Afcons Infrastr. Q1 FY27 Results (NSE: AFCONS)
Signal: Revenue declined
The read
The key inflection is margin recovery from Q4FY26's 2.0% consolidated EBITDA margin to 11.5%, but the trajectory is not yet repaired: revenue remains 20.7% below Q1FY26, PAT is down 77.9%, and other income of ₹55.68 crore exceeded PBT of ₹50.59 crore, making earnings quality weak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,671 Cr | -20.7% | +2.2% |
| EBIT | ₹223.64 Cr | N/A | |
| Net profit | ₹30.3 Cr | -77.9% | |
| EPS | ₹0.82 | -78.1% | |
| EBIT margin | 11.5% |
P&L walk
Consolidated revenue declined 20.7% YoY to ₹2671 crore, but EBITDA margin improved to 11.5% from 2.0% QoQ; PAT fell 77.9% YoY to ₹30.3 crore because other income of ₹55.68 crore exceeded consolidated PBT of ₹50.59 crore.
Segments
The company reports a single EPC business segment, so no segment-level driver or drag is disclosed; the consolidated and standalone revenue figures were also nearly identical at ₹2671 crore and ₹2670.90 crore.
Key positives
- Consolidated EBITDA margin recovered to 11.5% from 2.0% QoQ, a 950bps sequential improvement, while revenue rose 2.2% QoQ to ₹2671 crore.
- Standalone PAT returned to ₹36.88 crore from a ₹63.04 crore loss QoQ, supported by lower depreciation of ₹83.18 crore versus ₹99.21 crore QoQ.
- Standalone finance costs declined 1.1% QoQ to ₹172.57 crore, although they remained 6.7% above the year-ago level.
Key concerns
- Revenue of ₹2671 crore declined 20.7% YoY and consolidated PAT of ₹30.3 crore declined 77.9% YoY, indicating that the margin rebound has not translated into earnings recovery.
- Standalone gross margin compressed 452bps YoY to 29.7%, with raw material cost rising to 21.6% of revenue from 20.2%; the filing did not disclose the cause.
- Standalone debt-equity increased to 0.89x from 0.65x YoY, while interest service coverage fell to 2.09x from 3.61x.
- Standalone PAT of ₹36.88 crore was supported by other income of ₹56.44 crore, while consolidated other income of ₹55.68 crore represented 110.1% of PBT.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.