BAG Convergence H1 FY27 Net Profit Rises to ₹6.14 Cr; Revenue at ₹22.72 Cr
B.A.G. Convergence reported its unaudited financial results for the half year ended September 30, 2026, posting revenue from operations of ₹2,271.57 lakh (₹22.72 cr), up 3.9% YoY compared to ₹2,186.36 lakh in H1 FY26. Net profit for the half-year stood at ₹614.16 lakh (₹6.14 cr), compared to ₹603.14 lakh in the corresponding prior-year period. Half-yearly EPS was reported at ₹2.89 against ₹3.86 in H1 FY26 on an expanded post-IPO equity base of ₹2,121.88 lakh. Operating cash flow was negative at -₹2,352.63 lakh due to significant increases in working capital assets.
high confidence
What changedB.A.G. Convergence reported half-yearly earnings for H1 FY27 showing steady revenue and net profit, along with updates on IPO proceeds utilization.
Why it mattersDemonstrates post-listing operational stability following its October 2025 SME IPO, though heavy working capital demands led to negative operating cash flows of ₹23.53 cr.
Revenue from operations (H1 FY27): ₹2,271.57 lakhNet Profit (H1 FY27): ₹614.16 lakhHalf-year EPS: ₹2.89Operating Cash Flow: -₹2,352.63 lakhUnutilized IPO Proceeds: ₹1,282.99 lakh
📅 Short termMarket reaction is likely to be muted given flat revenue and profit growth alongside negative operating cash flows.
📈 Long termLong-term performance hinges on converting invested content and business expansion capex from IPO proceeds into sustained cash generation.
⚠ Risk flags
- Large negative operating cash flow (-₹23.53 cr) driven by working capital lock-up
- Auditor noted that comparative half-yearly figures for prior periods were restated by management and not audited or reviewed
👀 What to Watch
Track the deployment of remaining IPO proceeds of ₹1,282.99 lakh towards business expansion, and monitor whether high working capital lock-in eases to turn operating cash flows positive.
