Pakka Q1 FY27 Results (NSE: PAKKA)
Signal: Loss reversed
The read
The key inflection is the return to positive earnings after Q1FY26 and Q2FY26 losses: consolidated revenue accelerated to +43.0% YoY, EBITDA grew +141.2% and margin expanded 767bps to 14.9%, but the recovery is not yet fully de-risked because other income was 26.3% of PBT and the overseas subsidiary's ₹3,178.62 lakh CWIP remains subject to a qualified conclusion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹117.19 Cr | 43.0% | N/A |
| EBIT | ₹13.27 Cr | 324.0% | |
| Net profit | ₹5.89 Cr | N/A | |
| EPS | ₹1.29 | N/A | |
| EBIT margin | 14.9% |
P&L walk
Consolidated revenue increased to ₹117.19 Cr, EBITDA rose 141.2% to ₹17.51 Cr and EBITDA margin expanded to 14.9% from 7.23%, driving EBIT up 324.0% to ₹13.27 Cr and PAT into a ₹5.89 Cr profit from a ₹1.53 Cr loss; other income contributed 26.3% of PBT.
Key positives
- Consolidated revenue reached ₹117.19 Cr, up 43.0% YoY, reversing the recent decline from Q2FY26 revenue of ₹76.32 Cr and Q3FY26 revenue of ₹96.58 Cr.
- EBITDA rose 141.2% YoY to ₹17.51 Cr and EBITDA margin expanded 767bps to 14.9%, materially improving from 2.27% in Q2FY26.
- PAT turned positive at ₹5.89 Cr from a ₹1.53 Cr loss and EPS turned positive at ₹1.29 from -₹0.39.
- FY26 operating cash flow was 7,512.52 lakh, up from 1,115.64 lakh in FY25, despite a substantial investment outflow of 36,721.67 lakh.
Key concerns
- Other income of ₹2.21 Cr represented 26.3% of consolidated PBT of ₹8.4 Cr, reducing the quality of the operating-profit-led turnaround.
- The overseas subsidiary's project remains uncertain, with ₹3,178.62 lakh of CWIP subject to questions over resumption and recoverability.
- The approved restart of Pakka Inc. requires up to USD 1 million, adding funding and execution risk while the subsidiary has a working-capital deficit and depends on related-party and shareholder support.
- FY26 revenue declined to 35,629.31 lakh from 40,604.08 lakh and FY26 PAT fell to 650.31 lakh from 3,751.98 lakh, so the Q1 recovery must persist before the annual trajectory is repaired.
Earnings quality: includes non-operating other income
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