Tracxn's Q2 FY27 revenue rises 0.2% as net loss narrows 25.7%

By Amara Osei

Tracxn reported revenue from operations of Rs 21.30 crore in Q2 FY27, up 0.2% from Rs 21.25 crore in Q2 FY26, while net loss narrowed 25.7% to Rs 4.13 crore. Tracxn's financial statements, sourced from the National Stock Exchange (NSE), put the year-earlier quarterly loss at Rs 5.56 crore.

The data intelligence platform also earned Rs 1.38 crore from non-operating sources, taking total income to Rs 22.70 crore for the quarter. Tracxn derives operating revenue from subscription sales, which provide access to its data and software. The company did not disclose a detailed revenue breakup for Q2 FY27.

What drove the cost increase?

Total expenses rose 25% to Rs 27.32 crore in Q2 FY27 from Rs 21.86 crore in the corresponding quarter of the previous fiscal year. The increase outpaced the 0.2% gain in operating revenue and came despite the additional non-operating income.

Employee benefit expenses remained Tracxn's largest cost head, increasing 22.5% to Rs 23.33 crore. They accounted for 85.4% of overall expenditure during the quarter. Employee benefits alone exceeded Tracxn's Rs 21.30 crore of revenue from operations.

Depreciation expenses increased to Rs 7.5 lakh from Rs 4 lakh in Q2 FY26. Other expenses rose 41% to Rs 3.92 crore. Together with employee benefits, those lines formed part of the quarter's 25% increase in total expenses.

Even after the cost increase, Tracxn reported a smaller quarterly loss than a year earlier, according to its NSE-sourced financial statements. The result did not reflect faster operating sales: revenue rose only 0.2% as employee benefits and other expenses expanded.

What does the half-year result show?

The half-year result was weaker than the quarterly improvement. H1 FY27 revenue from operations was Rs 42.38 crore, compared with Rs 42.44 crore in H1 FY26, leaving sales broadly flat across the six-month period. Net loss widened 60.8% to Rs 7.14 crore during the first half of FY27.

The divergence matters because the second-quarter loss reduction did not offset the larger deficit recorded over H1 FY27. Tracxn ended the half-year with flat revenue and a wider loss, while its latest quarter alone showed a smaller loss on nearly unchanged sales.

How does the market value Tracxn?

At the close of trading on Wednesday, Tracxn's shares settled at Rs 32.08. The company carried a market capitalization of approximately Rs 331 crore at that price. That valuation followed a quarter with almost no revenue growth, a 25.7% narrower loss and a 25% increase in expenses.

Tracxn's main revenue engine remains subscription sales for data and software access. The absence of a detailed revenue breakup leaves limited visibility into the mix behind the Rs 21.30 crore operating total. Non-operating income of Rs 1.38 crore sat outside that operating total, and Tracxn did not provide enough detail to assess performance within the subscription business.

What will investors watch next?

The better quarterly loss figure came alongside higher costs and nearly flat revenue. Employee benefits alone rose to Rs 23.33 crore, while other expenses climbed to Rs 3.92 crore. Any further improvement in the coming quarters will depend on whether those increases moderate before subscription revenue expands beyond its current flat base.

The next results will test whether Tracxn can sustain the 25.7% quarterly loss reduction while reversing the 60.8% widening in its H1 FY27 net loss. Employee benefits, already 85.4% of expenditure, leave little room for another 25% increase in total costs without faster revenue growth.