Fedders Holding Q1 FY27 Results (NSE: FEDDERSHOL)
Signal: Earnings declined
The read
The trajectory has weakened after Q4FY26's ₹13,413.40 lakh revenue and ₹2,373.56 lakh PAT: Q1FY27 operating revenue fell 11.0% YoY, gross margin compressed 790bps to 7.1%, EBITDA margin fell 170bps to 17.8%, and PAT fell 34.3% to ₹1,081.84 lakh. The key risk is earnings quality because other income of ₹1,083.51 lakh was 101.8% of PBT, while the parent has disposed of IM+ Investments & Capital Private Limited and now relies even more on Fedders Electric and Engineering Limited.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹68.88 Cr | -11.0% | N/A |
| EBIT | ₹11.15 Cr | -21.0% | |
| Net profit | ₹10.82 Cr | -34.3% | |
| EPS | ₹0.54 | -34.1% | |
| EBIT margin | 0% |
P&L walk
Operating revenue fell to ₹6,887.60 lakh, down 11.0% YoY, while gross margin compressed to 7.1% from 15.0% as material and inventory-related costs rose; EBITDA declined 18.9% to ₹1,225 lakh, EBIT declined 21.0% to ₹1,115 lakh, and PAT fell 34.3% to ₹1,081.84 lakh despite other income of ₹1,083.51 lakh.
Segments
No reportable operating segment table was provided; the ₹7,971.11 lakh consolidated revenue and ₹1,081.84 lakh PAT are substantially generated by the subsidiary, while standalone revenue was only ₹2.86 lakh and standalone PAT was negative ₹55.96 lakh.
Key positives
- Consolidated EBITDA remained positive at ₹1,225 lakh with a 17.8% margin despite operating revenue declining 11.0% YoY.
- Finance cost declined 10.6% YoY to ₹318.87 lakh, reducing pressure below the operating line.
- EPS of ₹0.54 declined 34.1% YoY versus PAT decline of 34.3%, indicating no material PAT-to-EPS dilution divergence.
- The company approved a direct NSE Main Board listing route without a public issue or capital raising, aimed at improving visibility and liquidity.
Key concerns
- Gross margin fell 790bps YoY to 7.1% as cost of materials consumed rose to 26.3% of operating revenue from 18.4%; the filing did not disclose the driver.
- Operating revenue declined 11.0% YoY to ₹6,887.60 lakh and EBITDA declined 18.9% to ₹1,225 lakh, showing negative operating momentum.
- Standalone PAT was negative ₹55.96 lakh versus negative ₹14.43 lakh YoY, highlighting that the parent itself is not generating the consolidated earnings.
- Other income of ₹1,083.51 lakh was 101.8% of PBT, making the ₹1,081.84 lakh PAT heavily dependent on non-operating income.
Earnings quality: includes non-operating other income
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