Eimco Elecon(I) Q1 FY27 Results (NSE: EIMCOELECO)
Signal: Margin pressure
The read
Revenue grew 14.7% YoY but EBITDA margin contracted 181bps to 28.4% on higher operating expenses, while other income contributed nearly 40% of PBT. PAT growth of 6.2% lagged revenue, indicating quality concerns.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹77.52 Cr | 14.73% | 15.91% |
| EBIT | ₹19.9 Cr | 7.37% | |
| Net profit | ₹15.38 Cr | 6.19% | |
| EPS | ₹26.66 | 6.17% | |
| EBIT margin | 25.67% |
P&L walk
Revenue growth of 14.7% YoY driven by higher sales of machinery and spares; EBITDA margin contracted YoY as input costs and other expenses grew faster, but PAT growth was aided by elevated other income (39.6% of PBT).
Segments
Single segment — machinery and spares; no segment-level profitability disclosed.
Key positives
- Revenue up 14.7% YoY to ₹77.52 Cr, with sequential improvement of 15.9% from Q4FY26.
- EBITDA margin expanded 1100bps QoQ to 28.4%, recovering from a low Q4 base.
- Interest cover remains strong (>70x) with negligible net debt (D/E 0.01).
Key concerns
- EBITDA margin contracted 181bps YoY despite revenue growth; operating expenses outpaced sales.
- Other income forms 39.6% of PBT, inflating reported profit; core operating performance is weaker.
- PAT growth (+6.2%) lagged revenue growth (+14.7%) due to margin compression.
Earnings quality: includes non-operating other income
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