Ahm. Steelcraft Q1 FY27 Results (BSE: 522273)
Signal: Revenue declined
The read
The key inflection is a sharp margin deterioration: revenue fell 9.3% YoY to ₹3,872.25 lakh, but gross margin compressed 449bps to 6.9% as stock purchases rose to 93.1% of revenue, pulling EBITDA margin down 515bps to 5.4% and PAT down 55.4% to ₹150.23 lakh; the filing provides no evidence that this is temporary.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹38.72 Cr | -9.3% | -25.6% |
| EBIT | ₹1.9 Cr | -57.8% | |
| Net profit | ₹1.5 Cr | -55.4% | |
| EPS | ₹1 | -71.1% | |
| EBIT margin | 5.4% |
P&L walk
Standalone revenue declined 9.3% YoY and 25.6% QoQ to ₹3,872.25 lakh, while gross margin fell 449bps YoY to 6.9% and EBITDA margin contracted to 5.4%, driving a 55.4% PAT decline to ₹150.23 lakh.
Key positives
- The company remained profitable with PAT of ₹150.23 lakh and EBITDA of ₹209 lakh despite revenue declining 9.3% YoY.
- Other income was only ₹0.14 lakh, so the ₹150.23 lakh PAT was not materially supported by treasury income or exceptional items.
- Finance cost remained small at ₹7.15 lakh, equivalent to approximately 0.2% of revenue, despite rising sharply from ₹0.05 lakh YoY.
Key concerns
- Gross margin compressed 449bps YoY to 6.9% as purchase of stock-in-trade rose to 93.1% of revenue from 88.6%, indicating materially weaker gross profitability with no driver disclosed.
- EBITDA declined 53.6% YoY to ₹209 lakh and EBITDA margin fell approximately 515bps to 5.4%, substantially faster than the 9.3% revenue decline.
- Revenue declined 25.6% QoQ from ₹5,202.19 lakh to ₹3,872.25 lakh, while PAT fell 53.2% QoQ from ₹321.09 lakh to ₹150.23 lakh.
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