High Energy Bat. Q1 FY27 Results (BSE: 504176)
Signal: Revenue declined
The read
Q1FY27 is a steep deterioration – revenue halved vs last year and swung to a deep operating loss, driven by a plunge in the sole active segment (Aerospace Naval) and a massive spike in materials consumed; the company burned cash even before depreciation and finance costs.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.08 Cr | -40.6% | -90.6% |
| EBIT | ₹-0.02 Cr | -256.4% | |
| Net profit | ₹-0.02 Cr | -332.1% | |
| EPS | ₹2.02 | 132.2% | |
| EBIT margin | -24% |
P&L walk
Revenue collapsed 40.6% YoY driven by a 40.6% drop in the sole active segment (Aerospace Naval), while cost of materials surged 230% YoY – far outpacing revenue – leading to a gross loss and EBITDA margin of -24%.
Segments
The Aerospace Naval segment, which accounted for all revenue, swung from a PBIT of ₹159.68 lakh (YoY) to a loss of ₹195.91 lakh; the Lead Acid division remains suspended with a small recurring loss.
Key positives
- Deferred tax credit of ₹62.43 lakh reduced the net loss from ₹243.93 lakh (PBT) to ₹181.50 lakh.
- Finance cost declined 27.5% YoY, suggesting some debt reduction.
Key concerns
- Revenue of ₹788.43 lakh collapsed 40.6% YoY, driven by a 40.6% drop in the Aerospace segment – no volume driver disclosed.
- Cost of materials consumed surged to ₹1086.10 lakh (137.8% of revenue) vs ₹328.82 lakh a year ago, causing a gross loss.
- EBITDA margin cratered to -24% from +12.5% a year ago; steepest quarterly margin compression on record.
- Lead Acid division remains suspended with nil revenue and persistent small losses.
- Employee cost as % of revenue doubled to 68.3%, reflecting fixed cost rigidity.
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