MIC Electronics Q1 FY27 Results (NSE: MICEL)
Signal: Margin pressure
The read
Consolidated Q1FY27 shows massive revenue growth (+276.6% YoY) from the new Electrical & Electronics spare parts trading segment, but margins compressed sharply (EBITDA margin -600bps to 10.3%) and PAT was zero; standalone LED business held stable with 33.4% EBITDA margin and marginal PAT growth, indicating the drag comes from the trading subsidiary.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.44 Cr | 276.6% | -77.1% |
| EBIT | ₹0.04 Cr | 5.4% | |
| Net profit | ₹0 Cr | N/A | |
| EPS | ₹0.09 | 28.6% | |
| EBIT margin | 10.3% |
P&L walk
Revenue jumped 276.6% YoY driven by LED Products and new Electrical & Electronics spare parts trading segment, but EBITDA margin contracted 600bps to 10.3% as cost of materials consumed grew to 10.0% of revenue vs 53.0% a year ago (offset by higher other expenses and inventory changes), leaving PAT at zero.
Segments
The consolidated revenue surge is led by the Electrical & Electronics, Spare parts trading segment which contributed ₹31.43 Cr (72% of total) with a modest profit of ₹0.38 Cr, while LED Products remained steady at ₹12.29 Cr; the new trading segment lifted consolidated revenue but dragged margin down.
Key positives
- Standalone revenue +5.9% YoY with EBITDA margin 33.4% indicates LED segment remains profitable.
- Consolidated revenue surged 276.6% YoY to ₹43.72 Cr, driven by new Electrical & Electronics, Spare parts trading segment which added ₹31.43 Cr.
- Finance costs decreased 16.8% YoY (consolidated) and 16.5% YoY (standalone), helping offset some margin pressure.
Key concerns
- Consolidated PAT is zero – no profit despite ₹43.72 Cr revenue, due to thin margins from the new trading segment.
- Consolidated EBITDA margin collapsed to 10.3% from 16.3% in Q1FY26, as other expenses and inventory changes outpaced revenue growth.
- The Electrical & Electronics trading segment contributed 72% of revenue but only 11.4% of segment profit, highlighting low-margin nature.
- QoQ revenue declined 77.1% (consolidated) and 85.9% (standalone), indicating seasonal or lumpy order patterns.
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