Everest Inds. Q1 FY26 Results (NSE: EVERESTIND)
Signal: Slipped to loss
The read
Operating trajectory remains deeply negative — EBITDA before exceptional was a loss of ₹31.47 Cr vs profit of ₹3.32 Cr YoY, the 7th straight quarter of margin compression at the EBITDA level. The reported net loss of ₹102.09 Cr is masked by a net exceptional gain: the property sale gain of ₹96.15 Cr was more than offset by ₹97.13 Cr of impairments and provision write-offs tied to capex withdrawal, especially in the Steel Buildings subsidiary. Building Products showed resilience with flat revenue and a doubled segment profit, but Steel Buildings continued its structural decline. The withdrawal of the ₹138 Cr Assam capex for Steel Buildings signals management's strategic pivot away from that segment.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹435.88 Cr | -12.9% | 33.2% |
| EBIT | ₹-122.75 Cr | -3592.6% | |
| Net profit | ₹-102.09 Cr | -516.5% | |
| EPS | ₹-64.39 | -6351.5% | |
| EBIT margin | -7.2% |
P&L walk
Revenue declined 12.9% YoY driven by a 52% collapse in Steel Buildings segment, while Building Products held flat. Operating loss (before exceptional) of ₹31.47 Cr vs profit of ₹3.32 Cr YoY — 7th consecutive quarter of margin compression. Exceptional items totaling ₹91.28 Cr (property sale gain of ₹96.15 Cr offset by ₹97.13 Cr of impairments, provisions, and write-offs) swung the reported bottom line to a ₹102.09 Cr loss.
Segments
Building Products segment reported a strong operating profit of ₹55.33 Cr, more than doubling YoY, defying the flat revenue — indicating margin recovery from input cost pass-through or cost cuts. Steel Buildings segment recorded a segment loss of ₹3.15 Cr on 52% revenue decline, dragging the total. The consolidated loss is entirely driven by Steel Buildings' poor performance and exceptional charges.
Key positives
- Building Products segment profit jumped to ₹55.33 Cr from ₹26.92 Cr YoY (+105.5%), despite flat revenue, suggesting margin recovery via pricing or cost rationalisation.
- Finance costs declined 12.8% YoY to ₹5.62 Cr, indicating lower leverage.
- Property sale generated a one-time cash inflow of ₹96.15 Cr, strengthening the balance sheet.
Key concerns
- EBITDA before exceptional turned from a profit of ₹3.32 Cr YoY to a loss of ₹31.47 Cr, 7th consecutive quarter of margin compression.
- Steel Buildings segment revenue collapsed 52.1% YoY to ₹62.26 Cr, with a segment loss of ₹3.15 Cr.
- Raw material cost rose to 50.9% of revenue from 49.1% YoY, indicating input cost pressure even as revenue declined.
- Net loss of ₹102.09 Cr is the largest quarterly loss in the series, driven by impairments and provisions from capex withdrawal.
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