Forbes & Co Q1 FY27 Results (BSE: 502865)
Signal: Margin expansion
The read
The quarter shows a fragile operating recovery rather than a durable growth inflection: consolidated operating margin improved to 8.45% from 5.12% YoY and -4.71% in Q4FY26, but revenue contracted 40.9% YoY, Real Estate revenue recognized under Ind AS 115 fell 93.0% to ₹56 lakh, and Coding and Industrial Automation moved to a ₹69 lakh loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹13.26 Cr | -40.9% | -22.9% |
| EBIT | ₹0.58 Cr | +34.9% | |
| Net profit | ₹3.6 Cr | -25.9% | |
| EPS | ₹2.83 | -25.9% | |
| EBIT margin | 8.45% |
P&L walk
Revenue declined to ₹1,326 lakh, -40.9% YoY and -22.9% QoQ; gross margin expanded to 69.8% from 48.1% YoY, EBITDA margin improved to 8.45% from 5.12% YoY but fell from 17.74% QoQ, and PAT fell to ₹360 lakh from ₹486 lakh YoY despite ₹337 lakh of other income and ₹29 lakh of associate/JV profit.
Segments
Real Estate drove the consolidated result with ₹631 lakh revenue and ₹401 lakh segment profit, while Coding and Industrial Automation dragged with ₹696 lakh revenue and a ₹69 lakh loss versus a ₹31 lakh profit YoY.
Key positives
- Consolidated operating margin improved to 8.45% from 5.12% YoY, while finance costs declined 12.5% YoY to ₹14 lakh.
- Real Estate generated ₹401 lakh of segment profit on ₹631 lakh revenue, up from ₹404 lakh profit on ₹726 lakh revenue QoQ despite lower revenue.
- Consolidated segment assets increased 6.5% QoQ to ₹27,113 lakh, indicating sequential asset-base rebuilding.
Key concerns
- Consolidated revenue declined 40.9% YoY to ₹1,326 lakh, extending the weak top-line trajectory after Q1FY26 revenue of ₹2,245 lakh.
- Coding and Industrial Automation slipped from a ₹31 lakh segment profit YoY to a ₹69 lakh loss on ₹696 lakh revenue.
- Employee cost increased 1.5% YoY to ₹412 lakh despite revenue falling 40.9%, lifting employee cost to 31.1% of revenue from 18.1%.
- PAT declined 25.9% YoY to ₹360 lakh despite ₹337 lakh of other income and ₹29 lakh of associate/JV profit.
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