Arrow Greentech Q1 FY27 Results (NSE: ARROWGREEN)
Signal: Margin expansion
The read
Q1FY27 marked a sharp earnings inflection: revenue grew 111.2% YoY to ₹87.84 Cr and EBITDA margin expanded to 43.2% from 32.2% a year earlier, reversing the 24.8% margin in Q4FY26; the key thesis question is whether High-Tech commercialisation can sustain this step-up beyond the rebound from a weak base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹87.84 Cr | 111.2% | 110.2% |
| EBIT | ₹36.35 Cr | 153.8% | |
| Net profit | ₹27.38 Cr | 151.2% | |
| EPS | ₹18.15 | 151.7% | |
| EBIT margin | 43.2% |
P&L walk
Consolidated revenue increased to ₹87.84 Cr, +111.2% YoY and +110.2% QoQ, while EBITDA rose to ₹37.98 Cr and margin reached 43.2%; PAT increased to ₹27.38 Cr, with the filing attributing the performance to commercial conversion of prior investments in capacity, R&D and patents.
Segments
The High-Tech segment was the disclosed momentum driver, with revenue of ₹816 million and 135% QoQ growth; standalone PAT of ₹26.08 Cr also accounted for approximately 95% of consolidated PAT of ₹27.38 Cr.
Key positives
- Revenue reached ₹87.84 Cr, growing 111.2% YoY and 110.2% QoQ after revenue of ₹41.78 Cr in Q4FY26.
- EBITDA increased 135.5% YoY to ₹37.98 Cr and EBITDA margin expanded to 43.2% from 32.2% in Q1FY26 and 24.8% in Q4FY26.
- High-Tech segment revenue reached ₹816 million, up 135% QoQ, supporting the company's shift toward higher-value anti-counterfeit applications.
- Standalone EBITDA grew 166.8% YoY and standalone PAT grew 183.8% YoY, ahead of consolidated growth and showing that the parent business is currently driving earnings.
- EPS rose 151.7% YoY to ₹18.15 against PAT growth of 151.2%, a clean PAT-to-EPS conversion.
Key concerns
- The sequential rebound follows a low Q4FY26 base, when revenue was ₹41.78 Cr and EBITDA margin was 24.8%; repeatability of the 43.2% margin is not yet established.
- Management said the Green Products segment continues to track underlying demand cycles and requires further strengthening, but did not quantify its revenue or profitability.
- Consolidated revenue growth of 111.2% YoY lagged standalone growth of 134.9% YoY, indicating subsidiaries diluted the parent's stronger performance.
Research and educational content only. Not investment advice.