K.P. Energy Q1 FY27 Results (NSE: KPEL)
Signal: Margin pressure
The read
The growth engine remains infrastructure development, with consolidated revenue up 136.65% YoY to ₹51,946.46 lakh, but Q1FY27 marks a sharp margin setback: gross margin contracted 1647bps to 19.28% and EBIT margin contracted 815bps to 11.94% as raw-material cost reached 80.72% of revenue; PAT growth of 2.58% was therefore far weaker than the 19.89% rise in segment PBIT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹519.46 Cr | +136.65% | -17.78% |
| EBIT | ₹52.87 Cr | +19.89% | |
| Net profit | ₹26.08 Cr | +2.58% | |
| EPS | ₹3.85 | +1.05% | |
| EBIT margin | 11.94% |
P&L walk
Consolidated revenue rose to ₹51,946.46 lakh, +136.65% YoY, led by infrastructure development, but raw-material intensity increased to 80.72% from 64.26%, compressing gross margin to 19.28% and EBIT margin to 11.94%; PAT still rose 2.58% to ₹2,607.80 lakh after higher finance costs and tax.
Segments
Infrastructure Development drove ₹50,475.07 lakh of revenue and ₹4,725.06 lakh of segment PBIT, while Sale of Power was the faster sequential contributor with revenue up 109.67% QoQ and PBIT up 362.23% QoQ; consolidated and standalone PAT remained close at ₹2,607.80 lakh and ₹2,595.17 lakh.
Key positives
- Consolidated revenue increased 136.65% YoY to ₹51,946.46 lakh, led by Infrastructure Development revenue growth of 142.36% to ₹50,475.07 lakh.
- Sale of Power revenue rose 16.14% YoY to ₹1,177.60 lakh and its segment PBIT increased 32.41% YoY to ₹532.00 lakh; sequentially, revenue grew 109.67% and PBIT 362.23%.
- Segment assets increased 128.92% YoY to ₹267,570.96 lakh while depreciation rose 66.30% to ₹917.65 lakh, a clean depreciation-to-asset-base check.
Key concerns
- Gross margin compressed 1647bps YoY to 19.28% as raw-material cost increased to 80.72% of revenue from 64.26%; the filing does not disclose the driver.
- Revenue grew 136.65% YoY while segment PBIT grew only 19.89%, reducing EBIT margin to 11.94% from 20.09%.
- Finance costs increased 64. as?% YoY to ₹1,543.01 lakh, limiting conversion of operating growth into PAT.
- PAT rose 2.58% while EPS rose only 1.05%, with paid-up equity capital increasing to ₹3,389.90 lakh from ₹3,345.35 lakh.
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