Bharat Bijlee Q1 FY27 Results (NSE: BBL)
Signal: Steady quarter
The read
The trajectory is mixed: revenue grew 17.7% YoY to ₹547.17 crore, led by Industrial Systems, but gross margin compressed approximately 162bps, finance costs rose 284.2% to ₹7.80 crore and PAT fell 29.6% to ₹19.63 crore; the key inflection to monitor is whether Power Systems profitability recovers from its 52.6% YoY result decline.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹547.17 Cr | +17.7% | -28.7% |
| EBIT | ₹33.89 Cr | N/A | |
| Net profit | ₹19.63 Cr | -29.6% | |
| EPS | ₹17.37 | -29.6% | |
| EBIT margin | 7.3% |
P&L walk
Standalone revenue rose 17.7% YoY to ₹547.17 crore, but gross margin compressed by approximately 162bps and EBITDA margin fell to 7.3%; finance costs rose to ₹7.80 crore and PAT declined 29.6% to ₹19.63 crore, with other income contributing 41.7% of PBT.
Segments
Industrial Systems drove the quarter with revenue of ₹273.01 crore, up 37.3% YoY, and segment result of ₹29.34 crore, up 97.7%; Power Systems revenue grew only 3.0% while its result fell 52.6% to ₹16.86 crore.
Key positives
- Industrial Systems revenue increased 37.3% YoY to ₹273.01 crore and segment result increased 97.7% to ₹29.34 crore, making it the primary growth and profit engine.
- Employee benefits expense rose 15.1% YoY to ₹60.99 crore, slower than revenue growth of 17.7%, providing some cost discipline despite the gross-margin pressure.
- Segment assets rose 21.3% YoY to ₹3,568.79 crore while depreciation increased 19.8% to ₹5.82 crore, a clean depreciation-to-asset-base cross-check.
Key concerns
- Gross margin compressed approximately 162bps YoY to 24.2%, while cost of materials consumed rose to 99.6% of revenue from 82.5%; the filing does not disclose the cause and the company appears to have absorbed cost pressure.
- Power Systems segment result fell 52.6% YoY to ₹16.86 crore despite 3.0% revenue growth, indicating a material profitability issue in the larger project and transformer franchise.
- Finance costs increased 284.2% YoY to ₹7.80 crore, reducing the conversion of operating profit into PBT and PAT.
- PAT declined 29.6% YoY to ₹19.63 crore even as revenue grew 17.7%, indicating weak earnings conversion.
Earnings quality: includes non-operating other income
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