Arkade Q1 FY27 Results (NSE: ARKADE)
Signal: Revenue declined
The read
The quarter shows an operating slowdown rather than a gross-margin problem: revenue fell 7.8% YoY to ₹14,697.04 lakh, gross margin expanded only 15bps to 29.1%, and derived EBITDA margin contracted 257bps to 18.9%; PAT of ₹1,907.83 lakh is 33.6% below the prior year, while the apparent sequential rebound is largely an impairment-led comparison against a ₹10,956.61 lakh loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹146.97 Cr | -7.8% | -25.2% |
| Net profit | ₹19.08 Cr | -33.6% | |
| EPS | ₹1.03 | -33.5% | |
| EBIT margin | 18.9% |
P&L walk
Consolidated revenue declined to ₹14,697.04 lakh, down 7.8% YoY and 25.2% QoQ, gross margin was broadly stable at 29.1%, but derived EBITDA margin fell to 18.9% from 21.5% a year ago; PAT of ₹1,907.83 lakh was 33.6% below the prior year despite the absence of the ₹18,217.09 lakh impairment recorded in the preceding quarter.
Key positives
- Gross margin was resilient at 29.1%, up 15bps YoY, while construction cost plus change in inventories declined to 70.9% of revenue from 71.1%.
- Finance cost remained low at ₹21.93 lakh, up only 1.9% YoY despite the consolidated group structure.
- EPS of ₹1.03 declined 33.5% YoY versus PAT decline of 33.6%, indicating no material equity dilution or minority-interest drag.
Key concerns
- Revenue from operations fell 7.8% YoY to ₹14,697.04 lakh and 25.2% QoQ, with no disclosed bookings, collections, handovers or volume data to demonstrate the next growth leg.
- Derived EBITDA margin contracted 257bps YoY to 18.9% because employee and other operating expenses rose 25.7% YoY while revenue declined 7.8%.
- Depreciation increased 64.8% YoY to ₹317.90 lakh, but the filing does not provide fixed-asset or CWIP balances to verify whether new capacity or project assets are entering service.
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