Aditya Infotech Q1 FY27 Results (NSE: CPPLUS)
Signal: Margin expansion
The read
Q1FY27 extended the margin arc to a fifth consecutive quarter, with consolidated EBITDA margin rising 600bps YoY to 14.8% and EBITDA growing 220.0% versus 89.5% revenue growth; however, revenue fell 1.4% QoQ and margin declined 340bps from Q4FY26, so the next proof point is whether the annual margin expansion is durable rather than concentrated in a strong cost mix.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,402.42 Cr | 89.5% | -1.4% |
| EBIT | ₹194.95 Cr | 257.2% | |
| Net profit | ₹142.2 Cr | 335.5% | |
| EPS | ₹12.07 | 303.7% | |
| EBIT margin | 14.8% |
P&L walk
Revenue was ₹14,024.19 million, +89.5% YoY and -1.4% QoQ; gross margin expanded to 30.8% from 22.7% YoY as raw-material and inventory cost fell to 69.2% of revenue from 77.3%; EBITDA grew 220.0% with margin up 600bps to 14.8%, while PAT rose 335.5% to ₹1,422.00 million.
Segments
The group is reported as a single segment, and the ₹36.91 million gap between consolidated and standalone PAT indicates subsidiaries and the joint venture contributed positively but were not material to the quarter.
Key positives
- Consolidated revenue rose 89.5% YoY to ₹14,024.19 million, extending the company's high-growth trajectory from 45.5% YoY growth in Q4FY26.
- EBITDA increased 220.0% YoY versus revenue growth of 89.5%, a 130.5 percentage-point growth gap, while EBITDA margin expanded 600bps YoY to 14.8%.
- Employee cost grew 75.9% YoY, below revenue growth of 89.5%, and finance cost declined 59.0% to ₹43.13 million, supporting the operating-margin expansion.
- PAT grew 335.5% YoY to ₹1,422.00 million with other income of only ₹4.11 million, indicating that the bottom-line growth was primarily operational.
Key concerns
- Consolidated revenue declined 1.4% QoQ and EBITDA margin fell 340bps from Q4FY26's 18.2%, indicating sequential moderation after the sharp Q4 acceleration.
- Consolidated gross margin expanded 810bps YoY to 30.8%, but the filing does not disclose whether the improvement came from pricing, input costs or product mix.
- Other expenses grew 166.6% YoY to ₹1,173.61 million, materially faster than revenue growth of 89.5%, offsetting part of the employee-cost benefit.
- EPS growth of 303.7% lagged PAT growth of 335.5%, reflecting the enlarged equity base and subsequent ESOP issuance.
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