Permanent Magnet Q1 FY27 Results (NSE: PERMAGN)
Signal: Growth decelerated
The read
The operating trajectory improved on revenue, with Q1FY27 standalone revenue up 19% YoY to ₹63.23 crore, but profitability quality weakened: EBITDA grew only 7% and margin contracted 211bps to 19%, finance cost rose 96% to ₹1.12 crore, and consolidated PAT was reported as ₹0 versus standalone PAT of ₹6.25 crore; the next inflection depends on Relays commercialisation in H2FY27 and Quantum Magnetics Phase 2 commissioning in Q3FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹63.23 Cr | 18.1% | -5.0% |
| EBIT | ₹8.37 Cr | -9.9% | N/A |
| Net profit | ₹3.81 Cr | -38.1% | N/A |
| EPS | ₹4.42 | -38.4% | N/A |
| EBIT margin | 18.8% |
P&L walk
Consolidated revenue was ₹63.23 crore, up 19% YoY and down 5.0% QoQ, but consolidated EBIT was ₹8.37 crore and PAT was reported as ₹0, indicating a material drag below the parent operating result.
Segments
The principal divergence is between standalone PAT of ₹6.25 crore and consolidated PAT reported as ₹0, indicating that subsidiaries, including the previously identified Quantum Magnetics drag, are materially pulling down group earnings despite the parent's positive operating result.
Key positives
- Revenue from operations reached ₹63.23 crore, up 19% YoY, with management citing commercial volumes from the Alloys division after new capacity commissioning in Q4FY26.
- Standalone EBITDA increased 7% YoY to ₹11.93 crore and EBITDA margin remained 19%, supported by the favourable product mix cited by management.
- Quantum Magnetics Phase 2 capex covering block cutting, machining and surface treatment remains on track for commissioning in Q3FY27.
- The company is working toward commercial business for the Relays project in H2FY27.
Key concerns
- Standalone EBITDA growth of 7% lagged revenue growth of 19%, driving a 211bps YoY margin contraction to 19%.
- Finance cost increased 96% YoY to ₹1.12 crore, materially faster than revenue and weakening operating-profit conversion.
- Consolidated PAT was reported as ₹0 compared with standalone PAT of ₹6.25 crore, showing a material subsidiary drag on shareholder earnings.
- Depreciation increased 44% YoY to ₹3.11 crore, raising the burden from recent capacity investments without an accompanying fixed-asset disclosure.
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