Signpost India Q2 PAT Rises 11% to INR34.5 Crores

Second Quarter FY27 (Q2):

Revenue from operations: INR134.5 crores (vs. INR134 crores in Q2 FY26)
Gross profit: INR51.6 crores at 38.3% margin (vs. 41.4% in Q2 FY26)
Cost of services: INR83 crores (up 6% YoY)
Employee costs: INR13.9 crores (vs. INR11.2 crores in Q2 FY26)
Other expenses: INR9.2 crores (down 7% YoY)
EBITDA: INR28.4 crores at 21.1% margin
Depreciation: INR6.1 crores (changed accounting policy from WDV to straight-line method)
Finance cost: INR4 crores (vs. INR3.2 crores in Q2 FY26)
Profit before tax: INR19.7 crores
Tax expense: INR3.9 crores (vs. INR6.9 crores in Q2 FY26)
Profit after tax: INR15.8 crores at 11.7% margin
Earnings per share: INR2.96

First Half FY27 (H1):

Revenue from operations: INR286.8 crores (up 6% YoY)
Gross profit: INR110.4 crores at 38.5% margin
Operating EBITDA: INR62.8 crores at 21.9% margin (vs. 24.4% in H1 FY26)
Depreciation: INR11.6 crores (vs. INR19.1 crores in H1 FY26 due to accounting policy change)
Profit before tax: INR45.3 crores (up 6% YoY)
Profit after tax: INR34.5 crores (up 11% YoY) at 12% margin
Earnings per share: INR6.45 (vs. INR5.79 in H1 FY26)

Business Model Transformation:

Digital media now accounts for 34% of revenue (vs. 26% in FY26 and 19% at listing in 2024)
Direct advertiser relationships grew significantly, with direct channel revenue up 76% YoY in H1
Number of active direct billers reduced by 35% (from 347 to 226) while average revenue per biller increased ~170%
Regional/MSME client revenue more than doubled despite 42% reduction in billers
Corporate enterprise clients remained stable at 71 (vs. 78) with 40% revenue growth

Asset Activation Progress:

Bangalore Metro network: 50% assets activated, target 75-100% by March 2027
Kolkata streetscape media: 40-45% live, expected completion by March 2027
Upgrade program for existing sites prioritized, first group completion expected by March 2027

Experiential Advertising Initiatives:

Kolkata Park Street project (Opekkhay Achi Maa Durga Puja corridor): Generated 20-33% of annual Kolkata branch revenue in 10 days
Bangalore Majestic Metro Station project (Stone to Life): 20+ brands invested including Flipkart, IKEA, Apollo Hospitals, TVS, Zee
Culture-led projects combining media, technology and local cultural elements
Plans for 2-3 additional culture-led projects in Mumbai, Bangalore, or Kolkata by March 2027

Cash generated from operations: INR61.4 crores in H1 (tripled from INR20.1 crores in H1 FY26)
Working capital neutral in H1 (vs. absorption of INR47 crores in H1 FY26)
Trade receivables: INR273.1 crores (reduced by INR44.2 crores)
Capital investment: INR48 crores in H1 for new transit media assets
Fund-based debt: INR195 crores (broadly unchanged from INR196.1 crores in March 2026)
Debt-to-equity ratio: 0.61x (improved from 0.68x)
Cash and bank balances: INR35.3 crores (vs. INR24 crores)
Net worth: INR321 crores as of September 30, 2026

CRISIL upgraded long-term rating to A- Stable with short-term rating of A2+ in April 2026

Management maintains double-digit revenue growth guidance for FY27
Expects stronger second half driven by full festive season in Q3
Project completions and site upgrades expected to contribute by March 2027
Target to reduce receivable days to 120 by March 2027 (currently at higher levels)
Confident in delivering committed growth despite Q2 headwinds from shifted festive calendar