Corporate Merch Q1 FY27 Results (BSE: 540199)
Signal: Slipped to loss
The read
The key inflection is a move from ₹76.98 lakh of EBIT and ₹57.71 lakh of PAT in Q1FY26 to ₹-51.55 lakh of EBIT and PAT in Q1FY27: income rose 56.7% YoY, but the business remains operationally dependent on other income and could not absorb the 388.6% increase in other expenses.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0 Cr | N/A | +46.8% |
| EBIT | ₹-0.51 Cr | N/A | |
| Net profit | ₹-0.52 Cr | N/A | |
| EPS | ₹-0.08 | N/A | |
| EBIT margin | -19.96% |
P&L walk
Total income was ₹258.30 lakh, up 56.7% YoY and 46.8% QoQ, but ₹301.26 lakh of other expenses, up 388.6% YoY, converted the prior-year ₹76.98 lakh profit into a ₹51.55 lakh loss; EPS fell to ₹-0.08 from ₹0.17.
Key positives
- Total income increased to ₹258.30 lakh, up 56.7% YoY and 46.8% QoQ.
- Employee benefits expense declined to ₹8.49 lakh from ₹25.91 lakh YoY, down 67.1%.
Key concerns
- Revenue from operations remained ₹0.00 lakh, so the ₹258.30 lakh total-income increase was entirely attributable to other income.
- Other expenses rose 388.6% YoY to ₹301.26 lakh, driving EBITDA/EBIT margin down to -19.96% from 46.78% a year earlier.
- The company reported a ₹51.55 lakh loss versus a ₹57.71 lakh profit YoY, while EPS declined to ₹-0.08 from ₹0.17.
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