Alphalogic Tech. Q1 FY27 Results (BSE: 542770)
Signal: Margin expansion
The read
The operating inflection remains margin-led rather than growth-led: consolidated revenue fell 11.5% YoY to ₹1,012.37 lakh, but EBITDA margin expanded to 24.8% from the year-ago level and EBITDA grew 8.7%; this is the fourth consecutive quarter of YoY margin expansion in the recent series, although ₹66.67 lakh of other income, equal to 29.4% of PBT, makes the 10.3% PAT growth lower quality and EPS growth of 3.8% exposes dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10.12 Cr | -11.5% | -20.7% |
| EBIT | ₹2.39 Cr | 8.6% | |
| Net profit | ₹1.29 Cr | 10.3% | |
| EPS | ₹0.27 | 3.8% | |
| EBIT margin | 24.8% |
P&L walk
Consolidated revenue declined 11.5% YoY to ₹1,012.37 lakh, but gross margin expanded to 24.8% and EBITDA rose 8.7% YoY to ₹251.38 lakh; PAT attributable to controlling interest increased 10.3% to ₹128.78 lakh, with ₹66.67 lakh of other income material to earnings.
Segments
Manufacturing of Racks remains the revenue engine at ₹891.88 lakh, down 6.2% YoY, while Information Technology grew 48.2% YoY to ₹68.88 lakh and Investment grew 27.4% to ₹70.30 lakh; Biofuels dragged with a ₹11.99 lakh segment loss versus a ₹5.50 lakh profit YoY, while consolidation lifted PAT to ₹128.78 lakh from standalone PAT of ₹81.54 lakh.
Key positives
- Consolidated EBITDA increased 8.7% YoY to ₹251.38 lakh despite revenue declining 11.5% to ₹1,012.37 lakh, with EBITDA margin expanding to 24.8% from the year-ago quarter.
- Information Technology segment revenue rose 48.2% YoY to ₹68.88 lakh and segment result rose to ₹59.64 lakh from ₹27.24 lakh.
- Investment segment result increased 27.4% YoY to ₹70.26 lakh, providing a material contribution to consolidated earnings.
Key concerns
- Manufacturing of Racks, the largest segment at ₹891.88 lakh of revenue, declined 6.2% YoY and its result fell 8.0% to ₹72.86 lakh.
- Biofuels generated no revenue and a ₹11.99 lakh loss versus ₹100.46 lakh revenue and a ₹5.50 lakh profit YoY.
- Consolidated EPS rose only 3.8% to ₹0.27 versus 10.3% growth in controlling-interest PAT, indicating dilution and/or minority-interest effects.
Earnings quality: includes non-operating other income
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