Universal Autofoundry Q2 FY27 Results

Revenue reached Rs 61.46 crore in Q2 FY27, while the company reported a net loss of Rs 0.56 crore.

Reader Takeaway: Revenue growth is currently offset by elevated finance and depreciation costs, with new solar capacity expected to provide future relief.

What just happened

Universal Autofoundry released its unaudited financial results for the quarter ended September 30, 2026. The company reported a net loss of Rs 0.56 crore, a significant shift from the net profit of Rs 0.61 crore recorded in the same quarter last year. Revenue from operations showed a year-on-year increase, rising to Rs 61.46 crore from Rs 54.86 crore.

Why this matters

The transition from profit to loss highlights the impact of rising operational expenditures. Specifically, finance costs for the first half of the year surged to Rs 2.74 crore, nearly doubling from Rs 1.42 crore in the same period last year. Additionally, depreciation expenses climbed to Rs 6.30 crore, reflecting higher asset deployment.

The solar project update

The company successfully commissioned a 6.5 MWp solar power plant in Churu, Rajasthan, on August 26, 2026. This project, costing Rs 24.98 crore, is designed for captive energy consumption under the Rajasthan Renewable Energy Policy, 2023. This strategic investment is intended to lower long-term dependence on traditional, higher-cost energy sources.

What changes now

Investors are watching how this solar asset will impact the bottom line in upcoming quarters. With total assets increasing to Rs 185.18 crore from Rs 163.56 crore as of March 31, 2026, the company is scaling its infrastructure. However, the rise in non-current borrowings to Rs 41.46 crore suggests a heavier debt burden in the near term.

What to track next

Watch for sustained margin recovery and the operational efficiency gains from the new solar installation. Monitoring quarterly debt servicing requirements will be crucial given the rise in interest costs.