Delton Cables Q1 FY27 Results (BSE: 504240)
Signal: Steady quarter
The read
The key inflection is revenue growth accelerating to +83.2% YoY from ₹15,633.18 lakh, but the earnings trajectory is less robust than PAT suggests because derived gross margin contracted 505bps to 19.7% and finance costs rose 67.4% to ₹1,294.01 lakh; the current quarter's PAT growth was helped by a lower effective tax rate of 27.8% versus 31.1% YoY, though other income at ₹62.27 lakh was not material.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹286.36 Cr | +83.2% | -10.6% |
| Net profit | ₹7.59 Cr | +146.3% | |
| EPS | ₹8.79 | +146.2% |
P&L walk
Revenue increased to ₹28,636.20 lakh, +83.2% YoY but -10.6% QoQ; derived gross margin fell to 19.7% from 24.7% YoY despite cost of materials declining to 72.4% of revenue from 94.8%, while finance costs rose 67.4% and PAT increased 146.3% to ₹759.13 lakh.
Key positives
- Revenue from operations increased to ₹28,636.20 lakh, +83.2% YoY, materially outpacing employee benefits and other expenses growth of +24.4%.
- PAT rose to ₹759.13 lakh, +146.3% YoY, and EPS rose to ₹8.79, +146.2%, with no evidence of equity dilution because paid-up capital remained ₹864.00 lakh.
- Employee benefits plus other expenses fell to 11.0% of revenue from 16.2% YoY, supporting earnings conversion despite gross-margin pressure.
Key concerns
- Derived gross margin compressed 505bps YoY to 19.7% even as revenue grew 83.2%; cost of materials consumed was 72.4% of revenue versus 94.8% YoY, but the filing does not disclose the driver of the gross-margin movement.
- Finance costs increased 67.4% YoY to ₹1,294.01 lakh and rose to 4.5% of revenue from 3.6% YoY, limiting conversion of operating growth into net profit.
- Revenue declined 10.6% QoQ from ₹32,030.98 lakh, while gross margin improved 391bps QoQ, leaving the sequential growth trend uneven.
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