's tax expense rose to ₹0.44 crore from ₹0.09 crore in Q2 FY26. This surge represents a normalization from an unusually low base in the year-ago quarter, leading to a higher effective tax rate this period.
What guidance did WH Brady management provide for FY27?
According to a Univest report, WH Brady's management did not provide explicit financial guidance for FY27 during the Q2 results. The full-year outcome will depend on subsequent quarterly performance.
What is the status of WH Brady's order book?
The available research snippets and company filings reviewed do not disclose the current status of WH Brady's order book or backlog for its material handling equipment business for Q2 FY27.
What is WH Brady's cash flow situation as of Q2 FY27?
A scanx.trade report indicates WH Brady's cash position improved, with net cash flow from operating activities turning positive at ₹2.93 crore for the half-year ended September 2026, compared to ₹1.00 crore in the same period last year.
Did WH Brady's Q2 FY27 results beat analyst estimates?
The research reviewed does not contain specific analyst estimates for WH Brady's Q2 FY27 results, so a comparison to consensus forecasts cannot be made from the available information.
Have any brokerages changed their rating for WH Brady after the Q2 results?
The research snippets reviewed do not mention any brokerage rating or target price changes for WH Brady following the announcement of its Q2 FY27 results.
How did WH Brady's stock price react to the Q2 results?
The provided research does not detail the immediate stock price reaction of WH Brady & Company to its Q2 FY27 results announcement on November 3, 2026.
WH Brady & Company Q2 Results FY27
WH Brady & Company announced its Q2 FY27 results on November 3, 2026. Revenue was ₹18.10 crore and net profit (PAT) was ₹1.23 crore, representing year-on-year growth of 7.6% and 23%, respectively, according to a Univest report.
WH Brady Q2 profit drop
WH Brady's Q2 FY27 net profit dropped 45.4% sequentially to ₹1.36 crore from ₹2.49 crore in Q1 FY27. The decline was primarily due to a sharp fall in other income and a higher tax expense.
