Man Infra Q1 FY27 Results (NSE: MANINFRA)
Signal: Margin expansion
The read
The quarter marks a margin inflection rather than a broad revenue recovery: consolidated revenue grew only 7.62% YoY, but gross margin expanded 1160bps to 83.30% and EBITDA margin rose 200bps to 30.34%; Real Estate revenue grew 34.95% while EPC declined 19.73%, and PAT growth was aided by a 202.25% rise in associate/JV profit. This follows two consecutive quarters of OPM contraction in Q3FY26 and Q4FY26, so the durability of the margin rebound and conversion of the enlarged real-estate asset base into revenue remain the key thesis variables.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹218.31 Cr | +7.62% | +30.50% |
| Net profit | ₹71.64 Cr | +28.92% | |
| EPS | ₹1.77 | +19.59% | |
| EBIT margin | 30.34% |
P&L walk
Consolidated revenue grew to ₹21,831.33 lakh, +7.62% YoY, while gross margin expanded to 83.30% from 71.70% and EBITDA margin to 30.34% from 28.34%; PAT reached ₹7,164.16 lakh, +28.92% YoY, helped by the ₹492.99 lakh share of associate/JV profit and lower other income dependence.
Segments
Real Estate drove consolidated revenue growth, with revenue up 34.95% YoY to ₹13,678.17 lakh and assets up 34.70% to ₹2,02,432.17 lakh, while EPC revenue fell 19.73% to ₹8,206.89 lakh but EPC result surged 84.22% to ₹4,702.80 lakh; the consolidated PAT of ₹7,164.16 lakh was 20.28% above standalone PAT of ₹5,956.27 lakh.
Key positives
- Consolidated gross margin expanded 1160bps YoY to 83.30% as material cost fell to 16.70% of revenue from 28.30%.
- Real Estate revenue increased 34.95% YoY to ₹13,678.17 lakh and Real Estate assets increased 34.70% YoY to ₹2,02,432.17 lakh, expanding the development platform.
- EPC segment result increased 84.22% YoY to ₹4,702.80 lakh despite EPC revenue declining 19.73%, indicating a materially better segment result conversion in the quarter.
- Share of profit from associates and joint ventures increased 202.25% YoY to ₹492.99 lakh, supporting consolidated PAT growth.
Key concerns
- Consolidated revenue growth of 7.62% YoY remains below the company’s recent scale, with EPC revenue down 19.73% YoY and the prior-results series showing revenue declines in each of the last four quarters.
- Finance costs increased 73.39% YoY to ₹531.25 lakh, materially faster than revenue growth.
- Real Estate segment result declined 25.65% YoY to ₹2,695.41 lakh despite 34.95% revenue growth, implying weaker segment profitability conversion.
- Basic EPS growth of 19.59% lagged PAT growth of 28.92%, consistent with dilution as paid-up equity share capital rose 4.90% YoY.
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