Susan Electrical Q1 FY27 Results (BSE: 544793)
Signal: Loss reversed
The read
The operating inflection is substantial: revenue reached ₹9,535.68 lakh, up 278.9% YoY, while EBITDA margin expanded 775bps to 11.9% as EBITDA grew approximately 980% versus revenue growth of 278.9%; however, the 17.5% QoQ revenue decline and gross-margin expansion to 17.5% being accompanied by a large negative inventory change warrant confirmation in subsequent quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹95.36 Cr | +278.9% | -17.5% |
| Net profit | ₹6.39 Cr | N/M from prior loss | |
| EPS | ₹3.93 | N/M from prior loss | |
| EBIT margin | 11.9% |
P&L walk
Revenue rose to ₹9,535.68 lakh, up 278.9% YoY but down 17.5% QoQ; gross margin expanded to 17.5% from 15.8% YoY, EBITDA margin rose to 11.9% from 4.2%, and PAT turned positive at ₹639.13 lakh from a ₹41.55 lakh loss.
Key positives
- Revenue was ₹9,535.68 lakh, up 278.9% YoY despite declining 17.5% QoQ from ₹11,560.98 lakh.
- EBITDA grew approximately 980% YoY to ₹1,137.34 lakh versus revenue growth of 278.9%, a growth gap of approximately 701 percentage points; employee costs grew 60.1%, depreciation 102.0% and finance costs 86.2%, supporting operating leverage.
- EBITDA margin expanded 775bps YoY to 11.9%, indicating meaningful fixed-cost absorption as the business scaled.
- PAT turned positive at ₹639.13 lakh from a ₹41.55 lakh loss, with no exceptional or extraordinary item reported.
Key concerns
- Revenue declined 17.5% QoQ to ₹9,535.68 lakh from ₹11,560.98 lakh, so the sustainability of the sharp YoY growth rate remains untested.
- Gross margin improved 166bps YoY to 17.5%, but the improvement coincided with a ₹932.66 lakh reduction in finished-goods inventories; the filing does not disclose whether pricing, input costs or mix drove the change.
- Finance costs rose 86.2% YoY to ₹233.47 lakh and 13.5% QoQ, remaining a significant drag on profit conversion.
- Paid-up equity capital increased to ₹2,033.08 lakh from ₹502.18 lakh YoY after the IPO, making per-share earnings dilution an important ongoing monitoring point.
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