PPAP Automotive Q1 FY27 Results (NSE: PPAP)
Signal: Loss reversed
The read
The operating recovery is real but not yet clean: consolidated revenue rose 33.6% YoY and EBITDA margin expanded 470bps to 9.3% as employee costs grew only 5.9%, yet gross margin compressed 330bps on higher material intensity and PAT of ₹86.55 lakh relied heavily on ₹210.79 lakh of other income while subsidiaries lost ₹152.96 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹156.38 Cr | +33.6% | -10.4% |
| EBIT | ₹5.46 Cr | +0.7% | |
| Net profit | ₹0.87 Cr | N/M | |
| EPS | ₹0.61 | N/M | |
| EBIT margin | 9.3% |
P&L walk
Consolidated revenue increased to ₹15,637.86 lakh, +33.6% YoY, while EBITDA rose to ₹1,451 lakh and margin expanded to 9.3%; however, PAT of ₹86.55 lakh was held back by subsidiary losses and depended materially on other income of ₹210.79 lakh.
Segments
The company reports one automotive-components segment, but subsidiaries materially drag the group: five subsidiaries contributed ₹1,634.65 lakh of revenue and a combined net loss of ₹152.96 lakh, leaving consolidated PAT of ₹86.55 lakh below standalone PAT of ₹230.10 lakh.
Key positives
- Consolidated revenue increased to ₹15,637.86 lakh, +33.6% YoY, reversing the prior Q1FY26 revenue decline.
- EBITDA grew to ₹1,451 lakh, approximately +167.5% YoY versus revenue growth of 33.6%, while EBITDA margin expanded 470bps to 9.3%.
- Employee benefits rose only 5.9% YoY to ₹3,031.96 lakh and finance costs rose 1.1% to ₹430.48 lakh, supporting the margin recovery.
- Standalone EBITDA margin reached 10.7%, up 410bps YoY, indicating the parent manufacturing operation performed better than the consolidated group.
Key concerns
- Gross margin compressed 330bps YoY to 40.6% as raw material cost increased to 59.4% of revenue from 56.1%; the filing does not disclose a driver or evidence of pass-through.
- Consolidated PAT was only ₹86.55 lakh despite EBITDA of ₹1,451 lakh, and fell 98.1% QoQ from ₹4,544.51 lakh.
- Five subsidiaries reported combined revenue of ₹1,634.65 lakh but a net loss of ₹152.96 lakh, dragging consolidated PAT below standalone PAT by ₹143.55 lakh.
- Consolidated revenue declined 10.4% QoQ from ₹17,458.22 lakh, so the YoY recovery has not yet established sequential momentum.
Earnings quality: includes non-operating other income
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