NLC India Q1 FY27 Results (NSE: NLCINDIA)
Signal: Margin expansion
The read
The operating trajectory improved materially: consolidated revenue grew 23.3% YoY, EBITDA grew 32.4% and EBITDA margin expanded to 34.4%, the fourth consecutive quarter of YoY margin expansion after 24% in Q1FY26; however, PAT fell 45.3% to ₹436.33 crore despite PBT growth to ₹574.46 crore, making the post-operating regulatory/exceptional line and non-operating income of ₹151.1 crore the central earnings-quality risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,716.75 Cr | 23.3% | N/A |
| EBIT | ₹956.58 Cr | 39.5% | |
| Net profit | ₹436.33 Cr | -45.3% | |
| EPS | ₹3.49 | -42.3% | |
| EBIT margin | 34.4% |
P&L walk
Consolidated revenue rose to ₹4716.75 crore, +23.3% YoY, while EBITDA grew faster at +32.4% and margin reached 34.4%; EBIT grew +39.5%, but PAT declined 45.3% to ₹436.33 crore because the reported post-exceptional/regulatory outcome did not track the stronger operating profit.
Segments
The filing provides no segment table, but consolidated revenue of ₹4716.75 crore versus standalone revenue of ₹2871.73 crore shows that subsidiaries contribute materially to group sales; consolidated PAT of ₹436.33 crore was only ₹62.05 crore above standalone PAT of ₹374.28 crore, indicating limited incremental group profit conversion.
Key positives
- Consolidated revenue reached ₹4716.75 crore, +23.3% YoY, accelerating from +13.3% in Q1FY26.
- EBITDA rose 32.4% YoY to ₹1622.5 crore, 9.1 percentage points faster than revenue growth, while EBITDA margin expanded to 34.4% from 24% YoY.
- EBIT grew 39.5% YoY to ₹956.58 crore, ahead of both revenue and EBITDA growth.
- Standalone debt service coverage improved to 5.19x from 1.10x YoY, while consolidated DSCR improved to 3.55x from 1.13x YoY.
Key concerns
- Consolidated PAT fell 45.3% YoY to ₹436.33 crore despite PBT rising 48.5% YoY to ₹574.46 crore, indicating a substantial below-PBT regulatory/exceptional drag whose nature is not disclosed.
- Other income of ₹151.1 crore represented 26.3% of consolidated PBT; standalone other income of ₹119.74 crore represented 24.8% of standalone PBT, reducing the quality of reported earnings.
- Standalone PAT grew only 1.7% YoY to ₹374.28 crore despite standalone EBIT growth of 35.7% to ₹611.08 crore, showing weak conversion from operating profit to net profit.
- Consolidated debt-equity increased to 1.27x from 1.19x YoY, alongside paid-up debt of ₹28132.76 crore versus ₹23282.70 crore YoY.
Earnings quality: includes non-operating other income
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