DCM Shriram Inds Q1 FY27 Results (NSE: DCMSRIND)
Signal: Revenue declined
The read
The operating trajectory deteriorated sharply: revenue fell 41.1% YoY to ₹29,363 lakh, EBITDA fell 72.0% to ₹1,335 lakh and EBITDA margin was only 4.5%, while PAT of ₹155 lakh depended materially on ₹617 lakh of other income; this is a continuation of the weak margin trend seen in the recent results series rather than an inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹293.63 Cr | -41.1% | N/A |
| EBIT | ₹8.86 Cr | -76.4% | |
| Net profit | ₹1.55 Cr | -91.3% | |
| EPS | ₹0.18 | -91.2% | |
| EBIT margin | 3.0% |
P&L walk
Revenue declined 41.1% YoY to ₹29,363 lakh, EBITDA fell 72.0% to ₹1,335 lakh and EBIT fell 76.4% to ₹886 lakh, leaving PAT down 91.3% at ₹155 lakh; the reported profit was supported by ₹617 lakh of other income against PBT of only ₹129 lakh.
Key positives
- EPS of ₹0.18 declined 91.2% YoY, broadly matching the 91.3% PAT decline to ₹155 lakh, so the weak per-share result does not point to a material dilution effect.
- The statutory auditors issued an unmodified limited-review conclusion for the quarter.
Key concerns
- Revenue fell 41.1% YoY to ₹29,363 lakh, and EBITDA fell 72.0% to ₹1,335 lakh with EBITDA margin at 4.5%; the filing provides no evidence of a volume, realization or mix recovery.
- PAT declined 91.3% YoY to ₹155 lakh despite ₹617 lakh of other income, making reported profit heavily dependent on non-operating income.
- Finance costs of ₹614 lakh were substantial relative to EBITDA of ₹1,335 lakh, leaving limited operating coverage before tax.
Earnings quality: includes non-operating other income
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