Prevest Denpro Q1 FY27 Results (BSE: 543363)
Signal: Margin expansion
The read
The key inflection is margin: consolidated EBITDA margin reached 42.4%, up 873bps YoY from 33.67% in Q1FY26 and above 36.48% in Q4FY26, while revenue grew 20.9% YoY; the improvement was not driven by gross-margin expansion, which was only 77.5% (+8bps), but by operating-cost absorption despite employee costs rising 23.5%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹19.07 Cr | 20.9% | 0.7% |
| EBIT | ₹7.56 Cr | 26.2% | |
| EPS | ₹4.7 | 28.1% | |
| EBIT margin | 42.4% |
P&L walk
Revenue increased to ₹1,906.83 lakh (+20.9% YoY), gross margin was broadly stable at 77.5% (+8bps), and EBITDA rose 24.7% to ₹808.14 lakh with margin at 42.4%; employee costs increased 23.5%, including a disclosed ₹227.80 lakh labour-code impact.
Segments
No segment table is applicable because the company reports no more than one reportable segment under AS 17; standalone revenue of ₹1,944.33 lakh grew 23.7% YoY versus consolidated growth of 20.9%, indicating subsidiary consolidation drag.
Key positives
- Consolidated revenue reached ₹1,906.83 lakh, up 20.9% YoY, accelerating from the 18.0% YoY growth reported in Q1FY26.
- EBITDA increased 24.7% YoY versus revenue growth of 20.9%, while EBITDA margin expanded to 42.4% from 33.67% in Q1FY26.
- Raw-material cost declined to 25.2% of revenue from 25.8% YoY, keeping gross margin broadly stable at 77.5% despite 20.9% revenue growth.
- EPS rose 28.1% YoY to ₹4.70 with unchanged paid-up equity share capital of ₹1,200.30 lakh.
- The company recommended a final dividend of ₹1.00 per equity share for FY26, subject to shareholder approval.
Key concerns
- Employee benefit expense rose 23.5% YoY to ₹377.29 lakh, including a disclosed ₹227.80 lakh increase related to implementation of the Labour Codes from April 1, 2026.
- Consolidated revenue of ₹1,906.83 lakh grew 20.9% YoY, below standalone growth of 23.7%, suggesting subsidiaries reduced the reported group growth rate.
- Gross margin contracted 166bps QoQ to 77.5% as material consumption rose to ₹480.49 lakh from ₹376.13 lakh in Q4FY26.
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