Gayatri Projects Q1 FY27 Results (NSE: GAYAPROJ)
Signal: Loss reversed
The read
The operating inflection is substantial—revenue reached ₹22,877.35 lakh, +198.7% YoY, EBITDA rose +341.0% and margin expanded to 28.6%—but earnings quality is weak because ₹2,526.02 lakh other income represented 68.7% of PBT, the exceptional item represented 59.4% of PBT, tax was zero and the lender/subcontractor recovery risks remain unresolved.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹228.77 Cr | 198.7% | +19.6% |
| EBIT | ₹60.79 Cr | 977.8% | |
| Net profit | ₹37.12 Cr | N/A | |
| EPS | ₹2.36 | N/A | |
| EBIT margin | 28.6% |
P&L walk
Revenue increased to ₹22,877.35 lakh, +198.7% YoY and +19.6% QoQ, while EBITDA rose to ₹65.45 crore and margin expanded to 28.6%; however, ₹2,526.02 lakh other income and the exceptional settlement charge of -₹2,184.07 lakh materially shaped the ₹3,711.74 lakh PAT.
Key positives
- Revenue rose to ₹22,877.35 lakh, +198.7% YoY and +19.6% QoQ, reversing the -29.1% YoY decline reported in Q2FY26.
- EBITDA increased to ₹65.45 crore, +341.0% YoY, and EBITDA margin expanded to 28.6% from the prior-year implied margin of approximately 19.4%.
- Finance costs declined to ₹218.14 lakh from ₹636.47 lakh YoY, reducing the operating burden.
- Gross margin expanded by approximately 270bps YoY to 26.4%, although the filing does not disclose whether this reflected pricing, input costs or mix.
Key concerns
- PAT of ₹3,711.74 lakh was not purely operational: other income was ₹2,526.02 lakh and the exceptional charge was -₹2,184.07 lakh.
- The company must pay Punjab National Bank ₹135.06 crores within three months under the approved one-time settlement and is relying on sale of mortgaged property to fund it.
- Subcontractor receivables of ₹7,483.05 lakh are delayed, with cumulative expected-credit-loss provision of ₹4,769.57 lakh.
- The preferential allotment of 27,71,00,315 shares at ₹10 per share expanded paid-up capital from ₹3,743.97 lakh to ₹9,285.98 lakh, creating material dilution risk despite positive EPS.
Earnings quality: includes other income and an exceptional item
Research and educational content only. Not investment advice.