ISGEC Heavy Q1 FY27 Results (NSE: ISGEC)
Signal: Growth reaccelerated
The read
The key inflection is a sharp consolidated operating-quality deterioration despite 47.7% revenue growth: EBITDA declined 0.7% to ₹13,706 lakh and margin was reported at 6.9%, while PAT attributable to owners fell 82.9% to ₹895 lakh; the parent was healthier at 10.1% EBITDA margin and ₹9,202 lakh PAT, leaving the overseas ethanol platform and group structure as the thesis swing factors.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,980 Cr | 47.7% | -3.3% |
| EBIT | ₹72.26 Cr | -35.5% | |
| Net profit | ₹8.95 Cr | -82.9% | |
| EPS | ₹1.22 | -82.8% | |
| EBIT margin | 6.9% |
P&L walk
Revenue increased to ₹1,98,000 lakh (+47.7% YoY, -3.3% QoQ), but EBITDA was ₹13,706 lakh (-0.7% YoY) at a 6.9% margin, EBIT fell 35.5% to ₹7,226 lakh and PAT attributable to owners fell 82.9% to ₹895 lakh, with the Philippines ethanol loss of ₹6,247 lakh the main operating drag.
Segments
Manufacturing of Machinery & Equipment drove the group with ₹79,659 lakh revenue (+67.2% YoY) and ₹8,969 lakh result, while the Philippines ethanol plant dragged consolidated earnings with a ₹6,247 lakh loss, worsening from a ₹5,? Wait prior segment loss was ₹7,299 lakh; current loss narrowed 14.4% YoY but remains the largest drag.
Key positives
- Standalone revenue rose 57.9% YoY to ₹1,55,304 lakh, with Manufacturing of Machinery & Equipment revenue up 68.0% to ₹56,420 lakh and Industrial Projects revenue up 54.4% to ₹1,09,621 lakh.
- Standalone EBITDA increased 14.5% YoY to ₹15,665 lakh and standalone PAT rose 6.3% to ₹9,202 lakh, demonstrating stronger parent-level execution than the consolidated outcome.
- Consolidated Manufacturing of Machinery & Equipment result increased 37.8% YoY to ₹8,969 lakh, making it the strongest reported profit contributor.
Key concerns
- Consolidated revenue grew 47.7% YoY to ₹1,98,000 lakh but EBITDA fell 0.7% to ₹13,706 lakh, showing weak conversion of growth into operating profit.
- The Philippines ethanol plant reported a ₹6,247 lakh loss on ₹6,959 lakh revenue, while the Ethanol segment reported a ₹457 lakh loss, together creating a ₹6,704 lakh ethanol drag before group-level items.
- Standalone finance costs rose 106.5% YoY to ₹1,551 lakh despite EBITDA growth, limiting parent-level profit conversion.
- The large standalone-to-consolidated gap—PAT of ₹9,202 lakh versus ₹895 lakh attributable to owners—shows that subsidiaries and non-controlling interests materially determine shareholder earnings.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.