Lokesh Mach. Q1 FY27 Results (NSE: LOKESHMACH)
Signal: Steady quarter
The read
The operating trajectory improved YoY through a sharp Components turnaround, but the quality of the quarter is mixed: revenue grew 15.42% while operating margin fell 61bps to 17.32%, and PAT growth of 121.78% translated into only 113.04% EPS growth after substantial equity and warrant issuance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹55.46 Cr | +15.42% | -6.56% |
| Net profit | ₹1.01 Cr | +121.78% | |
| EPS | ₹0.49 | +113.04% | |
| EBIT margin | 17.32% |
P&L walk
Revenue of ₹5,545.74 lakh grew 15.42% YoY but declined 6.56% QoQ; gross margin expanded 250bps YoY to 54.83% alongside a ₹972.26 lakh inventory release, while operating margin contracted 61bps to 17.32% as employee and manufacturing expenses grew 14.68% and 25.95% respectively; PAT increased 121.78% to ₹101.01 lakh, but EPS growth of 113.04% lagged PAT because of the preferential share and warrant issuance.
Segments
Components was the clear growth engine: revenue increased 693.72% YoY to ₹1,555.37 lakh and segment PBIT rose to ₹214.91 lakh from ₹10.52 lakh, while Machinery revenue declined 13.25% to ₹4,022.03 lakh and PBIT fell 16.73% to ₹515.05 lakh.
Key positives
- Components revenue grew 693.72% YoY to ₹1,555.37 lakh and its PBIT increased to ₹214.91 lakh from ₹10.52 lakh.
- Gross margin expanded 250bps YoY to 54.83%, helped by a ₹972.26 lakh inventory change, although the filing does not disclose whether this is sustainable.
- PAT increased 121.78% YoY to ₹101.01 lakh, with the statutory auditor issuing an unmodified limited-review conclusion.
Key concerns
- Machinery revenue declined 13.25% YoY to ₹4,022.03 lakh and Machinery PBIT fell 16.73% to ₹515.05 lakh, showing that the core division remains under pressure.
- Operating margin contracted 61bps YoY to 17.32% because manufacturing and other expenses grew 25.95%, faster than revenue growth of 15.42%.
- Finance costs rose 5.73% YoY to ₹464.82 lakh and remained a major deduction from segment PBIT of ₹729.96 lakh.
- EPS growth of 113.04% lagged PAT growth of 121.78% after the issue of 13,00,000 equity shares and 27,77,919 warrants.
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