Sar Auto Prod. Q1 FY27 Results (BSE: 538992)
Signal: Margin pressure
The read
The company reported explosive YoY revenue growth but a massive sequential drop, and operating margin contracted sharply. The bottom-line growth is entirely dependent on other income, leaving core earnings thin. Earnings quality is a key concern.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5.33 Cr | 134.8% | -62.9% |
| EBIT | ₹0.4 Cr | 185.7% | |
| Net profit | ₹0.37 Cr | 208.3% | |
| EPS | ₹0.78 | 225.0% | |
| EBIT margin | 18.8% |
P&L walk
Revenue grew sharply YoY but fell dramatically QoQ; EBITDA margin contracted ~900bps YoY and ~240bps QoQ. Other income (₹0.32 Cr) accounted for 86.5% of PBT, masking weak core operations. PAT of ₹0.37 Cr is almost entirely non-operating.
Key positives
- Revenue grew 134.8% YoY, indicating strong demand recovery or contract wins.
- PAT up 208.3% YoY, EPS up 225% YoY.
Key concerns
- Other income constitutes 86.5% of PBT — core operating profit is negligible.
- EBITDA margin contracted ~900bps YoY, reflecting cost pressures or mix erosion.
- Sequential revenue decline of 62.9% raises questions about sustainability of demand.
Earnings quality: includes non-operating other income
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