Garuda Cons Q1 FY27 Results (NSE: GARUDA)
Signal: Margin expansion
The read
The trajectory remains positive: revenue rose +40.1% YoY to ₹17,538.17 lakh and PAT rose +48.4% to ₹4,154.48 lakh, while EBITDA margin expanded to 32.2% from approximately 30.3% YoY; however, the 979bps gross-margin tailwind came from raw-material intensity falling to 8.6% from 18.3%, while construction expenses grew +64.3%, so margin durability still requires confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹175.38 Cr | +40.1% | +25.2% |
| EBIT | ₹56.28 Cr | +48.7% | |
| Net profit | ₹41.54 Cr | +48.4% | |
| EPS | ₹4.47 | +48.5% | |
| EBIT margin | 32.2% |
P&L walk
Revenue increased to ₹17,538.17 lakh, +40.1% YoY and +25.2% QoQ; EBITDA rose to ₹5,638.56 lakh, +48.6% YoY, supported mainly by lower raw-material intensity, while construction expenses grew +64.3% YoY and limited sequential margin progression.
Segments
The company reports a single construction segment and India as its only geographical segment; the consolidated PAT of ₹4,154.48 lakh was only ₹1.05 lakh below standalone PAT of ₹4,155.53 lakh, showing negligible subsidiary drag.
Key positives
- Consolidated revenue increased +40.1% YoY and +25.2% QoQ to ₹17,538.17 lakh, extending the growth trajectory from ₹12,515.65 lakh in Q1FY26.
- PAT rose +48.4% YoY to ₹4,154.48 lakh, ahead of revenue growth, while EPS rose +48.5% to ₹4.47.
- Gross margin expanded 979bps YoY as raw-material cost declined to 8.6% of revenue from 18.3%, lifting EBITDA margin to 32.2% from approximately 30.3%.
- Finance costs increased only +16.3% YoY to ₹53.35 lakh, materially slower than the +40.1% revenue growth.
Key concerns
- Construction expenses increased +64.3% YoY to ₹9,875.03 lakh, faster than revenue growth and indicating rising execution-cost intensity.
- Sequential consolidated EBITDA margin declined 181bps despite revenue growth of +25.2% QoQ, making the quarter's YoY margin expansion dependent on the raw-material mix.
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