Moschip Tech. Q1 FY27 Results (NSE: MOSCHIP)
Signal: Revenue declined
The read
Q1FY27 is a sharp reversal from the prior year's growth trajectory: consolidated revenue declined 14.3% YoY, and PAT fell 77.6% YoY, driven by a collapse in the Product Engineering Solutions segment, which swung to a loss. Employee costs as % of revenue surged to 76.8% (+759bps YoY), crushing margins. The standalone entity contributed negligible profit — the group's earnings are now concentrated in subsidiaries. This is a clear deceleration from the prior quarters' YoY growth; the company faces a structural profitability challenge, partly mitigated by higher other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹116.21 Cr | -14.29% | -24.16% |
| EBIT | ₹3.66 Cr | -68.14% | |
| Net profit | ₹2.45 Cr | -77.60% | |
| EPS | ₹0.13 | -77.19% | |
| EBIT margin | 1.93% |
P&L walk
Revenue declined 14.3% YoY to ₹11,621 lakh, driven by a sharp fall in Product Engineering Solutions (-44% YoY segment revenue). Employee costs rose to 76.8% of revenue (+759bps YoY), crushing EBITDA margin. PAT plunged 77.6% YoY to ₹245 lakh; other income of ₹224 lakh (+213% YoY) partially offset, but the core operating profit before tax fell 68% to ₹366 lakh.
Segments
Silicon Engineering Solutions segment revenue fell 4.8% YoY to ₹9,781 lakh, but its segment result rose 12.5% to ₹2,792 lakh, indicating margin improvement; Product Engineering Solutions segment revenue plunged 44.0% YoY to ₹1,841 lakh and swung from a profit of ₹240 lakh to a loss of ₹260 lakh — this is the primary drag on consolidated profitability.
Key positives
- Silicon Engineering Solutions segment result improved 12.5% YoY despite a 4.8% revenue decline, indicating better profitability within the core segment.
- Other income surged 213% YoY to ₹224 lakh, cushioning the operating profit decline.
- Auditors issued an unmodified report on both standalone and consolidated results.
Key concerns
- Consolidated revenue declined 14.3% YoY and 24.2% QoQ — a sharp reversal from the prior year's growth.
- Employee benefit expense absorbed 76.8% of revenue, up 759bps YoY, indicating a severe fixed-cost overhang.
- Product Engineering Solutions segment swung to a loss of ₹260 lakh against a profit of ₹240 lakh a year ago — revenue down 44% YoY.
- PAT fell 77.6% YoY and 69.2% QoQ; EPS dropped to ₹0.13 from ₹0.57.
- Finance costs more than doubled YoY (+128.5%), adding to the earnings pressure.
- Standalone pre-tax profit was just ₹20 lakh, down 97.8% YoY — the company's earnings are almost entirely from subsidiaries.
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