Electrotherm(I) Q1 FY27 Results (NSE: ELECTHERM)
Signal: Margin pressure
The read
The operational recovery is fragile: revenue rose 9.5% YoY to ₹913.38 crore, but EBITDA margin fell 368bps to 2.62% and reported PAT of ₹6.93 crore is overwhelmed by ₹50.90 crore of unprovided interest, while Special Steel swung to an ₹8.08 crore loss from ₹30.07 crore profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹913.38 Cr | +9.5% | -19.9% |
| EBIT | ₹12.78 Cr | -62.1% | |
| Net profit | ₹6.93 Cr | -75.0% | |
| EPS | ₹5.44 | -75.0% | |
| EBIT margin | 2.62% |
P&L walk
Revenue increased to ₹913.38 crore, +9.5% YoY but -19.9% QoQ; EBITDA margin was 2.62%, down 368bps YoY, while reported PAT fell 75.0% to ₹6.93 crore and is overstated by ₹50.90 crore of unprovided interest.
Segments
Engineering & Technologies drove the result with ₹22.64 crore of segment profit, up 49.3% YoY, while Special Steel dragged with an ₹8.08 crore loss versus ₹30.07 crore profit YoY and Electric Vehicles remained loss-making at ₹1.80 crore.
Key positives
- Consolidated revenue increased 9.5% YoY to ₹913.38 crore after Q4FY26's 1.8% YoY decline.
- Engineering & Technologies revenue rose 31.2% YoY to ₹288.25 crore and segment profit rose 49.3% to ₹22.64 crore.
- Reported finance cost declined 51.5% YoY to ₹3.97 crore, although this excludes unprovided loan interest.
Key concerns
- Reported consolidated PAT of ₹6.93 crore is overstated by ₹50.90 crore because interest on NPA loans was not provided; on an adjusted basis the quarter would be loss-making.
- Special Steel segment result deteriorated to an ₹8.08 crore loss from ₹30.07 crore profit YoY despite revenue increasing 2.4% to ₹624.66 crore.
- EBITDA margin declined 368bps YoY to 2.62%, showing weak operating conversion despite revenue growth.
- Invent ARC loan instalments of ₹40.00 crore and related interest of ₹6.46 crore remained unpaid through June 30, 2026, while an Edelweiss ARC instalment of ₹15.79 crore was awaiting revised terms.
Research and educational content only. Not investment advice.