Elin Electronics Q1 FY27 Results (NSE: ELIN)
Signal: Margin pressure
The read
The operating trajectory deteriorated sharply: revenue grew 22.8% YoY, but gross margin compressed by 640bps and EBITDA margin fell 414bps to 1.8%; the ₹24.655 crore fire loss explains the reported PAT loss, while the pre-exceptional loss of ₹3.761 crore shows that underlying profitability was already weak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹362.8 Cr | +22.8% | +11.9% |
| EBIT | ₹-0.75 Cr | N/A | |
| Net profit | ₹-21.41 Cr | -328.0% | |
| EPS | ₹4.39 | +127.5% | |
| EBIT margin | 1.8% |
P&L walk
Consolidated revenue of ₹362.8 crore rose 22.8% YoY, but gross margin compressed by 640bps as raw-material cost increased to 79.3% of revenue from 72.7%; EBITDA fell to ₹6.46 crore and the ₹24.655 crore fire charge drove PAT to a ₹21.41 crore loss.
Segments
The Group reports one Electronics Manufacturing Services segment, so no segment-level momentum split is available; the consolidated loss of ₹21.41 crore was only ₹1.52 crore deeper than standalone loss of ₹19.89 crore, indicating limited subsidiary divergence.
Key positives
- Consolidated revenue reached ₹362.8 crore, +22.8% YoY, improving from +10.2% YoY in Q3FY26 despite moderation from +23.0% in Q2FY26.
- Employee costs rose 14.5% YoY versus revenue growth of 22.8%, providing some cost absorption before material-cost pressure.
- The fire-affected assets and inventories are stated to be adequately insured, although no insurance recovery has yet been recognised.
Key concerns
- Gross margin compressed approximately 640bps YoY to 21.6% as raw-material cost increased to 79.3% of revenue from 72.7%, with the driver not disclosed.
- EBITDA margin fell to 1.8% from approximately 5.9% YoY, and pre-exceptional loss was ₹3.761 crore, indicating weak underlying operating profitability beyond the fire charge.
- Finance costs rose 48.9% YoY to ₹3.006 crore, materially faster than revenue growth of 22.8%.
- Reported EPS of ₹4.39 rose despite consolidated PAT moving from a ₹9.392 crore profit to a ₹21.41 crore loss; the filing data should be reconciled before relying on per-share earnings.
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