Sugs Lloyd Q1 FY27 Results (BSE: 544501)
Signal: Growth decelerated
The read
Revenue growth remains strong YoY with a sharp gross margin expansion to 59.5% (up 1837bps) driving operating leverage, but sequential revenue decline (-32%), surging employee and other costs (+121% and +124% YoY), and EPS dilution (-3.7%) temper the bottom-line quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹78.4 Cr | 32.0% | -31.9% |
| EBIT | ₹12.69 Cr | 37.0% | |
| Net profit | ₹7.54 Cr | 30.3% | |
| EPS | ₹3.43 | -3.7% | |
| EBIT margin | 16.3% |
P&L walk
Revenue grew 32% YoY but fell 32% QoQ; gross margin surged to 59.5% from 41.2% driven by lower material cost share, lifting EBITDA margin 57bps YoY; PAT up 30% YoY but EPS down 3.7% due to equity dilution from a 43% increase in shares
Key positives
- Revenue grew 32% YoY to ₹78.4 Cr, driven by order execution.
- Gross margin expanded to 59.55% from 41.18% YoY due to lower material cost proportion.
- EBITDA margin improved 57bps YoY to 16.3%.
- PAT up 30% YoY; associate contribution more than quadrupled.
Key concerns
- Revenue fell 32% sequentially, indicating lumpy project execution.
- Employee costs surged 121% YoY, far outpacing revenue growth.
- Other expenses jumped 124% YoY, eroding operating leverage.
- EPS declined 3.7% despite PAT growth due to 43% equity dilution.
- Finance costs rose 65% YoY, reflecting higher borrowings.
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