Avonmore Capital Q1 FY27 Results (NSE: AVONMORE)
Signal: Earnings grew
The read
Consolidated operating performance inflected sharply — EBIT grew 210% YoY on 36% revenue growth, margins expanded 935bps YoY, driven by operating leverage in fee and staff costs. The standalone parent remains weak but contributes a small share of group profit; the group's profit is substantially driven by subsidiaries (Debt/Equity Markets and Infra Advisory) and equity-accounted investees (₹5.71 Cr share of profit). A scheme of amalgamation of four wholly-owned subsidiaries into the company was approved, which may simplify structure going forward.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.5 Cr | 36.3% | -19.9% |
| EBIT | ₹0.12 Cr | 210.3% | |
| Net profit | ₹0.11 Cr | 53.3% | |
| EPS | ₹0.4 | 185.7% | |
| EBIT margin | 24.25% |
P&L walk
Consolidated revenue grew 36.3% YoY to ₹49.52 Cr, driven by strong growth in Debt & Equity Markets (+73.9% to ₹10.80 Cr) and Infra Advisory (+27.2% to ₹28.53 Cr). Operating profit (EBIT) surged 210.3% YoY to ₹12.01 Cr, with margin expanding 935bps YoY to 24.25%, aided by sharp decline in fee & commission expense as % of revenue (down 570bps) and employee cost (down 440bps). PAT attributable to owners more than doubled to ₹11.39 Cr (+196.6% YoY), with EPS of ₹0.40 (+185.7% YoY). Share of profit from equity-accounted investees was ₹5.71 Cr (+8.1% YoY), adding significantly to group profit.
Segments
Infra Advisory (Consultancy) remains largest segment with ₹28.53 Cr revenue (+27.2% YoY) and segment result of ₹2.48 Cr (+31.9% YoY). Debt & Equity Market operations showed strong rebound with ₹10.80 Cr revenue (+73.9%) and segment profit of ₹7.50 Cr vs ₹3.85 Cr in Q1FY26. Finance activities segment profit steady at ₹1.72 Cr (+3.0% YoY). Wealth Advisory/Broking revenue declined 23.1% YoY to ₹3.26 Cr but remained profitable at ₹0.48 Cr.
Key positives
- Consolidated revenue grew 36.3% YoY to ₹49.52 Cr, driven by Debt & Equity Market (+73.9%) and Infra Advisory (+27.2%) segments.
- EBIT margin expanded 935bps YoY to 24.25% — strong operating leverage as fee & commission expense dropped 570bps and employee cost dropped 440bps as % of revenue.
- PAT attributable to owners surged 196.6% YoY to ₹11.39 Cr, EPS at ₹0.40 (+185.7% YoY).
- Share of profit from equity-accounted investees remained robust at ₹5.71 Cr (+8.1% YoY).
- Board approved amalgamation of 4 wholly-owned subsidiaries into the company for simplification of corporate structure.
Key concerns
- Standalone business remains weak — PAT down 68.8% YoY to ₹0.24 Cr; revenue declined 24.4% YoY.
- Wealth Advisory/Broking segment revenue declined 23.1% YoY to ₹3.26 Cr.
- QoQ revenue declined 19.9% from Q4FY26 (₹61.79 Cr) indicating seasonality in advisory/consulting segments.
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