Innovana Think. Q1 FY27 Results (NSE: INNOVANA)
Signal: Margin pressure
The read
The key inflection is a sharp margin reset: consolidated revenue grew 21.4% YoY to ₹3,807.02 lakh, but EBITDA margin fell 2291bps to 27.2% after digital advertising expense rose 288.9% YoY to ₹1,114.88 lakh; the recent margin contraction has now extended from Q2FY26 through Q1FY27, while PAT is additionally weakened by other income contributing 55.9% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹38.97 Cr | 21.4% | +16.8% |
| EBIT | ₹8.42 Cr | -49.1% | |
| Net profit | ₹5.62 Cr | -57.2% | |
| EPS | ₹2.68 | -58.1% | |
| EBIT margin | 27.2% |
P&L walk
Consolidated revenue increased to ₹3,807.02 lakh, +21.4% YoY and +16.8% QoQ, but EBITDA fell to ₹1,060.99 lakh, -43.9% YoY, as digital advertising expense rose 288.9% YoY to ₹1,114.88 lakh and employee cost rose 79.9%; PAT attributable to owners fell 56.6% to ₹562.21 lakh, with other income of ₹374.26 lakh equal to 55.9% of PBT.
Segments
Astro Services and Game Studio drove consolidated growth with revenue of ₹1,619.38 lakh, +232.4% YoY, while Software Product Sales declined 15.9% YoY to ₹1,687.14 lakh; Gym and Fitness turned profitable at ₹70.36 lakh versus a ₹199.05 lakh loss YoY, but Astro segment result fell 36.2% to ₹31.06 lakh despite its revenue surge.
Key positives
- Consolidated revenue reached ₹3,807.02 lakh, +21.4% YoY and +16.8% QoQ.
- Astro Services and Game Studio revenue increased 232.4% YoY to ₹1,619.38 lakh, providing the main consolidated growth engine.
- Gym and Fitness moved from a ₹199.05 lakh segment loss YoY to a ₹70.36 lakh segment profit, with management attributing higher recent costs to GST-related non-availability of ITC rather than operational inefficiency.
- The limited review report was unmodified, and the company reported no deviation or variation in use of preferential-issue proceeds.
Key concerns
- EBITDA declined 43.9% YoY to ₹1,060.99 lakh and EBITDA margin contracted 2291bps to 27.2%.
- Digital advertising expense increased 288.9% YoY to ₹1,114.88 lakh, equal to 29.3% of revenue versus 9.0% YoY, materially depressing operating profitability.
- Software Product Sales revenue declined 15.9% YoY to ₹1,687.14 lakh, while its segment result declined 42.5% to ₹826.54 lakh.
- Consolidated PAT declined 56.6% YoY to ₹562.21 lakh despite revenue growth, and standalone revenue also declined 19.1% YoY to ₹951.65 lakh.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.