Armee Infotech Q1 FY27 Results (NSE: ARMEE)
Signal: Loss reversed
The read
The key inflection is the YoY PAT turnaround to 181.52 lakh despite only 1.66% revenue growth, but gross margin compressed 221bps to 9.45% as direct costs rose to 90.55% of revenue; the next results must show whether lower employee costs and the new Renewable Energy contribution can offset product-cost pressure and higher depreciation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹275.79 Cr | +1.66% | -66.57% |
| Net profit | ₹1.82 Cr | N/A | |
| EPS | ₹0.76 | N/A | |
| EBIT margin | N/A |
P&L walk
Revenue was broadly flat at ₹27,579.38 lakh, up 1.66% YoY, but gross margin fell to 9.45% from 11.66% as direct costs rose faster than revenue; PAT turned positive at ₹181.52 lakh from a ₹34.74 lakh loss, aided partly by lower tax and higher other income.
Segments
IT Infrastructure Solution and Managed Services remained the main driver with 25,774.80 lakh of revenue and 1,397.47 lakh of result, while Renewable Energy added 1,804.58 lakh of revenue and 48.08 lakh of result; consolidated PAT of 181.52 lakh was below standalone PAT of 276.85 lakh because of subsidiary and unallocated costs.
Key positives
- Consolidated PAT turned positive at 181.52 lakh from a 34.74 lakh YoY loss, while EPS improved to ₹0.76 from negative ₹0.15.
- Employee costs declined 53.54% YoY to 603.64 lakh against 1.66% revenue growth, indicating a materially lower employee-cost burden.
- Renewable Energy contributed 1,804.58 lakh of revenue and 48.08 lakh of segment result in its disclosed quarter, creating a new earnings stream.
Key concerns
- Gross margin compressed 221bps YoY to 9.45% as direct costs rose to 90.55% of revenue from 88.34%; the filing does not disclose the cause, indicating cost pressure was absorbed.
- Core IT Infrastructure Solution and Managed Services revenue declined 4.99% YoY to 25,774.80 lakh even as consolidated revenue grew 1.66%.
- Finance costs rose 10.91% YoY to 345.94 lakh, while consolidated PAT of 181.52 lakh remained below standalone PAT of 276.85 lakh because of group-level costs.
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