Schneider APW Q1 FY27 Results (BSE: 544786)
Signal: Steady quarter
The read
The key inflection is negative: revenue accelerated to ₹1,095.29 million, +16.9% YoY versus the company's recent negative sales-growth profile, but material costs rose 39.2% YoY and EBITDA margin compressed 610bps to 6.9%, driving PAT down 45.0% to ₹44.73 million; the recovery in sales has not yet translated into earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹109.53 Cr | +16.9% | +34.5% |
| EBIT | ₹6.31 Cr | N/A | |
| Net profit | ₹4.47 Cr | -45.0% | |
| EPS | ₹3.7 | -45.0% | |
| EBIT margin | 6.9% |
P&L walk
Revenue increased to ₹1,095.29 million, +16.9% YoY and +34.5% QoQ, but the material-cost ratio rose to 71.5% including inventory and trading adjustments from 65.3% YoY, compressing gross margin to approximately 28.5% from 34.7%; EBITDA margin fell to 6.9% from 13.0%, and PAT declined to ₹44.73 million, -45.0% YoY.
Key positives
- Revenue reached ₹1,095.29 million, +16.9% YoY and +34.5% QoQ, indicating a sequential demand recovery despite the prior negative sales-growth trajectory.
- Employee benefits expense grew 3.0 percentage points slower than revenue YoY, reducing employee-cost intensity to 9.1% of revenue from 10.0%.
Key concerns
- Gross margin contracted approximately 620bps YoY to 28.5% as material costs including inventory and trading adjustments rose to 71.5% of revenue from 65.3%.
- EBITDA margin fell 610bps YoY to 6.9%, so the 16.9% revenue growth did not convert into operating-profit growth.
- Other income of ₹19.07 million represented 30.7% of PBT of ₹62.29 million, making reported profit quality dependent in part on non-operating income.
Earnings quality: includes non-operating other income
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