Mahindra EPC Q1 FY27 Results (NSE: MAHEPC)
Signal: Revenue declined
The read
Q1FY27 was a weak quarter: revenue declined 12.7% YoY, gross margin compressed ~500bps, and the company swung to a net loss of ₹2.14 Cr from a ₹0.98 Cr profit a year ago. The loss is partly seasonal (Q4 is typically strongest) but the YoY deterioration and negative EBITDA signal a structural cost or demand issue. Recent order wins of ₹17.15 Cr announced in June 2026 may support future quarters but have not yet flowed through.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹54.16 Cr | -12.7% | -49.4% |
| Net profit | ₹-2.14 Cr | -318.4% | |
| EPS | ₹-0.77 | ||
| EBIT margin | -1.96% |
P&L walk
Revenue fell sharply YoY and QoQ; gross margin contracted 500bps YoY on higher raw material costs; operating loss driven by negative operating leverage and higher finance costs; net loss deepened vs small profit a year ago.
Key concerns
- Revenue declined 12.7% YoY to ₹54.16 Cr, the lowest quarterly revenue in recent quarters.
- Gross margin contracted ~500bps YoY to 55.6% as raw material costs rose to 44.4% of revenue from 39.4%.
- EBITDA turned negative at -1.96% margin vs +4.6% a year ago.
- Net loss of ₹2.14 Cr vs ₹0.98 Cr profit YoY, driven by operating loss and 40.8% higher finance costs.
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