HMT Q1 FY27 Results (NSE: HMT)
Signal: Loss widened
The read
The key inflection is revenue recovery to ₹2893 lakh, +17.8% YoY after the recent Q1FY26-Q4FY26 volatility, but earnings quality remains weak: gross margin collapsed 5240bps to 30.4%, EBITDA margin stayed negative at -34.8%, finance costs were ₹1770 lakh, and consolidated PAT remained a ₹-2921 lakh loss. Projects have turned profitable, but the ₹-1162 lakh Machine Tools loss and the group's completely eroded net worth prevent this from qualifying as a turnaround.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹28.93 Cr | 17.8% | N/A |
| EBIT | ₹-11.51 Cr | -13.8% | |
| Net profit | ₹-29.21 Cr | -5.2% | |
| EPS | ₹-0.82 | -5.1% | |
| EBIT margin | -34.8% |
P&L walk
Consolidated revenue increased to ₹2893 lakh, +17.8% YoY, but gross margin compressed to 30.4% from 82.8% as material, stock-in-trade and inventory costs rose to ₹2013 lakh from ₹422 lakh; EBITDA stayed negative at ₹-1008 lakh and finance costs of ₹1770 lakh absorbed the segment operating result.
Segments
Projects drove the consolidated improvement, with revenue rising to ₹1049 lakh from ₹60 lakh and segment result to ₹1101 lakh from ₹7 lakh, but Machine Tools remained the main drag with a ₹-1162 lakh result despite ₹1321 lakh revenue; the parent-level ₹1181 lakh profit is materially above consolidated PAT of ₹-2921 lakh.
Key positives
- Consolidated revenue was ₹2893 lakh, +17.8% YoY, reversing the prior Q1FY26 decline of 21.9% and supported by Projects revenue of ₹1049 lakh versus ₹60 lakh.
- Projects segment result improved to ₹1101 lakh from ₹7 lakh, while Others delivered ₹1286 lakh versus ₹676 lakh.
- Employee benefits and other expenses were ₹3225 lakh, down 0.7% YoY despite revenue growth of 17.8%, providing some fixed-cost containment.
Key concerns
- Gross margin compressed 5240bps YoY to 30.4% as material, stock-in-trade and inventory-related costs rose to ₹2013 lakh from ₹422 lakh; the filing does not disclose the driver.
- Consolidated EBITDA remained negative at ₹-1008 lakh and PAT at ₹-2921 lakh despite 17.8% revenue growth, showing that the top-line recovery has not converted into earnings.
- Machine Tools generated a ₹-1162 lakh segment loss on ₹1321 lakh revenue, more than offsetting the ₹1101 lakh Projects result.
- Finance costs of ₹1770 lakh exceeded the total segment result of ₹1349 lakh, keeping the group loss-making.
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