JTEKT India Q1 FY27 Results (NSE: JTEKTINDIA)
Signal: Steady quarter
The read
The key inflection is a sharp earnings-quality deterioration despite 26.85% YoY revenue growth: derived EBITDA rose 23.32% but margin contracted 15bps to 5.30%, while PAT fell 42.48% to ₹622.19 lakh, amplified by 55.65% lower other income and 9.09% higher share capital.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹717.98 Cr | +26.85% | -7.99% |
| EBIT | ₹9.88 Cr | -67.96% | |
| Net profit | ₹6.22 Cr | -42.48% | |
| EPS | ₹0.22 | -47.62% | |
| EBIT margin | 5.30% |
P&L walk
Standalone revenue increased 26.85% YoY to ₹71,798.38 lakh but EBITDA margin declined 15bps to 5.30%; lower other income of ₹393.35 lakh versus ₹886.83 lakh and higher depreciation of ₹2,830.58 lakh contributed to the 42.48% PAT decline to ₹622.19 lakh.
Key positives
- Revenue increased 26.85% YoY to ₹71,798.38 lakh, substantially above the company's 3-year sales CAGR of 11.1%.
- Gross margin expanded 288bps YoY to 12.24%, although the filing does not identify the driver.
- Employee benefit expenses grew 20.95% YoY, slower than revenue growth of 26.85%, reducing employee-cost intensity by 55bps to 11.27% of revenue.
Key concerns
- EBITDA margin declined 15bps YoY to 5.30% even as gross margin expanded 288bps, indicating that operating-cost growth absorbed much of the gross-margin benefit.
- PAT fell 42.48% YoY to ₹622.19 lakh because PBT before exceptional items declined 40.70% and other income fell 55.65% to ₹393.35 lakh.
- EPS declined 47.62% YoY to ₹0.22, lagging PAT growth because the rights issue increased the share base by 9.09% YoY.
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