Prabhatam Infra Venture Venture Q1 FY27 Results (BSE: 531647)
Signal: Loss widened
The read
The business has only just begun reporting lease-rental revenue of ₹12.75 lakh, but the economics are not yet viable: ₹39.88 lakh of expenses produced a ₹27.02 lakh loss, with finance costs of ₹13.12 lakh and depreciation of ₹11.04 lakh exceeding revenue; the proposed issue of 20,40,10,350 shares is the key capital-structure inflection and potential dilution overhang.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.13 Cr | N/A | +50.0% |
| EBIT | ₹-0.14 Cr | -100.0% | |
| Net profit | ₹-0.27 Cr | -200.0% | |
| EPS | ₹-0.14 | -180.0% | |
| EBIT margin | -23.1% |
P&L walk
Standalone revenue was ₹12.75 lakh, a new lease-rental income stream, but ₹39.88 lakh of expenses drove a ₹27.02 lakh loss; finance costs of ₹13.12 lakh and depreciation of ₹11.04 lakh are the dominant drags.
Key positives
- Revenue from the new lease-rental line increased to ₹12.75 lakh from ₹8.50 lakh sequentially, a 50.0% quarter-on-quarter increase.
- The quarterly loss narrowed to ₹27.02 lakh from ₹21.04 lakh sequentially despite revenue remaining very small, while no exceptional item or tax write-back inflated the result.
- Auditors issued an unmodified limited-review opinion.
Key concerns
- Revenue of ₹12.75 lakh was insufficient to cover ₹39.88 lakh of expenses, resulting in a -23.1% EBITDA margin and a ₹27.02 lakh net loss.
- Finance costs of ₹13.12 lakh were 741.0% above the ₹1.56 lakh year-ago level and exceeded quarterly revenue.
- Depreciation of ₹11.04 lakh was almost equivalent to revenue of ₹12.75 lakh, leaving EBIT at a ₹14.00 lakh loss.
- The filing proposes 20,40,10,350 equity shares at ₹1 per share, including 14,40,10,350 shares for consideration other than cash and 6,00,00,000 shares for cash; this is substantial relative to existing paid-up equity share capital of ₹190.29 lakh and could materially dilute existing holders.
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