Innovassynth Technologies Q1 FY27 Results (BSE: 533315)
Signal: Loss reversed
The read
The key inflection is a return to profitability: revenue reached ₹5,598.59 lakh, +356.2% YoY, and gross margin expanded 596bps to approximately 66.5% as raw-material intensity fell 2,186bps to 27.1% of revenue. However, PAT of ₹673.53 lakh was 43.6% below Q4's ₹1,195.13 lakh because deferred-tax expense swung to ₹442.07 lakh from a ₹990.64 lakh credit, while the post-merger and rights-issue share base materially reduces per-share conversion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹55.99 Cr | +356.2% | +10.1% |
| Net profit | ₹6.74 Cr | Turnaround from ₹1,867.36 lakh loss | |
| EPS | ₹0.8 | Turnaround from negative EPS |
P&L walk
Revenue increased to ₹5,598.59 lakh, +356.2% YoY and +10.1% QoQ, while gross margin expanded to 66.5% from 60.5% YoY as raw-material cost fell to 27.1% of revenue from 49.0%; PAT turned positive at ₹673.53 lakh despite finance costs rising 48.1% YoY and a ₹442.07 lakh deferred-tax expense.
Key positives
- Revenue increased to ₹5,598.59 lakh, +356.2% YoY and +10.1% QoQ, indicating a substantial recovery from the ₹1,227.21 lakh year-ago base.
- Gross margin expanded approximately 596bps YoY to 66.5%, while raw-material intensity declined to 27.1% of revenue from 49.0%; the filing does not disclose the driver.
- Other expenses fell 13.1% YoY to ₹1,282.53 lakh despite revenue growth of 356.2%, and employee costs rose only 15.2% to ₹942.77 lakh.
Key concerns
- PAT of ₹673.53 lakh declined 43.6% QoQ from ₹1,195.13 lakh because deferred-tax expense was ₹442.07 lakh versus a ₹990.64 lakh credit in Q4.
- Finance costs increased 48.1% YoY to ₹200.31 lakh, leaving financing costs as a continuing drag despite the gross-margin recovery.
- The ₹0.80 EPS does not translate the PAT turnaround proportionately because paid-up equity capital increased to ₹9,286.07 lakh from ₹2,798.43 lakh after the merger and rights issue.
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