Pennar Industrie Q1 FY27 Results (NSE: PENIND)
Signal: Steady quarter
The read
The quarter marks a margin-led improvement rather than a broad-based volume recovery: consolidated revenue grew only 2.9% YoY to ₹87,042 lakh, but EBITDA grew 13.5% to ₹10,679 lakh as gross margin expanded 128bps; the key risk is that ₹1,413 lakh of other income contributed 30.2% of PBT while standalone revenue fell 13.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹870.42 Cr | 2.9% | -5.9% |
| EBIT | ₹83.17 Cr | 10.5% | |
| Net profit | ₹35.41 Cr | 10.9% | |
| EPS | ₹2.62 | 10.5% | |
| EBIT margin | 12.3% |
P&L walk
Consolidated revenue grew 2.9% YoY to ₹87,042 lakh, gross margin expanded 128bps to 43.8%, EBITDA grew 13.5% to ₹10,679 lakh and PAT grew 10.9% to ₹3,541 lakh; PBT growth of 16.0% was helped by other income of ₹1,413 lakh, equal to 30.2% of PBT.
Segments
Custom designed building solutions & auxiliaries drove consolidated revenue at ₹50,779 lakh, +23.3% YoY, while diversified engineering revenue fell 14.6% to ₹38,527 lakh; diversified engineering nevertheless delivered the higher segment result of ₹6,823 lakh versus ₹4,156 lakh.
Key positives
- Consolidated EBITDA rose 13.5% YoY to ₹10,679 lakh versus revenue growth of 2.9%, with EBITDA margin reported at 12.3%.
- Gross margin expanded 128bps YoY to 43.8% as raw material and inventory cost declined to 56.2% of revenue from 57.5%.
- Custom designed building solutions & auxiliaries revenue grew 23.3% YoY to ₹50,779 lakh, materially outpacing consolidated revenue growth of 2.9%.
- The company received orders worth INR 944 Crore in the last three months, expected to be executed in coming quarters.
- Consolidated segment assets increased 19.1% YoY to ₹3,76,080 lakh, consistent with the 25.5% rise in depreciation to ₹2,362 lakh.
Key concerns
- Standalone revenue declined 13.1% YoY to ₹56,946 lakh and standalone PAT declined 4.2% to ₹2,165 lakh, showing that consolidated growth is being driven outside the parent entity.
- Consolidated revenue declined 5.9% sequentially and gross margin contracted 190bps sequentially to 43.8%, interrupting the recent Q4FY26 margin improvement.
- Employee benefits expense grew 16.0% YoY to ₹10,732 lakh, materially faster than consolidated revenue growth of 2.9%.
- Diversified engineering revenue declined 14.6% YoY to ₹38,527 lakh, although its segment result remained positive at ₹6,823 lakh.
Earnings quality: includes non-operating other income
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