Deepak Builders Q1 FY27 Results (NSE: DBEIL)
Signal: Revenue declined
The read
The key inflection is a sharp operating deterioration: revenue fell 15.7% YoY to ₹8,985.56 lakh and gross margin compressed 1,704bps to 40.5% as raw-material costs rose to 59.5% of revenue, driving EBITDA down 52.7% and PAT down 80.8%; the ₹548.70 crore EPC award in prior context supports future backlog but has not yet offset weak Q1 execution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹89.86 Cr | -15.7% | -62.0% |
| EBIT | ₹11.24 Cr | -56.2% | |
| Net profit | ₹2.88 Cr | -80.8% | |
| EPS | ₹0.06 | -98.1% | |
| EBIT margin | 14.4% |
P&L walk
Standalone revenue fell to ₹8,985.56 lakh, down 15.7% YoY and 62.0% QoQ; gross margin compressed to 40.5% from 57.5% a year earlier as raw-material intensity rose to 59.5% from 42.5%, EBITDA fell 52.7% YoY to ₹1,296 lakh, EBIT fell 56.2% to ₹1,124 lakh, and PAT declined 80.8% to ₹287.83 lakh.
Key positives
- The company received a ₹548.70 crore EPC project award on 3 July 2026, providing potential backlog support against Q1FY27 revenue of ₹8,985.56 lakh.
- Construction cost declined 34.2% YoY to ₹1,526.04 lakh, while employee benefits declined 16.7% YoY to ₹636.72 lakh.
Key concerns
- Revenue declined 15.7% YoY to ₹8,985.56 lakh, reversing the scale seen in Q4FY26 revenue of ₹23,624.66 lakh.
- Gross margin compressed 1,704bps YoY to 40.5%, with raw-material costs rising to 59.5% of revenue from 42.5%; the filing does not disclose the cause.
- EBITDA declined 52.7% YoY to ₹1,296 lakh and EBIT declined 56.2% to ₹1,124 lakh, indicating that lower gross profit was not offset by cost reduction.
- Finance costs increased 31.5% YoY to ₹739.36 lakh, absorbing a larger share of operating profit.
- Other income of ₹103.69 lakh represented 27% of PBT, reducing the quality of the already depressed ₹287.83 lakh PAT.
Earnings quality: includes non-operating other income
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