Dredging Corpn. Q1 FY27 Results (NSE: DREDGECORP)
Signal: Loss reversed
The read
The main inflection is the YoY turnaround: revenue increased 46.72% to ₹35543.41 lakh and PAT moved from a ₹2333.26 lakh loss to ₹1123.54 lakh profit, helped by finance costs falling 68.53% YoY to ₹987.61 lakh; however, the 25.67% QoQ revenue decline and 88.46% QoQ PAT decline show that earnings remain project-timing sensitive rather than steadily compounding.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹355.43 Cr | +46.72% | -25.67% |
| EBIT | ₹0.21 Cr | N/A | |
| Net profit | ₹11.24 Cr | N/M (from loss to profit) | |
| EPS | ₹4.01 | N/M (from loss to profit) | |
| EBIT margin | 17.7% |
P&L walk
Revenue rose 46.72% YoY to ₹35543.41 lakh but fell 25.67% QoQ; the period moved from a ₹2333.26 lakh PAT loss to ₹1123.54 lakh profit, although sequential PAT fell sharply from ₹8690.54 lakh.
Key positives
- Revenue was ₹35543.41 lakh, up 46.72% YoY from ₹24224.46 lakh.
- PAT recovered to ₹1123.54 lakh from a ₹2333.26 lakh loss YoY, with EPS recovering to ₹4.01 from a ₹8.33 loss.
- Finance costs fell 68.53% YoY to ₹987.61 lakh, lifting interest coverage to 6.48x from 2.45x in the comparable extract.
Key concerns
- Revenue declined 25.67% QoQ from ₹47823.02 lakh and PAT declined 88.46% QoQ from ₹8690.54 lakh, highlighting high sequential volatility.
- Debt-equity increased to 0.89:1 from 0.88:1 at 31 March 2026, while debt service coverage remained weak at 0.19x.
- Fixed assets and CWIP increased to ₹210854.54 lakh while depreciation declined to ₹3139.26 lakh, requiring monitoring of asset commissioning and depreciation recognition.
Research and educational content only. Not investment advice.