Likhitha Infra. Q1 FY27 Results (NSE: LIKHITHA)
Signal: Revenue declined
The read
The key inflection is sequential rather than annual: consolidated EBITDA margin recovered to 12.89% from 5.97% QoQ as contract execution expenses fell 37.38% and work-in-progress movements improved, but revenue still declined 30.51% YoY, gross margin compressed 407bps to 71.85%, finance costs rose 56.07%, and PAT fell 47.01%; the four-quarter margin contraction visible through FY26 has not yet reversed on a YoY basis.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹85.06 Cr | -30.51% | -29.53% |
| EBIT | ₹9.36 Cr | -45.39% | |
| Net profit | ₹7.31 Cr | -47.01% | |
| EPS | ₹1.85 | -47.29% | |
| EBIT margin | 12.89% |
P&L walk
Consolidated revenue declined to ₹8,505.85 lakh, -30.51% YoY and -29.53% QoQ; gross margin compressed 407bps to 71.85% as raw-material cost rose to 28.15% of revenue, while EBITDA margin fell 274bps YoY to 12.89% despite a 692bps sequential recovery.
Key positives
- EBITDA margin recovered to 12.89% from 5.97% QoQ, a 692bps sequential improvement, supported by contract execution expenses falling 37.38% QoQ and a favourable work-in-progress movement.
- EPS of ₹1.85 tracked attributable PAT decline of 47.15% YoY, with no material dilution signal from the PAT-to-EPS cross-check.
- Other income of ₹133.89 lakh was broadly stable YoY at +2.93%, so the PAT decline was primarily operational rather than caused by a reversal of non-operating income.
Key concerns
- Revenue fell 30.51% YoY to ₹8,505.85 lakh, extending the contraction seen in the recent quarterly series and indicating weak project execution.
- Gross margin compressed 407bps YoY to 71.85% as raw-material cost rose to 28.15% of revenue from 24.08%; revenue also declined, so the pricing-power test is not applicable and the filing does not disclose the cause.
- Finance costs rose 56.07% YoY to ₹42.78 lakh despite lower revenue, increasing the risk that financing drag persists if execution does not recover.
- PAT fell 47.01% YoY to ₹731.12 lakh even after the sequential margin recovery, showing that the annual earnings trajectory remains weak.
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