Bhilwara Tech Q1 FY27 Results (NSE: BTTL)
Signal: Margin expansion
The read
The headline PAT recovery is not an operating turnaround: revenue grew +14.47% YoY to ₹608.71 lakh, but operating EBIT remained negative at ₹-25.42 lakh and gross margin contracted 1218bps to 7.60%; ₹338.16 lakh of associate profit supplied almost all consolidated earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6.09 Cr | +14.47% | -21.60% |
| EBIT | ₹-0.25 Cr | +74.59% | |
| Net profit | ₹3.62 Cr | +1087.27% | |
| EPS | ₹0.62 | +1140.00% | |
| EBIT margin | -4.18% |
P&L walk
Revenue increased to ₹608.71 lakh, +14.47% YoY but -21.60% QoQ; gross margin compressed to 7.60% from approximately 19.78% a year earlier as raw material cost rose to 75.22% of revenue from 52.70%, operating EBIT stayed negative at ₹-25.42 lakh, and PAT was lifted to ₹362.47 lakh by ₹338.16 lakh of associate profit.
Segments
The company reports a single business segment, but consolidated earnings were driven by the associate's ₹338.16 lakh profit while standalone PAT was only ₹4.31 lakh.
Key positives
- Consolidated revenue reached ₹608.71 lakh, +14.47% YoY, reversing the weak operating base.
- Employee and other expenses declined 65.09% YoY to ₹71.67 lakh, improving operating EBIT from ₹-100.02 lakh to ₹-25.42 lakh.
- The associate contributed ₹338.16 lakh of profit, lifting consolidated PAT to ₹362.47 lakh from ₹30.53 lakh YoY.
- Paid-up capital remained unchanged at ₹583.73 lakh, and EPS rose to ₹0.62 broadly in line with PAT growth.
Key concerns
- Gross margin compressed to 7.60% from approximately 19.78% YoY as raw material cost rose to 75.22% of revenue from 52.70%.
- Standalone operations remained weak, with PAT of only ₹4.31 lakh and EPS of ₹0.04 despite revenue of ₹605.71 lakh.
- Operating EBIT remained negative at ₹-25.42 lakh, so consolidated PAT does not represent internally generated operating profitability.
- Revenue declined 21.60% QoQ to ₹608.71 lakh, while operating margin fell 958bps sequentially to -4.18%.
Research and educational content only. Not investment advice.