String Metaverse Q1 FY27 Results (BSE: 534535)
Signal: Margin expansion
The read
The growth engine remains highly concentrated in the subsidiary-led Gaming business: consolidated revenue reached ₹39,240.35 lakh, +97.3% YoY, and PAT ₹3,692.38 lakh, +101.8% YoY, but HFT slipped to a ₹480.03 lakh loss and depreciation jumped 614.0% YoY to ₹682.88 lakh; the key thesis question is whether Gaming can sustain scale without another sharp depreciation drag.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹392.4 Cr | +97.3% | +9.2% |
| EBIT | ₹43.83 Cr | +129.1% | |
| Net profit | ₹36.92 Cr | +101.8% | |
| EPS | ₹0.3 | +100.0% | |
| EBIT margin | 11.2% |
P&L walk
Consolidated revenue rose to ₹39,240.35 lakh, +97.3% YoY and +9.2% QoQ, with gaming providing nearly all growth; EBIT rose +129.1% to ₹4,383.46 lakh as depreciation increased to ₹682.88 lakh, while PAT rose +101.8% to ₹3,692.38 lakh and was not materially supported by other income of ₹1.95 lakh.
Segments
Gaming drove the group, with revenue of ₹39,091.19 lakh, +123.1% YoY, and segment result of ₹4,863.49 lakh, +143.0% YoY, while HFT revenue fell 93.7% YoY to ₹149.16 lakh and generated a ₹480.03 lakh loss.
Key positives
- Consolidated revenue increased 97.3% YoY to ₹39,240.35 lakh and 9.2% QoQ, extending the sharp multi-quarter growth trajectory.
- Gaming revenue rose 123.1% YoY to ₹39,091.19 lakh and Gaming segment result rose 143.0% to ₹4,863.49 lakh, confirming that the main growth engine is also profitable.
- Consolidated PAT rose 101.8% YoY to ₹3,692.38 lakh, while other income was only ₹1.95 lakh, indicating that reported profit was primarily operating-led.
- Employee benefits expense fell 62.8% YoY to ₹139.78 lakh while revenue rose 97.3% YoY, supporting operating margin expansion to approximately 12.9% from approximately 9.6%.
Key concerns
- HFT revenue declined 93.7% YoY to ₹149.16 lakh and the segment reported a ₹480.03 lakh loss, offsetting part of the Gaming profit.
- Depreciation increased 614.0% YoY to ₹682.88 lakh, creating a materially larger gap between operating EBITDA of approximately ₹5,066.34 lakh and EBIT of ₹4,383.46 lakh.
- The standalone parent generated only ₹404.78 lakh of revenue and ₹19.85 lakh of PAT versus consolidated revenue of ₹39,240.35 lakh and PAT of ₹3,692.38 lakh, increasing dependence on subsidiary execution and reporting quality.
Research and educational content only. Not investment advice.