Pavna Industries Q1 FY27 Results (NSE: PAVNAIND)
Signal: Loss reversed
The read
The quarter marks an operating turnaround, with consolidated revenue at ₹9,187.69 lakh, +52.1% YoY, EBIT at ₹390.00 lakh, +115.5%, and PAT positive at ₹87.76 lakh; however, gross margin fell 1,866bps to 34.5% as input costs rose to 67.7% of revenue, while finance costs grew 123.6%, making margin recovery the central trajectory test.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹91.88 Cr | 52.1% | +68.7% |
| EBIT | ₹3.9 Cr | 115.5% | |
| Net profit | ₹0.86 Cr | N/A | |
| EPS | ₹0.06 | N/A | |
| EBIT margin | 8.8% |
P&L walk
Consolidated revenue increased to ₹9,187.69 lakh, +52.1% YoY, but gross margin fell to 34.5% from 53.1% as input costs rose to 67.7% of revenue from 50.1%; EBITDA still grew +55.4% to ₹808.00 lakh, EBIT rose +115.5% to ₹390.00 lakh, and PAT turned positive at ₹87.76 lakh from a ₹171.56 lakh loss.
Segments
The filing reports only one automotive operating segment; consolidated PAT of ₹87.76 lakh was slightly below standalone PAT of ₹88.74 lakh because the associate contributed a ₹28.70 lakh loss, partly offset by subsidiary earnings.
Key positives
- Consolidated revenue reached ₹9,187.69 lakh, +52.1% YoY, with standalone revenue at ₹8,754.30 lakh, +50.7% YoY.
- Consolidated EBIT increased 115.5% YoY to ₹390.00 lakh and PAT turned positive at ₹87.76 lakh from a ₹171.56 lakh loss.
- Employee and other operating expenses rose 28.2% YoY on a consolidated basis, materially slower than the 52.1% revenue growth, supporting improved operating conversion despite the absence of a qualifying operating-leverage signal.
- EPS at ₹0.06 tracked the consolidated PAT turnaround without a material dilution divergence.
Key concerns
- Consolidated gross margin compressed 1,866bps YoY to 34.5%, with input costs rising to 67.7% of revenue from 50.1%; the filing does not disclose the cause.
- Finance costs increased 123.6% YoY to ₹234.61 lakh, faster than revenue growth of 52.1%, constraining profit conversion.
- Sequential consolidated PAT fell 63.5% from ₹240.51 lakh to ₹87.76 lakh despite revenue rising 68.7% QoQ.
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