Indian Energy Ex Q1 FY27 Results (NSE: IEX)
Signal: Margin expansion
The read
7th consecutive quarter of YoY PAT growth; OPM expanded 100bps YoY to 86%, driven by operating leverage as revenue growth (+11.4% YoY) outpaced employee cost (+14.8%) and other expenses (+7.3%). Revenue growth decelerated to +11.4% (from +22.5% in Q4FY26), but margin resilience and higher associate profit kept bottom-line growth healthy.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1.58 Cr | 11.4% | -9.5% |
| EBIT | ₹1.69 Cr | 11.4% | |
| Net profit | ₹1.35 Cr | 11.6% | |
| EPS | ₹1.52 | 11.8% | |
| EBIT margin | 86% |
P&L walk
Revenue growth decelerated to +11.4% YoY (vs +22.5% in Q4FY26), but OPM expanded 100bps YoY to 86% due to controlled other expenses (+7.3% YoY vs revenue growth). PAT grew +11.6% YoY, aided by higher share of profit from associate IGX.
Key positives
- OPM expanded 100bps YoY to 86% — 6th quarter of YoY margin expansion in last 7.
- Consolidated PAT grew +11.6% YoY to ₹134.76 Cr; 7th straight YoY PAT growth.
- Share of profit from associate IGX rose +15.5% YoY to ₹7.72 Cr, contributing 5.7% of pre-tax profit.
- No exceptional items; clean P&L.
- Stable equity base — EPS +11.8% YoY, in line with PAT.
Key concerns
- Revenue growth decelerated to +11.4% YoY from +22.5% in Q4FY26, indicating slowing volume momentum.
- Other income surged 103% QoQ to ₹44.93 Cr (largely treasury income), masking operating profit deceleration.
- Employee cost grew +14.8% YoY, faster than revenue; margin expansion came from lower other expenses.
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