The Hi-Tech Gear Q1 FY27 Results (NSE: HITECHGEAR)
Signal: Growth reaccelerated
The read
The quarter marks a sequential margin recovery, with EBITDA margin rising 56bps QoQ to 11.6%, but the trajectory remains fragile: consolidated PBT fell 39.2% YoY and PAT fell 20.7% YoY even as revenue grew 10.3%, while the recent multi-quarter margin arc remains below the 12.1%-15.5% range seen in Q1-Q4FY25.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹237.69 Cr | +10.3% | +6.3% |
| EBIT | ₹10.27 Cr | -2.3% | |
| Net profit | ₹4.76 Cr | -20.7% | |
| EPS | ₹2.53 | -20.7% | |
| EBIT margin | 11.6% |
P&L walk
Revenue increased to ₹2,376.88 million, +10.3% YoY and +6.3% QoQ, while EBITDA margin improved to 11.6% from 9.8% QoQ but remained 53bps below the year-ago level; PBT declined 39.2% YoY and PAT declined 20.7% YoY.
Segments
Canada was the main sequential growth driver, with revenue up 27.1% QoQ and segment result rising to ₹4.83 million from ₹1.86 million, while India revenue declined 3.5% QoQ and Others remained loss-making at ₹2.64 million.
Key positives
- Consolidated revenue reached ₹2,376.88 million, +10.3% YoY and +6.3% QoQ, reversing the weak Q3FY26 trend.
- Gross margin expanded 330bps YoY to 53.4% as raw material cost declined to 46.6% of revenue from 49.9%.
- Canada revenue grew 15.4% YoY and 27.1% QoQ, while its segment result improved to ₹4.83 million from ₹1.86 million QoQ.
- EBITDA margin recovered 56bps QoQ to 11.6%, and EPS tracked PAT without evidence of dilution.
Key concerns
- Consolidated PBT declined 39.2% YoY to ₹63.86 million and PAT declined 20.7% YoY to ₹47.58 million despite 10.3% revenue growth.
- EBITDA margin remained 53bps below the year-ago 12.1%, extending the margin contraction seen through Q3FY26.
- Employee benefits expense rose 18.9% YoY to ₹460.86 million, materially faster than revenue growth.
- India revenue declined 3.5% QoQ and the Others segment remained loss-making at ₹2.64 million.
Research and educational content only. Not investment advice.