Atlanta Electric Q1 FY27 Results (NSE: ATLANTAELE)
Signal: Margin expansion
The read
Revenue growth accelerated +48% YoY to ₹466 Cr and OPM expanded 300bps to 14.4%, marking the 5th straight quarter of margin expansion driven by raw material cost ratio declining 400bps to 69.2% and operating leverage (employee cost +41% growth slower than revenue before — but employee cost grew faster here — so input cost is main driver). PAT surged +123% YoY to ₹47 Cr, though gap between PAT growth and EPS growth (40%) flags dilution from IPO and subsidiary losses of ₹4.4 Cr. QoQ decline is purely seasonal vs Q4FY26 peak of ₹748 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹466.33 Cr | 48.2% | -37.6% |
| EBIT | ₹63.58 Cr | 109.4% | |
| Net profit | ₹47.33 Cr | 122.8% | |
| EPS | ₹6.09 | 40.0% | |
| EBIT margin | 14.4% |
P&L walk
Revenue grew 48% YoY to ₹466 Cr, OPM expanded 300bps to 14.4% on raw material cost ratio decline and operating leverage, PAT up 123% to ₹47 Cr.
Key positives
- Revenue up 48.2% YoY to ₹466 Cr — strong volume/mix growth.
- OPM expanded 300bps YoY to 14.4%, 5th consecutive quarter of margin expansion.
- Raw material cost ratio fell 400bps YoY to 69.2% — input cost tailwind.
- Finance cost down 16.9% YoY — debt reduction post-IPO.
- Consolidated PAT up 122.8% YoY to ₹47.33 Cr.
- Standalone PAT ₹53.09 Cr — core business robust, subsidiaries are small drag.
Key concerns
- Sequential revenue decline of 37.6% vs Q4FY26 — normal seasonality but steep drop.
- Employee cost grew 71.7% YoY (faster than revenue) — may indicate new hires.
- Subsidiaries reported ₹4.4 Cr net loss with zero revenue — need to monitor turnaround.
- EPS growth lags PAT growth (40% vs 123%) due to IPO dilution.
Research and educational content only. Not investment advice.