Permanent Magnet Q1 FY27 Results (BSE: 504132)
Signal: Margin pressure
The read
Revenue growth of 18% YoY was healthy, but consolidated PAT fell 38% as subsidiary Quantum Magnetics swung to a loss, dragging group EPS down 72% to ₹2.02; standalone PAT was ₹6.25 Cr (-14% YoY) with EPS ₹7.27. EBITDA margin improved sequentially to 18.8% from 14.4% but contracted ~348bps YoY on higher raw material costs (RM/sales up 460bps). The legal overhang of the winding-up stay order (Note 5) remains an unresolved risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹63.23 Cr | 18.1% | -5.0% |
| EBIT | ₹8.37 Cr | -9.9% | |
| Net profit | ₹3.8 Cr | -38.4% | |
| EPS | ₹2.02 | -71.8% | |
| EBIT margin | 18.8% |
P&L walk
EBITDA margin expanded 445bps QoQ (14.4%→18.8%) but contracted 348bps YoY as raw material cost ratio jumped 460bps; finance cost surged 250bps YoY. PAT fell 38% due to subsidiary losses (standalone PAT ₹6.25 Cr vs consolidated ₹3.80 Cr, implying ~₹2.45 Cr subsidiary loss).
Key positives
- Revenue grew 18.1% YoY to ₹63.23 Cr, maintaining double-digit growth trajectory.
- EBITDA margin expanded 445bps QoQ to 18.8%, recovering from Q4FY26 low of 14.4%.
- Standalone business resilient with PAT of ₹6.25 Cr and EPS of ₹7.27, demonstrating core operational strength.
Key concerns
- Consolidated PAT dropped 38.4% YoY to ₹3.80 Cr due to subsidiary Quantum Magnetics incurring a loss (standalone vs consolidated difference of ~₹2.45 Cr).
- EPS crashed 71.8% YoY to ₹2.02, signaling significant minority drag and/or dilution from subsidiary losses.
- Raw material cost ratio surged 460bps YoY to 56.2%, compressing gross margins; input cost headwind persists.
- Finance cost jumped 282% YoY to ₹2.37 Cr (consolidated), raising interest coverage concerns.
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