Mangal Electrica Q1 FY27 Results (NSE: MEIL)
Signal: Margin expansion
The read
Q1FY27 continues strong revenue trajectory (+40% YoY) with margin inflection from input cost tailwind and lower finance cost; PAT doubled but EPS grew half as fast due to IPO dilution; change in depreciation method added ₹1.30 Cr to profit, so quality adjusted for that one-off.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹125.83 Cr | 40.34% | -29.86% |
| EBIT | ₹10.1 Cr | 74.42% | |
| Net profit | ₹7.52 Cr | 101.61% | |
| EPS | ₹2.72 | 49.45% | |
| EBIT margin | 8.02% |
P&L walk
Standalone-only filing; consolidated not applicable.
Segments
Manufacturing segment dominates with ₹114 Cr revenue (90.6% of total) and ₹10.26 Cr result; EPC segment contributed ₹11.82 Cr revenue and ₹0.87 Cr result, both growing but EPC result ratio is lower margin (7.4%).
Key positives
- Revenue grew 40% YoY to ₹125.83 Cr, sustaining high growth momentum.
- Gross margin expanded 417bps YoY to 24.87% due to raw material cost ratio declining to 75.13% (input tailwind).
- EBITDA margin expanded 276bps YoY to 11.51% despite seasonally lower QoQ revenue.
- Finance cost down ~80% YoY post IPO debt repayment.
- Net profit doubled (+101.6% YoY) to ₹7.52 Cr.
Key concerns
- EPS growth (49.5%) lagged PAT growth (101.6%) – significant equity dilution from IPO.
- Depreciation method change (WDV→SLM) added ₹1.30 Cr to profit – about 17% of net profit – benefiting near-term earnings but quality adjusted.
- QoQ revenue dropped 30% indicating strong seasonality (Q4 typically includes year-end billing).
- Other income (₹1.81 Cr) contributed ~24% of PBT – elevated from IPO proceeds interest; core operating earnings quality must be viewed net of this.
Research and educational content only. Not investment advice.