Aditya AMC Q1 FY27 Results (NSE: ABSLAMC)
Signal: Margin expansion
The read
Revenue growth decelerated to +3.5% YoY, the slowest in the trend; PAT growth of +11.7% was entirely powered by a +37.8% surge in other income, which accounted for 40% of PBT — a structural earnings-quality concern. Employee cost ratio rose 440bps, pressuring operating margins.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹462.96 Cr | 3.5% | -74.9% |
| EBIT | ₹407.2 Cr | 9.0% | |
| Net profit | ₹309.49 Cr | 11.7% | |
| EPS | ₹10.72 | 11.7% | |
| EBIT margin | 90.7% |
P&L walk
Revenue grew modestly 3.5% YoY, the slowest in the trend; operating profit (EBIT) grew faster at 9% aided by a 37.8% jump in other income, but employee cost as % of revenue expanded 440bps to 25.1%, a margin headwind.
Key positives
- Other income surged 37.8% YoY to ₹162.39 Cr, boosting PAT growth to +11.7%.
- EBITDA margin remained high at 90.7%, expanding 490bps YoY.
- EPS grew 11.7% YoY to ₹10.72, tracking PAT with no dilution.
- Consolidated subsidiaries contributed ₹9.4 Cr revenue, marginally adding to the top line.
Key concerns
- Revenue growth slowed to +3.5% YoY, the weakest in the trend — decelerating from +6.8% in Q4FY26.
- Employee cost as % of revenue rose to 25.1% from 20.7% a year ago, adding 440bps — a potential margin headwind if revenue growth remains tepid.
- Earnings quality flagged: other income at 40% of PBT masks underlying operating performance.
Earnings quality: includes non-operating other income
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