Fabtech Tech. Q1 FY27 Results (NSE: FABTECH)
Signal: Loss reversed
The read
Q1FY27 results show a clear turnaround from the loss-making year-ago quarter, but the quality of earnings is weak — net profit relies on other income (₹3.17 Cr) and subsidiary contributions (standalone PAT only ₹1.06 Cr). Revenue declined 53% sequentially, typical of the lumpy project cycle, and operating EBITDA margin is just 5.66%. The stock’s low P/E (13.7x) reflects this volatility, though the gross margin improvement offers a positive signal on project mix.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹74.98 Cr | 10.3% | -52.7% |
| EBIT | ₹4.25 Cr | 156.8% | |
| Net profit | ₹4.21 Cr | turnaround | |
| EPS | ₹0.95 | turnaround | |
| EBIT margin | 5.66% |
P&L walk
Revenue grew 10% YoY to ₹74.98 Cr but fell 53% QoQ as project completions skewed; gross margin expanded 780bps YoY to 44.5% on favourable project mix; EBITDA margin at 5.66%, though positive vs -11% YoY; net profit of ₹4.21 Cr driven by other income (₹3.17 Cr) and subsidiary contributions, not core operations alone.
Segments
Revenue growth led by Saudi Arabia and UAE (+140% and +162% YoY respectively), with new contributions from Morocco and Kenya; Rest of the World declined 22% YoY.
Key positives
- Turnaround to net profit of ₹4.21 Cr from loss of ₹6.13 Cr YoY.
- Revenue grew 10.3% YoY to ₹74.98 Cr, driven by strong international orders (Saudi +140%, UAE +162%).
- Gross margin expanded 780bps YoY to 44.5%, indicating favorable project mix.
- Final dividend of ₹0.60/share declared, reflecting confidence in cash flows.
Key concerns
- Sequential revenue decline of 52.7% QoQ highlights lumpy project execution.
- Operating EBITDA margin of only 5.66% remains thin; net profit highly dependent on other income (₹3.17 Cr, 42% of total income).
- Share dilution from IPO (~6% increase in equity) muted EPS recovery.
- Standalone PAT of just ₹1.06 Cr shows core Indian operations are still weak.
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