Prec. Electronic Q1 FY27 Results (BSE: 517258)
Signal: Loss widened
The read
The key inflection is operational: revenue fell 40.3% YoY to ₹13.28 Cr and EBITDA turned negative at ₹-0.24 Cr, producing a ₹-2.36 Cr loss versus ₹-0.28 Cr previously; the proposed Noida disposal is strategically significant because the undertaking contributed 99.99% of FY26 revenue and operations are being shifted to Ballabhgarh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹13.28 Cr | -40.3% | N/A |
| EBIT | ₹-1.34 Cr | N/A | |
| Net profit | ₹-2.36 Cr | -742.9% | |
| EPS | ₹-1.7 | -750.0% | |
| EBIT margin | -1.8% |
P&L walk
Standalone revenue was ₹13.28 Cr, down 40.3% YoY, EBITDA was negative at ₹-0.24 Cr with a -1.8% margin, EBIT was ₹-1.34 Cr and PAT was ₹-2.36 Cr versus a ₹-0.28 Cr loss; the deterioration is primarily operational rather than other-income-led, as other income was ₹0.42 Cr.
Key positives
- The company has identified Defence as the reportable operating segment, replacing Telecom, indicating a formal shift in business reporting toward its current operating focus.
- The proposed Noida disposal is intended for an unrelated buyer and is stated to be at not less than an independent registered valuer's valuation; operations are being shifted to the leasehold Ballabhgarh facility in phases.
Key concerns
- Revenue declined 40.3% YoY to ₹13.28 Cr and EBITDA was negative at ₹-0.24 Cr, with EBITDA margin at -1.8%.
- PAT deteriorated to a ₹-2.36 Cr loss from a ₹-0.28 Cr loss and EPS declined to ₹-1.7 from ₹-0.2.
- The Noida undertaking contributed 99.99% of FY26 revenue, or ₹7900.55 lakh, yet the company has not entered into an agreement, received consideration or disclosed an expected completion date for the proposed disposal.
- Execution of the phased shift from Noida to Ballabhgarh is now material to business continuity, but the filing provides no quantified transition cost, capacity impact or timeline.
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