Dam Capital Advi Q1 FY27 Results (NSE: DAMCAPITAL)
Signal: Revenue declined
The read
The trajectory remains highly volatile: Q1FY27 revenue of ₹29.86 crore was down 3.2% YoY and PAT of ₹0.15 crore was down 34.8%, but the 19.9% operating margin improved 35bps YoY after the 3,095bps and 2,130bps YoY contractions reported in Q4FY25 and Q3FY26; the key issue is whether investment banking can return from a ₹3.70 crore loss to profitability rather than dependence on ₹4.05 crore of unallocated result.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹29.86 Cr | -3.2% | +2.0% |
| Net profit | ₹0.15 Cr | -34.8% | |
| EPS | ₹0.02 | -33.3% | |
| EBIT margin | 19.9% |
P&L walk
Revenue declined 3.2% YoY to ₹29.86 crore and total expenses fell 2.5% to ₹29.68 crore, but the operating margin was only 19.9% and PAT dropped 34.8% to ₹0.15 crore as the investment banking and stock broking segments both remained loss-making.
Segments
Investment banking remained the main drag with a ₹3.70 crore segment loss despite revenue rising 3.7% YoY to ₹9.46 crore, while stock broking also posted a ₹0.06 crore loss on 9.9% lower revenue; ₹4.05 crore of unallocated result prevented a consolidated loss.
Key positives
- Operating margin improved to 19.9%, up 35bps YoY from 19.55%, marking an inflection after two consecutive quarters of YoY margin contraction.
- Investment banking revenue increased 3.7% YoY to ₹9.46 crore and 27.3% QoQ, although the segment remained loss-making at ₹3.70 crore.
- Consolidated PAT of ₹0.15 crore exceeded standalone PAT of ₹0.11 crore, with subsidiaries contributing ₹0.04 crore during the quarter.
- Segment assets increased 17.5% YoY to ₹437.15 crore while depreciation rose only 6.2% to ₹3.59 crore, producing a clean depreciation-to-asset-base check.
Key concerns
- Stock broking revenue declined 9.9% YoY to ₹16.26 crore and the segment remained loss-making at ₹0.06 crore.
- Investment banking generated ₹9.46 crore of revenue but reported a ₹3.70 crore loss, indicating weak conversion of transaction revenue into profit.
- Employee benefits expense rose 4.5% YoY to ₹18.16 crore while revenue declined 3.2%, increasing employee cost intensity to 60.8% of revenue.
- PAT declined 34.8% YoY to ₹0.15 crore and 40.0% QoQ, despite revenue being broadly stable sequentially at ₹29.86 crore.
Research and educational content only. Not investment advice.