Centrum Capital Q1 FY27 Results (NSE: CENTRUM)
Signal: Loss widened
The read
The key inflection is sequential margin recovery to 29.7% from 27%, helped by finance costs falling 56.9% QoQ, but the trajectory remains weak: consolidated EBITDA declined 32.1% YoY, Banking Business losses widened to ₹11,252.70 lakh, and PAT was a ₹9,242.72 lakh loss. The standalone profit of ₹363.73 lakh is not a reliable earnings recovery because other income of ₹2,234.51 lakh was 532.1% of standalone PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹911.98 Cr | 7.8% | -11.4% |
| EBIT | ₹233.53 Cr | -36.7% | |
| Net profit | ₹-92.43 Cr | -563.5% | |
| EPS | ₹-1.9 | -475.8% | |
| EBIT margin | 29.7% |
P&L walk
Consolidated revenue rose 7.8% YoY to ₹91,197.97 lakh, but EBITDA declined 32.1% to ₹27,122.00 lakh and EBITDA margin contracted to 29.7%; the group remained loss-making at ₹9,242.72 lakh after a ₹20,602.25 lakh exceptional gain in the year-ago quarter.
Segments
Banking Business remains the main drag at a ₹11,252.70 lakh segment loss despite revenue growth of 13.3% YoY; Institutional Business was profitable at ₹345.06 lakh, while Wealth and Asset Management and Housing Finance recorded losses of ₹1,163.37 lakh and ₹1,177.30 lakh respectively.
Key positives
- Consolidated revenue increased 7.8% YoY to ₹91,197.97 lakh, with Banking Business revenue growing 13.3% YoY to ₹74,697.62 lakh.
- Finance costs declined 26.3% YoY and 56.9% QoQ to ₹13,075.69 lakh, enabling consolidated EBITDA margin to recover 270bps sequentially to 29.7%.
- Standalone PAT turned positive at ₹363.73 lakh from a ₹3,271.42 lakh loss YoY, while standalone finance costs fell 40.9% YoY.
Key concerns
- Consolidated EBITDA fell 32.1% YoY to ₹27,122.00 lakh and EBIT fell 36.7% YoY to ₹23,353.00 lakh despite revenue growth of 7.8%.
- Banking Business generated ₹74,697.62 lakh of revenue but a ₹11,252.70 lakh segment loss, showing that the largest business is not converting growth into profit.
- Wealth and Asset Management, Retail Digital Broking and Housing Finance all remained loss-making at ₹1,163.37 lakh, ₹554.54 lakh and ₹1,177.30 lakh respectively.
Research and educational content only. Not investment advice.