Artemis Electri. Q1 FY27 Results (NSE: AEPL)
Signal: Margin expansion
The read
The quarter marks a revenue setback to ₹1,627.48 lakh, down 17.6% YoY and 60.1% sequentially, but operating margin inflected positively to 13.4% from 11.19% YoY as direct expenses fell 21.6%; the key thesis risk is that manufacturing remains negligible while the lithium-ion plant's commissioning is only envisaged by March 2027.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹16.27 Cr | -17.6% | -60.1% |
| EBIT | ₹1.93 Cr | 1.6% | |
| Net profit | ₹1.27 Cr | -3.1% | |
| EPS | ₹0.05 | 0.0% | |
| EBIT margin | 13.4% |
P&L walk
Consolidated revenue declined to ₹1,627.48 lakh, -17.6% YoY, but EBITDA margin expanded to 13.4% from 11.19% as direct expenses fell 21.6% YoY; PAT still declined 3.1% to ₹127.12 lakh.
Segments
No segment table was disclosed; standalone PAT of ₹131.19 lakh exceeded consolidated PAT of ₹127.12 lakh by ₹4.07 lakh, indicating a subsidiary drag on group earnings.
Key positives
- EBITDA margin expanded to 13.4%, +221bps YoY, as direct expenses declined 21.6% versus revenue decline of 17.6%.
- EBIT increased 1.6% YoY to ₹193 lakh despite revenue declining 17.6%, while finance costs fell 38.9% to ₹3.57 lakh.
- Other income was ₹0 and the XBRL earnings-quality assessment was clean, so the ₹127.12 lakh consolidated PAT was not inflated by treasury income or exceptional items.
Key concerns
- Revenue declined 17.6% YoY to ₹1,627.48 lakh and 60.1% sequentially, reversing the ₹1,975.47 lakh Q1FY26 and ₹4,075.08 lakh Q4FY26 levels.
- Management states manufacturing activities were closed/negligible and have resumed only at a minimal/negligible level, leaving current activity dependent on projects and project-related work.
- Consolidated PAT of ₹127.12 lakh was ₹4.07 lakh below standalone PAT of ₹131.19 lakh because of the subsidiary drag.
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