Guj Apollo Inds Q1 FY27 Results (NSE: GUJAPOLLO)
Signal: Margin expansion
The read
The key inflection is a sharp consolidated EBITDA-margin recovery to 40.7% from approximately 38.0% YoY and negative QoQ levels, but it is occurring alongside a 9.9% revenue decline and does not yet establish a durable operating recovery; consolidated PAT of ₹97.49 lakh fell 29.6% YoY because ₹749.73 lakh of other income dominated PBT, while standalone operations improved materially and the company has only announced the start of its road-construction equipment manufacturing and sales activity.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9.98 Cr | -9.9% | -22.3% |
| EBIT | ₹2.64 Cr | -5.4% | |
| Net profit | ₹0.81 Cr | -29.6% | |
| EPS | ₹0.62 | -36.7% | |
| EBIT margin | 40.7% |
P&L walk
Consolidated revenue declined to ₹997.56 lakh, -9.9% YoY and -22.3% QoQ, but EBITDA margin rose to 40.7% from approximately 38.0% YoY as gross margin improved to 33.7%; PAT still fell to ₹97.49 lakh, -29.6% YoY, because operating earnings were outweighed by tax and a very large other-income contribution.
Segments
The company reports a single construction and mining machinery segment, but consolidation materially masks the parent trajectory: standalone revenue rose 11.9% YoY and PAT rose 280.0%, while consolidated revenue fell 9.9% and PAT fell 29.6%, with subsidiaries contributing ₹579.32 lakh of revenue and ₹59.68 lakh of PAT.
Key positives
- Standalone revenue reached ₹740.57 lakh, growing 11.9% YoY despite consolidated revenue declining 9.9% YoY, indicating better parent-level momentum.
- Standalone EBITDA grew 96.7% YoY to ₹1.18 Cr and EBITDA margin reached 15.9%, a 690bps YoY expansion.
- Consolidated gross margin improved to 33.7% from approximately 25.8% YoY, while raw-material cost was 63.3% of revenue.
Key concerns
- Consolidated PAT fell 29.6% YoY to ₹97.49 lakh even as EBITDA margin expanded to 40.7%, showing weak conversion from operating performance to bottom line.
- Other income of ₹749.73 lakh equaled 454.5% of consolidated PBT, making current profit quality dependent on non-operating income.
- Revenue declined 9.9% YoY and 22.3% QoQ; the filing provides no volume, order-book or capacity-utilisation data to validate a recovery.
- EPS fell 36.7% YoY to ₹0.62, materially worse than the 29.6% PAT decline.
Earnings quality: includes non-operating other income
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