A B Infrabuild Q1 FY27 Results (NSE: ABINFRA)
Signal: Margin pressure
The read
The key trajectory is revenue growth without earnings conversion: revenue rose 25.9% YoY to ₹7,625.14 lakh, but gross margin fell 235bps to 19.6%, EBITDA margin fell 170bps to 15.6%, finance cost rose 37.5% to ₹320.48 lakh and PAT grew only 4.3% to ₹534.30 lakh. The modest 30bps QoQ EBITDA-margin improvement is not yet enough to establish a durable margin inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹76.25 Cr | 25.9% | -9.2% |
| EBIT | ₹10.44 Cr | 12.3% | |
| Net profit | ₹5.34 Cr | 4.3% | |
| EPS | ₹0.08 | -90.0% | |
| EBIT margin | 15.6% |
P&L walk
Standalone revenue rose 25.9% YoY to ₹7,625.14 lakh, but gross margin fell 235bps to 19.6% and EBITDA grew only 13.2% to ₹1,186 lakh; higher employee, finance and depreciation costs limited PAT growth to 4.3%.
Key positives
- Revenue increased 25.9% YoY to ₹7,625.14 lakh, ahead of the 13.2% YoY EBITDA growth rate and indicating continued project execution growth.
- EBITDA margin improved 30bps QoQ to 15.6%, despite revenue declining 9.2% sequentially.
- Employee benefits plus other expenses grew 17.7% YoY, slower than revenue growth of 25.9%, providing some cost containment outside construction costs.
Key concerns
- Gross margin compressed 235bps YoY to 19.6%, and the filing does not disclose the driver; this is the dominant uncertainty in the quarter.
- PAT growth of 4.3% lagged revenue growth of 25.9% as EBITDA growth was only 13.2% and financial cost increased 37.5% YoY to ₹320.48 lakh.
- Employee benefits expense rose 59.2% YoY to ₹115.53 lakh, materially faster than revenue growth and offsetting part of the gross-profit benefit from scale.
- Revenue declined 9.2% QoQ to ₹7,625.14 lakh, so the YoY growth rate should be assessed against the sequential slowdown.
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