DCM Shriram Q1 FY27 Results (NSE: DCMSHRIRAM)
Signal: Steady quarter
The read
DCM Shriram's Q1FY27 consolidated revenue grew a healthy 13.4% YoY at ₹3,262 Cr, but EBITDA margin slipped 20bps YoY to 9.0% — the fourth quarter in the last five with flat or declining margins (Q3FY26: 14%, Q4FY26: 11%, Q1FY26: 9%). PAT of ₹114 Cr grew 13.1% YoY, entirely tracking EBITDA growth, with no exceptional income or tax benefit. The sequential drop from Q4FY26's ₹371 Cr PAT (which had a low base and year-end adjustments) highlights the lumpy nature of quarterly earnings. Finance costs were flat, while depreciation rose 15% from ongoing capex. The company's forward-looking claims (58 MW renewable project by June 2027) remain on track but offer no near-term margin catalyst. Earnings quality is clean — PAT-to-EPS match holds. The quarter is a steady but unexciting start to FY27, with margins stuck in a 9-11% range.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,262 Cr | 13.4% | 1.3% |
| EBIT | ₹359 Cr | 13.2% | |
| Net profit | ₹114 Cr | 13.1% | |
| EPS | ₹7.27 | 13.1% | |
| EBIT margin | 11% |
P&L walk
Revenue growth of +13.4% YoY was strong, but EBITDA margin contracted ~20bps YoY and ~280bps QoQ to 9%, as total expenses grew in line with revenue. Finance costs were flat, depreciation rose ~15%, and other income dipped ~11%. PAT growth (+13.1%) tracked EBITDA growth, with tax and minority drag offsetting. OPM was flat YoY at 11%.
Key positives
- Consolidated revenue ₹3,262 Cr, +13.4% YoY — solid double-digit top-line growth sustained for the fourth consecutive quarter.
- Net profit ₹114 Cr, +13.1% YoY — in line with operating profit growth, no one-offs distorting the bottom line.
- Finance cost flat YoY at ₹67 Cr — debt levels and interest rates are being managed effectively.
Key concerns
- EBITDA margin contracted 20bps YoY and 280bps QoQ to 9.0% — total expenses grew at the same rate as revenue, limiting operating leverage.
- OPM flat at 11% YoY — margins have remained in a narrow 9-11% band for the last four quarters, with no visible improvement trajectory.
- PAT dropped 36.3% QoQ — sharply lower than Q4FY26, which was an unusually high quarter (₹371 Cr) and not indicative of trend.
Research and educational content only. Not investment advice.