Kernex Microsys. Q1 FY27 Results (NSE: KERNEX)
Signal: Margin expansion
The read
The trajectory remains sharply upward: Q1FY27 revenue of ₹50,358.23 lakh grew 800.4% YoY after Q1FY26 growth of 93.1%, while EBITDA margin expanded 1,760bps YoY to 32.4%; however, the 370bps QoQ margin contraction from Q4FY26's 41% and the ₹30.05 crore warranty provision show that execution quality and warranty economics are now the key confirmation points for the ₹3,641 crore order book.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹503.58 Cr | 800.4% | 97.9% |
| EBIT | ₹161.36 Cr | 1232.5% | |
| Net profit | ₹109.85 Cr | 1372.5% | |
| EPS | ₹65.37 | 1369.0% | |
| EBIT margin | 32.4% |
P&L walk
Consolidated revenue increased to ₹50,358.23 lakh (+800.4% YoY, +97.9% QoQ), EBITDA to ₹16,331 lakh (+1,162.1% YoY), and PAT to ₹10,984.57 lakh (+1,372.5% YoY); margin expanded 1,760bps YoY but contracted 370bps QoQ from the Q4FY26 peak, with the quarter absorbing a ₹30.05 crore warranty provision.
Key positives
- Consolidated revenue increased to ₹50,358.23 lakh, up 800.4% YoY and 97.9% QoQ, accelerating from 93.1% YoY growth in Q1FY26.
- EBITDA grew 1,162.1% YoY versus revenue growth of 800.4%, a +361.7 percentage-point gap, while EBITDA margin expanded 1,760bps YoY to 32.4%.
- Employee costs rose 111.5% YoY and depreciation rose 132.0%, both substantially below revenue growth, supporting operating leverage.
- The outstanding order book stood at ₹3,641 crore including GST, with the major CLW order 45% executed as of 13 August 2026.
- PAT of ₹10,984.57 lakh and EPS of ₹65.37 broadly tracked each other, indicating no material dilution impact from the 1,200 employee-option shares allotted.
Key concerns
- EBITDA margin declined 370bps QoQ from 41% in Q4FY26 to 32.4% in Q1FY27 after a ₹30.05 crore warranty provision was charged to other expenses.
- Finance costs increased 417.9% YoY to ₹1,322.77 lakh, materially faster than revenue and reducing operating-profit conversion into PBT.
- Trade receivables of ₹422.73 lakh have been outstanding for more than three years, with an ECL provision of ₹334.59 lakh, creating recoverability uncertainty.
Research and educational content only. Not investment advice.