HBL Engineering Q1 FY27 Results (NSE: HBLENGINE)
Signal: Growth decelerated
The read
The key inflection is a sharp sequential recovery from Q4FY26, with consolidated revenue up 5.6% and PAT up 71.1%, but the trajectory remains mixed because Q1FY27 EBITDA fell 20.9% YoY to ₹167.3 crore and margin was 26.2%; Electronics growth is not converting into profit and Defence & Aviation volumes remain weak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹638.03 Cr | 6.0% | 5.6% |
| EBIT | ₹154.87 Cr | -22.6% | N/A |
| Net profit | ₹109.08 Cr | -23.9% | N/A |
| EPS | ₹3.95 | -23.4% | N/A |
| EBIT margin | 26.2% |
P&L walk
Revenue increased 6.0% YoY to ₹638.03 crore, but EBITDA declined 20.9% to ₹167.3 crore and EBITDA margin was 26.2%; the deterioration was concentrated in Defence & Aviation Batteries and Electronics profitability, while lower finance cost and other income partly supported PBT.
Segments
Electronics was the largest growth contributor, with revenue up 26.0% YoY to ₹227.31 crore but segment result down 20.7% to ₹70.73 crore; Defence & Aviation Batteries was the main drag, with revenue down 48.5% and result down 72.4%, while Industrial Batteries revenue rose 7.3% but result fell 1.0%.
Key positives
- Consolidated revenue reached ₹638.03 crore, +6.0% YoY and +5.6% QoQ, with Electronics revenue up 26.0% YoY to ₹227.31 crore.
- Segment assets increased 31.5% YoY to ₹3133.97 crore while depreciation increased only 7.7% YoY to ₹12.43 crore, producing a clean depreciation-to-capex cross-check.
- Finance cost declined 14.8% YoY to ₹5.41 crore, cushioning the operating profit decline.
- EPS of ₹3.95 declined 23.4% YoY versus PAT attributable decline of 23.9%, indicating no material dilution signal.
Key concerns
- EBITDA declined 20.9% YoY to ₹167.3 crore and EBIT declined 22.6% to ₹154.87 crore despite revenue growth of 6.0%, showing negative operating conversion.
- Electronics segment result fell 20.7% YoY to ₹70.73 crore despite 26.0% revenue growth, indicating substantial margin pressure in the fastest-growing segment.
- Defence & Aviation Batteries revenue fell 48.5% YoY to ₹37.93 crore and segment result fell 72.4% to ₹9.10 crore.
- Raw material cost increased to 56.4% of consolidated revenue from 55.6% YoY and 49.2% sequentially, contributing to gross-margin compression.
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