Godawari Power Q1 FY27 Results (NSE: GPIL)
Signal: Margin pressure
The read
The key inflection is revenue, not earnings quality: consolidated revenue accelerated +32.3% YoY to ₹1,750.47 crore, but EBITDA margin contracted 300bps to 21% and PAT grew only 2.7% to ₹221.74 crore; this follows Q4FY26's 27% margin and marks a renewed sequential margin reset rather than a continuation of the recent margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,750.47 Cr | +32.3% | +8.7% |
| EBIT | ₹316.96 Cr | N/A | |
| Net profit | ₹221.74 Cr | +2.7% | |
| EPS | ₹3.59 | +2.0% | |
| EBIT margin | 21% |
P&L walk
Revenue accelerated to ₹1,750.47 crore, +32.3% YoY and +8.7% QoQ, while gross margin contracted to approximately 43.3% from 46.8% YoY and EBITDA margin fell to 21% from 24%, leaving PAT growth at only +2.7% despite the stronger top line.
Segments
The group outperformed the parent: consolidated PAT was ₹221.74 crore versus standalone PAT of ₹198.90 crore, with ₹5.19 crore of associate and joint-venture profit and subsidiary earnings providing the gap.
Key positives
- Consolidated revenue increased +32.3% YoY to ₹1,750.47 crore and +8.7% QoQ, substantially improving from the prior quarter's ₹1,610.27 crore.
- Material costs as a share of revenue declined to 55.6% from 56.7% YoY, providing some protection despite gross-margin compression.
- The company commissioned a 25 MW solar plant and a 6.91 MW waste-heat-recovery plant, expanding captive and renewable power capacity.
- Subsidiaries, associates and joint ventures lifted consolidated PAT to ₹221.74 crore versus standalone PAT of ₹198.90 crore.
Key concerns
- Consolidated EBITDA margin fell to 21% from 24% YoY and 27% QoQ even as revenue grew +32.3% YoY, indicating weak conversion of the top-line recovery.
- Gross margin contracted approximately 348bps YoY to 43.3%; material and related inventory costs rose to ₹991.39 crore from ₹703.74 crore, and the filing does not disclose the driver.
- Finance cost rose +33.3% YoY to ₹20.33 crore, faster than the revenue increase.
- Standalone PAT declined 0.8% YoY to ₹198.90 crore despite 31.1% revenue growth, making the consolidated outperformance dependent on subsidiaries and associates.
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