Prostarm Info Systems Posts Q2 Revenue Of ₹120 Crore While Net Profit Drops To ₹6.07 Crore

Market snapshot: Prostarm Info Systems Limited reported an 82% YoY increase in Q2 consolidated revenue to ₹120 crore, driven by robust top-line expansion. However, profitability contracted as consolidated net profit fell 26.6% YoY to ₹6.07 crore due to operational margin compression.

Data Snapshot

• Consolidated Q2 revenue reached ₹120 crore compared to ₹65.92 crore in the prior-year period.
• Consolidated Q2 net profit fell to ₹6.07 crore from ₹8.27 crore YoY.
• Q2 EBITDA decreased to ₹9.35 crore from ₹11.21 crore YoY.
• EBITDA margin contracted by 922 bps YoY to 7.79% from 17.01%.

What's Changed

• Revenue increased by ≈82% YoY to ₹120 crore from ₹65.92 crore (derived: ₹120 cr vs ₹65.92 cr).
• Net profit declined by ≈26.6% YoY to ₹6.07 crore from ₹8.27 crore (derived: ₹6.07 cr vs ₹8.27 cr).
• EBITDA margin compressed by 922 bps to 7.79% from 17.01% YoY.

Key Takeaways

• Top-line expansion remained robust with Q2 revenue reaching ₹120 crore.
• Operating profitability faced headwinds, resulting in absolute EBITDA decreasing to ₹9.35 crore despite higher revenue.
• Margin contraction of 922 bps indicates elevated input costs or shifts in business segment mix during the quarter.

SAHI Perspective

Prostarm Info Systems displays solid demand momentum across its power solution offerings, reflected in significant revenue growth. However, the drop in EBITDA margin from 17.01% to 7.79% highlights cost inflation or lower-margin execution challenges that weigh on net profitability.

Market Implications

Market participants will likely focus on the margin compression rather than top-line growth alone. Sustainable earnings recovery will depend on cost control initiatives and stabilizing operating margins.

Trading Signals

Market Bias: Neutral

Strong top-line expansion to ₹120 crore is counterbalanced by a 26.6% YoY net profit decline to ₹6.07 crore and significant EBITDA margin contraction to 7.79%, creating a balanced near-term operational stance.

Overweight: Power Conditioning Solutions, Energy Storage Systems

Underweight: High-Input-Cost Capital Goods

Trigger Factors:

• Sequential recovery in EBITDA margin above 10%
• Management commentary on raw material cost stabilization
• Updates on commercialization of Battery Energy Storage System (BESS) initiatives

Time Horizon: Near-term (0-3 months)

Industry Context

India's power conditioning and energy storage market continues to expand due to industrial automation and clean energy infrastructure growth, though raw material volatility and pricing pressures present operational hurdles.

Key Risks to Watch

• Further degradation in EBITDA margins if input costs remain elevated
• Working capital pressures stemming from rapid scale-up in quarterly revenue

Recent Developments

In April 2026, Prostarm Info Systems executed a Memorandum of Understanding with Shenzhen Topband Co. Ltd for collaboration under Battery Energy Storage Systems (BESS).

Closing Insight

While top-line growth highlights healthy market adoption, stabilizing operating margins will be key for driving sustainable net profit growth in subsequent quarters.

High Performance Trading with SAHI.