Guj Inds. Power Q1 FY27 Results (NSE: GIPCL)
Signal: Steady quarter
The read
The quarter shows a positive operating inflection: revenue grew 34.4% YoY, gross margin expanded 1,640bps to 67.2% as material cost fell to 32.8% of revenue, and EBITDA reached ₹353.67 Cr; however, the earnings quality is mixed because other income of ₹11,203.18 lakh was 53% of PBT and PAT declined 51.7% QoQ from ₹32,684.73 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹499.28 Cr | 34.4% | +16.6% |
| EBIT | ₹262.27 Cr | 204.2% | |
| Net profit | ₹157.9 Cr | 174.8% | |
| EPS | ₹10.17 | 174.9% | |
| EBIT margin | 70.8% |
P&L walk
Standalone revenue increased 34.4% YoY to ₹49,927.77 lakh and gross margin expanded to 67.2% from 50.8%, supporting EBITDA of ₹353.67 Cr; however, PAT of ₹15,789.70 lakh fell 51.7% QoQ and other income of ₹11,203.18 lakh represented 53% of PBT.
Key positives
- Revenue reached ₹49,927.77 lakh, +34.4% YoY and +16.6% QoQ, although the filing does not disclose the volume, tariff or realisation split.
- Gross margin expanded 1,640bps YoY to 67.2% as material cost declined to 32.8% of revenue from 49.2%; the filing does not disclose whether this reflected input deflation, pricing or mix.
- EBITDA was ₹353.67 Cr at a 70.8% margin, while generation expenses grew 30.9% YoY versus 34.4% revenue growth.
- The company awarded a ₹239.25 Crores BESS contract for 20mw/120mwh, including 10-year O&M, with an 18-month execution period subject to GUVNL consent.
Key concerns
- Other income of ₹11,203.18 lakh rose 480.8% YoY and represented 53% of PBT, making the ₹15,789.70 lakh PAT less representative of recurring operating earnings.
- PAT declined 51.7% QoQ from ₹32,684.73 lakh despite revenue growth of 16.6% QoQ, highlighting sequential earnings volatility.
- Finance costs increased 639.9% YoY to ₹5,108.51 lakh, while depreciation rose 99.8% YoY to ₹9,139.70 lakh.
Earnings quality: includes non-operating other income
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