Knowledge Marine Q1 FY27 Results (NSE: KMEW)
Signal: Margins at cyclical peak
The read
The main inflection is a return to sharply expanding margins after Q4FY26's 27% OPM: consolidated EBITDA margin reached 63.6%, +2,133bps YoY and +3,613bps QoQ, with revenue growth accelerating to 138.1%; however, the quarter's ₹6,274.68 lakh PAT includes ₹320.51 lakh other income and EPS growth of 146.1% materially lagged PAT growth because of dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.41 Cr | +138.1% | +70.7% |
| EBIT | ₹67.19 Cr | +306.9% | |
| Net profit | ₹62.75 Cr | +466.1% | |
| EPS | ₹25.67 | +146.1% | |
| EBIT margin | 63.6% |
P&L walk
Consolidated revenue increased to ₹11,541.37 lakh, +138.1% YoY and +70.7% QoQ, while EBITDA rose to ₹7,341.40 lakh and margin expanded to 63.6% from 42.3% YoY; EBIT reached ₹6,718.94 lakh, finance cost rose 38.4% YoY, and PAT rose to ₹6,274.68 lakh despite a higher share count.
Segments
Dredging and ancillary services drove the quarter with ₹10,441.47 lakh revenue, +287.2% YoY, and ₹7,477.65 lakh EBITDA, +682.0% YoY; shipbuilding added ₹2,122.15 lakh revenue and ₹342.83 lakh EBITDA, while Bahrain moved to a ₹15.60 lakh loss from ₹727.41 lakh profit YoY.
Key positives
- Consolidated revenue reached ₹11,541.37 lakh, +138.1% YoY and +70.7% QoQ, reversing the prior quarter's ₹6,761.73 lakh revenue base.
- EBITDA grew to ₹7,341.40 lakh, +258.1% YoY versus revenue growth of 138.1%, while EBITDA margin expanded 2,133bps to 63.6%.
- Dredging and ancillary services EBITDA rose 682.0% YoY to ₹7,477.65 lakh, and shipbuilding contributed ₹342.83 lakh EBITDA versus no comparable prior-year segment result.
- Employee costs grew 79.7% YoY and other expenses grew 24.7%, both materially below the 138.1% revenue growth, supporting operating cost absorption.
Key concerns
- Basic EPS rose 146.1% YoY to ₹25.67, materially below 466.1% PAT growth, with shares increasing 13.9% to 24,600,000.
- Bahrain reported a ₹15.60 lakh segment EBITDA loss versus ₹727.41 lakh profit YoY, showing continued geographic volatility.
- Other income increased 474.1% YoY to ₹320.51 lakh and contributed to the bottom line, although operating profit remained the dominant earnings driver.
Research and educational content only. Not investment advice.