Kavveri Defence Q1 FY27 Results (NSE: KAVDEFENCE)
Signal: Slipped to loss
The read
The trajectory has deteriorated for a fourth consecutive quarter on margin: consolidated revenue fell 63.1% YoY to ₹144.33 lakh, gross margin compressed 2,790bps to 36.6%, and PAT swung to a ₹121.10 lakh loss; the key inflection is the reversal from Q1FY26's ₹107.78 lakh profit, compounded by a qualified consolidation that omits seven subsidiaries.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1.44 Cr | -63.1% | +56.4% |
| Net profit | ₹-1.21 Cr | -212.4% | |
| EPS | ₹-0.2 | -164.5% |
P&L walk
Consolidated revenue of ₹144.33 lakh fell 63.1% YoY, gross margin compressed 2,790bps to 36.6% as raw-material cost rose to 63.9% of revenue from 31.7%, and PAT swung to a ₹121.10 lakh loss from ₹107.78 lakh profit; the ₹37.18 lakh other-income contribution did not offset the operating cost base.
Segments
The company reports a single segment—radio-frequency products and antennas to defence and other wireless technologies; the standalone loss of ₹152.20 lakh exceeded the consolidated loss of ₹121.10 lakh by ₹31.10 lakh, implying subsidiaries reduced the group loss, but the consolidation is qualified and excludes seven subsidiaries.
Key positives
- Consolidated revenue of ₹144.33 lakh recovered 56.4% QoQ from ₹92.27 lakh, although it remained 63.1% below the year-ago level.
- Consolidated loss of ₹121.10 lakh was ₹31.10 lakh lower than the standalone loss of ₹152.20 lakh, suggesting subsidiaries partially cushioned the parent-company loss.
Key concerns
- Gross margin compressed 2,790bps YoY to 36.6% as raw-material cost rose to 63.9% of revenue from 31.7%; the filing does not disclose the cause or evidence of pass-through.
- Employee and other expenses totaled ₹210.52 lakh, or 145.9% of revenue, versus ₹188.38 lakh, or 48.1%, YoY, showing severe fixed-cost absorption as sales declined.
- Consolidated PAT swung to a ₹121.10 lakh loss from ₹107.78 lakh profit YoY, while other income increased to ₹37.18 lakh from ₹6.51 lakh and still did not prevent the loss.
- Revenue has declined YoY for three consecutive quarters in the available series, from ₹7.01 crore in Q3FY25 to ₹144.33 lakh in Q1FY27.
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