Augmont Enterprises Limited has announced a strong performance for the second quarter of FY27, achieving record profitability. The company reported a 98% quarter-on-quarter increase in PAT, reaching ₹120 crore. This growth was supported by a 16% YoY increase in EBITDA to ₹181 crore, reflecting improved margins and a strategic focus on sustainable profitability, driven by increased domestic scrap procurement and a robust ecosystem model.
Augmont Achieves Record Profitability in Q2 FY27
Augmont Enterprises Limited has demonstrated a remarkable financial performance in the second quarter of FY27, marked by record profitability and substantial margin expansion. The company’s strategic shift towards an improving business mix and a focus on sustainable profitability have yielded significant results, showcasing the efficacy of its technology-first precious metals platform model.
Key Financial Highlights
In Q2 FY27, Augmont’s consolidated Profit After Tax (PAT) surged to ₹120 crore, representing a substantial 98% increase quarter-on-quarter and a 7% year-on-year growth. The PAT margin improved to 0.76% from 0.32% in Q1 FY27 and 0.52% in Q2 FY26. Furthermore, EBITDA grew by 16% YoY to ₹181 crore, with the EBITDA margin expanding to 1.14% from 0.72% in the prior year.
Strategic Sourcing and Revenue Management
The impressive financial results were achieved despite a deliberate strategy of lower revenues, which stood at ₹15,836 crore, down 27.0% YoY and 16.4% QoQ. This reduction was influenced by softer demand and government measures impacting gold and silver flows. Augmont significantly scaled up domestic scrap procurement, increasing its share from approximately 3% in Q2 FY26 to 24.5% in Q2 FY27, an eightfold increase. This strategy, while tying up more capital and resulting in a longer working capital cycle (3-4 days compared to 1.8-2 days for regular flows), yielded higher margins and contributed to better quality earnings and a stronger sourcing ecosystem.
Standalone Performance and Silver’s Role
The company’s core business also saw significant improvement. Augmont Enterprises Limited (AEL) standalone Q2 FY27 PAT was ₹85 crore, approximately 2.5x Q2 FY26 and 3.9x Q1 FY27, with a PAT margin of 0.65%. AEL’s H1 PAT of ₹107 crore is 75% higher than H1 FY26. The improvement in AEL’s performance was driven by higher-margin scrap and the strategic positioning during the period when silver became a restricted commodity. Augmont leveraged its ecosystem and multi-source procurement strategy to secure the DGFT license and import via IIBX, while competitors faced supply challenges.
Growth and Future Outlook
Augmont’s platform is demonstrating growth in both quality and scale. The company now serves over 52.3 million registered consumers and holds the position of India’s No. 1 Gold Platform. The recent agreement with NSE for Electronic Gold Receipts (EGR) further positions Augmont to lead the formalization of India’s gold ecosystem.
Source: BSE
