B C C Fuba India Q1 FY27 Results (BSE: 517246)
Signal: Margin expansion
The read
The quarter marks a sharp margin inflection: consolidated derived EBITDA margin rose to 23.33% from 15.97% YoY and PAT grew 174.4%, but the quality of the step-up needs confirmation because gross-margin expansion to 42.23% was aided by a negative ₹109.22 lakh inventory-change expense and ₹167 lakh of additional revenue recognized after revised selling prices became enforceable; EMS is still loss-making at ₹18.65 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹25.27 Cr | +63.0% | +10.6% |
| EBIT | ₹5.47 Cr | +149.0% | |
| Net profit | ₹3.62 Cr | +174.4% | |
| EPS | ₹1.99 | +131.4% | |
| EBIT margin | 23.33% |
P&L walk
Consolidated revenue of ₹2,526.75 lakh grew 63.0% YoY, gross margin expanded to 42.23% from 39.05%, derived EBITDA rose to ₹589.67 lakh from ₹247.52 lakh, and PAT reached ₹361.86 lakh from ₹131.87 lakh; the margin step-up was driven by the negative ₹109.22 lakh inventory-change expense, while EMS remained loss-making.
Segments
PCB drove the group with revenue of ₹2,505.37 lakh and segment result of ₹553.84 lakh, while the new EMS segment contributed ₹21.38 lakh revenue but a ₹18.65 lakh loss; the subsidiary's ₹23.95 lakh net loss explains why consolidated PAT of ₹361.86 lakh was below standalone PAT of ₹385.81 lakh.
Key positives
- Consolidated revenue reached ₹2,526.75 lakh, +63.0% YoY and +10.6% QoQ, with PCB revenue of ₹2,505.37 lakh, +61.7% YoY.
- Derived EBITDA grew about 138.2% YoY versus revenue growth of 63.0%, a +75.2 percentage-point growth gap; employee cost grew 29.9%, depreciation 80.4% and finance cost 20.9%, all below revenue growth, while EBITDA margin expanded 736bps to 23.33%.
- PCB segment result increased 154.9% YoY to ₹553.84 lakh, substantially outpacing PCB revenue growth of 61.7%.
- Segment assets rose 114.0% YoY to ₹10,389.51 lakh while depreciation rose 80.4% to ₹54.48 lakh, a clean asset-base and depreciation progression.
Key concerns
- Gross margin expanded 318bps YoY to 42.23%, but the filing does not disclose the driver and the improvement coincided with inventory-change expense of negative ₹109.22 lakh versus positive ₹4.11 lakh YoY.
- The company recognized additional revenue of ₹1.67 crore, equivalent to ₹167 lakh, after revised selling prices were finalized and accepted; the timing benefit should be monitored for repeatability.
- EMS generated only ₹21.38 lakh revenue and a ₹18.65 lakh segment loss, while the subsidiary reported a ₹23.95 lakh net loss after tax.
- EPS growth of 131.4% lagged PAT growth of 174.4% as paid-up share capital rose 29.4% YoY to ₹1,982.27 lakh.
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