Powerica Ltd Q1 FY27 Results (NSE: POWERICA)
Signal: Growth reaccelerated
The read
The growth trajectory remains strong at revenue of ₹780.1 crore, up 26.70% YoY, supported by the DG-set order book of approximately ₹1,700 crore and wind expansion, but profitability has softened as gross margin fell 330bps to 33.50% and EBITDA margin fell 70bps to 13.60%; the key inflection is whether price revisions reverse the commodity-led pressure after management flagged a relatively subdued H1 FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹780.1 Cr | +26.70% | N/A |
| Net profit | ₹64.3 Cr | +27.30% | |
| EBIT margin | 13.60% |
P&L walk
Revenue increased 26.70% YoY to ₹780.1 crore, while gross profit grew 15.20% to ₹261.3 crore and EBITDA grew 20.40% to ₹106.3 crore; margin compression reflects stated commodity inflation and delayed input-cost pass-through, while PAT grew 27.30% to ₹64.3 crore.
Segments
The Wind Power business is the momentum driver: it contributed 18.6% of revenue with a 48.6% EBITDA margin versus 46.5% YoY, while the larger Generator Set business contributed 81.4% of revenue but had only a 5.6% EBITDA margin versus 7.1% YoY; MSLG execution was also affected by temporary logistics challenges.
Key positives
- Revenue reached ₹780.1 crore, growing 26.70% YoY, while the Cummins-powered DG-set order book stood at approximately ₹1,700 crore, including approximately ₹900 crore linked to data centres.
- PAT grew 27.30% YoY to ₹64.3 crore despite EBITDA margin declining 70bps to 13.60%, indicating bottom-line growth remained ahead of EBITDA growth.
- Wind Power contributed 18.6% of revenue and delivered a 48.6% EBITDA margin, up 210bps YoY from 46.5%, supported by seasonality and the addition of 51.3 MW in February 2026.
- The company secured a 100 MW SECI wind project at ₹3.85 per unit and a 50 MW GUVNL wind project at ₹3.51 per unit, although the latter's LOA is awaited.
Key concerns
- Gross margin fell 330bps YoY to 33.50% as commodity price inflation was not fully passed through because of a lag in price revisions.
- Generator Set segment EBITDA margin declined 150bps YoY to 5.6%, and this segment represents 81.4% of revenue, making near-term group margins sensitive to DG-set execution and pricing.
- Management expects H1 FY27 to remain relatively subdued, while MSLG execution was impacted by temporary logistics challenges in transporting and installing large engine sets.
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