Federal-Mogul Go Q1 FY27 Results (NSE: FMGOETZE)
Signal: Margin pressure
The read
The key inflection is weaker operating conversion: revenue grew 8.8% YoY to 52626.54 lakh, but EBITDA grew only 0.7% and margin contracted 128bps to 16.1% as raw material intensity rose 615bps to 43.99%; PAT growth of 4.8% was supported by other income equal to 28% of PBT, while EPS rose only 0.5%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹526.27 Cr | 8.8% | 7.7% |
| EBIT | ₹63.62 Cr | 2.7% | |
| Net profit | ₹45.33 Cr | 4.8% | |
| EPS | ₹7.81 | 0.5% | |
| EBIT margin | 16.1% |
P&L walk
Revenue was 52626.54 lakh, +8.8% YoY and +7.7% QoQ, while EBITDA rose only 0.7% YoY to 8465 lakh and EBITDA margin contracted to 16.1% from roughly 17.4%; PAT rose 4.8% to 4532.85 lakh, with other income at 1716.57 lakh or 28% of PBT supporting the bottom line.
Segments
The Group has one reportable business segment, manufacturing and sale of auto components; consolidated revenue of 52626.54 lakh was 2.0% above standalone revenue of 51580.82 lakh and consolidated PAT of 4532.85 lakh was 9.6% above standalone PAT of 4136.23 lakh, indicating the subsidiary lifted group earnings.
Key positives
- Consolidated revenue reached 52626.54 lakh, growing 8.8% YoY and 7.7% QoQ, ahead of standalone growth of 8.5% YoY.
- Employee cost grew 4.9% YoY against 8.8% revenue growth, while depreciation declined 4.6% YoY to 2103.43 lakh.
- The subsidiary lifted consolidated PAT to 4532.85 lakh versus standalone PAT of 4136.23 lakh, a 9.6% group uplift.
Key concerns
- Gross margin compressed roughly 208bps YoY to 60.64% as raw material cost increased to 43.99% of revenue from 37.85%; revenue growth did not protect profitability from input-cost pressure.
- EBITDA grew only 0.7% YoY versus revenue growth of 8.8%, with margin falling from roughly 17.4% to 16.1%.
- Finance cost rose 149.0% YoY to 237.58 lakh, despite remaining modest in absolute terms.
- Standalone PAT declined 0.2% YoY to 4136.23 lakh, showing that the consolidated PAT increase depended partly on subsidiary contribution and other income.
Earnings quality: includes non-operating other income
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