Ambalal Sarabhai Q1 FY27 Results (NSE: AMBALALSA)
Signal: Margin pressure
The read
The key inflection is a gross-margin expansion of approximately 780bps YoY, but it did not translate into earnings: EBITDA fell 33.2% to ₹657.07 lakh and margin contracted 930bps to 15.1%; pharmaceuticals profit fell 47.7%, electronics supplied growth, and PAT was additionally exposed to ₹202.76 lakh of other income equal to 47.8% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹43.56 Cr | 8.0% | -33.5% |
| EBIT | ₹5.22 Cr | -41.7% | |
| Net profit | ₹3.98 Cr | -51.6% | |
| EPS | ₹0.52 | -51.4% | |
| EBIT margin | 15.1% |
P&L walk
Revenue rose to ₹4356.26 lakh, +8.0% YoY but -33.5% QoQ; gross margin expanded to approximately 50.1% from 42.3% YoY, yet EBITDA fell 33.2% to ₹657.07 lakh and PAT fell 51.6% to ₹397.58 lakh as operating profit weakened and other income of ₹202.76 lakh represented 47.8% of PBT.
Segments
Electronics was the growth engine, with revenue up 23.2% YoY to ₹1832.68 lakh and segment result up 126.1% to ₹127.16 lakh, while pharmaceuticals revenue fell 0.8% and its result fell 47.7% to ₹438.47 lakh, remaining the larger but weakening profit pool.
Key positives
- Consolidated revenue increased 8.0% YoY to ₹4356.26 lakh, led by electronics revenue growth of 23.2% to ₹1832.68 lakh.
- Gross margin expanded approximately 780bps YoY to 50.1%, although the filing does not disclose whether this was due to pricing, input costs or mix.
- Electronics segment result increased 126.1% YoY to ₹127.16 lakh, improving its contribution despite a 67.8% QoQ decline.
Key concerns
- EBITDA declined 33.2% YoY to ₹657.07 lakh and EBITDA margin contracted 930bps to 15.1%, despite the reported gross-margin expansion.
- Pharmaceuticals segment result fell 47.7% YoY to ₹438.47 lakh, making the core larger segment the main earnings drag.
- Standalone revenue fell 67.1% YoY to ₹54.37 lakh and standalone PAT fell 99.6% to ₹3.01 lakh, underscoring dependence on subsidiaries and associates.
Earnings quality: includes non-operating other income
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