Talbros Engg. Q1 FY27 Results (BSE: 538987)
Signal: Steady quarter
The read
The annual trajectory remains constructive, with revenue up 6.8%, EBITDA up 7.4% and PAT up 12.5% YoY, but Q1FY27 marks a sequential slowdown: revenue fell 9.4%, EBITDA margin declined 202bps to 11.2% and PAT fell 34.2%; the modest 6bps YoY margin gain does not yet establish a meaningful operating inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹130.37 Cr | +6.8% | -9.4% |
| EBIT | ₹11.38 Cr | +7.1% | |
| Net profit | ₹6.28 Cr | +12.5% | |
| EPS | ₹12.37 | +12.5% | |
| EBIT margin | 11.2% |
P&L walk
Consolidated revenue increased 6.8% YoY to ₹13,037.13 lakh, EBITDA rose 7.4% to ₹1,463.06 lakh and EBIT rose 7.1% to ₹1,138.00 lakh, but both EBITDA and EBIT fell 22.9% and 28.5% QoQ respectively; PAT growth to ₹628.21 lakh was helped by operating growth and a lower tax charge than Q4, not by exceptional items.
Key positives
- Consolidated PAT increased 12.5% YoY to ₹628.21 lakh, ahead of revenue growth of 6.8%, supported by 7.1% EBIT growth and a 7.6% YoY decline in tax expense.
- EPS rose 12.5% YoY to ₹12.37, fully tracking PAT with no change in the reported share count of 50,76,504.
- Standalone and consolidated PAT were closely aligned at ₹628.94 lakh and ₹628.21 lakh, indicating no material subsidiary drag on reported earnings.
Key concerns
- Revenue declined 9.4% QoQ to ₹13,037.13 lakh and EBITDA fell 22.9% QoQ to ₹1,463.06 lakh, causing EBITDA margin to contract 202bps QoQ to 11.2%.
- Raw-material cost increased to 50.5% of revenue from 49.9% YoY, compressing gross margin by 58bps despite 6.8% revenue growth.
- Employee plus other expenses grew 9.9% YoY against 6.8% revenue growth, limiting operating-margin expansion to 6bps YoY.
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