Augmont Enterprises Q2 FY27 Profit Climbs 6.8% To ₹120 Crore Despite Sharp Decline In Total Income, Consumer Business Shines With 47.3% Revenue Growth As EBITDA Jumps 16% To ₹181 Crore

Mumbai: Augmont Enterprises saw a 6.8% rise in its profit after tax to ₹120 crore in the second quarter of FY27, even as its total income dipped. The precious metals firm showcased a robust operation performance, driven by increased consumer business and a new gold sourcing strategy. Augmont Enterprises' consolidated total income for Q2 FY27 was ₹15,852 crore, down from ₹21,754 crore in the same quarter last year.

The company's revenue from operations in Q2 FY27 stood at ₹15,836 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 16% year-on-year to ₹181 crore. The growth in EBITDA suggests better operating earnings, despite a fall in overall business volumes in the enterprise segment. The enterprise business' revenue was ₹13,852 crore, a 32% decline compared to the same period last year.

However, the consumer business showed strong growth, with revenue rising 47.3% to ₹1,984 crore, contributing to around 12.5% of total quarterly revenue. This shift in revenue composition indicates a change in the company's focus. Augmont Enterprises boosted its reliance on domestic scrap sourcing in Q2 FY27, with domestic scrap making up 24.5% of total procurement, compared to around 3% in the same quarter last year.

This major change in procurement strategy was reportedly beneficial for the company's margins, although it involved a longer working capital cycle. Whole-time Director Ketan Kothari acknowledged the impact of the sourcing transition on margins but highlighted the improved operating earnings. Looking ahead, investors will focus on consumer demand, enterprise revenue, procurement costs, and working capital requirements.

The company's ability to maintain margins while managing its sourcing strategy will be crucial for future performance.