Paramount Comm. Q1 FY27 Results (NSE: PARACABLES)
Signal: Margin expansion
The read
The key inflection is operating-margin recovery to 5.73% from 2.55% YoY and 4.54% QoQ after the prior series bottomed at 1% in Q2FY26, but the 163.6% operating-profit growth is heavily aided by a low and non-comparable base after Valens was divested; PAT growth remained modest at 6.5% because other income fell 82.5% and finance costs rose 70.6%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹529.4 Cr | +17.3% | -7.7% |
| EBIT | ₹30.31 Cr | +163.6% | |
| Net profit | ₹19.7 Cr | +6.5% | |
| EPS | ₹0.64 | +4.9% | |
| EBIT margin | 5.73% |
P&L walk
Revenue increased 17.3% YoY to ₹529.40 crore, gross margin expanded 68bps to 24.51%, and operating profit rose 163.6% to ₹30.31 crore as operating costs remained broadly contained; PAT grew only 6.5% to ₹19.70 crore after other income fell 82.5% and finance costs rose 70.6%.
Segments
Wires & Cables drove the entire consolidated result with ₹529.40 crore revenue and ₹30.31 crore segment profit, while Pipes contributed zero revenue and zero result in Q1FY27 versus ₹0.52 crore revenue and a ₹0.23 crore loss in Q1FY26.
Key positives
- Consolidated revenue reached ₹529.40 crore, up 17.3% YoY, despite a 7.7% sequential decline from ₹573.31 crore.
- Operating margin recovered to 5.73%, up 318bps YoY and 119bps QoQ, reversing the 1%-3% margin range seen during Q2-Q3FY26.
- Employee and other expenses increased only 2.9% YoY to ₹95.02 crore, below revenue growth of 17.3%.
- Wires & Cables segment profit increased to ₹30.31 crore from ₹11.50 crore YoY, while segment assets rose 32.1% to ₹1,248.37 crore.
Key concerns
- Other income fell 82.5% YoY to ₹3.09 crore, limiting PAT growth to 6.5% despite a 163.6% increase in operating profit.
- Finance costs rose 70.6% YoY to ₹6.86 crore, increasing the drag below operating profit.
- Pipes generated zero revenue and zero segment result in Q1FY27 after reporting ₹0.52 crore revenue and a ₹0.23 crore loss in Q1FY26.
- Sequential momentum moderated: revenue declined 7.7% QoQ, PAT declined 4.0% and EPS declined 4.5%.
Research and educational content only. Not investment advice.