Adit.Birla Money Q1 FY27 Results (NSE: BIRLAMONEY)
Signal: Margin pressure
The read
Revenue growth of 16% was more than offset by a 38% surge in finance costs and 14% rise in employee costs, slashing operating margin by 647 bps and PAT by 27.6% — a sharp reversal from the strong profit growth seen in the prior year.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹130.77 Cr | 16.0% | 0.8% |
| Net profit | ₹11.13 Cr | -27.6% | |
| EPS | ₹1.97 | ||
| EBIT margin | 11.78% |
P&L walk
Revenue grew 16% YoY to ₹13,077.22 lakh but PAT fell 27.6% to ₹1,112.74 lakh as finance costs (+38.2% YoY) and employee costs (+13.8%) outstripped revenue growth, compressing operating margin from 18.25% to 11.78%.
Segments
Wholesale debt market contributed 94% of total segment PBIT (₹13.84 Cr) while Broking segment PBIT collapsed 82% YoY to just ₹1.01 Cr, indicating intense margin pressure in retail broking.
Key positives
- Revenue up 16% YoY to ₹13,077.22 lakh, driven by 20.7% growth in broking revenue and 4.3% in wholesale debt.
- Wholesale debt segment PBIT stable at ₹1,383.90 lakh, providing a resilient earnings anchor.
- Net gain on fair value changes improved 20.8% QoQ, indicating better proprietary trading outcomes.
Key concerns
- Broking segment PBIT collapsed 82% YoY from ₹569.29 lakh to ₹101.13 lakh, signalling severe margin erosion in retail broking.
- Finance costs jumped 38.2% YoY to ₹4,367.05 lakh, outpacing revenue growth and compressing operating margin by 647 bps to 11.78%.
- Employee expenses rose 13.8% YoY and 21.1% QoQ, adding cost pressure.
- Debt/equity increased to 7.36x from 6.58x a year ago, raising leverage risk.
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