Pradeep Metals Q1 FY27 Results (NSE: PRADPME)
Signal: Margin expansion
The read
The earnings inflection is real on a YoY basis: consolidated revenue rose 20.9% to ₹9370.66 lakh, EBITDA rose 30.3% to ₹1376.40 lakh and PAT rose 50.1% to ₹835.34 lakh, while employee cost intensity fell 159bps to 13.77%; however, sequential EBITDA margin contracted 372bps and PAT fell 19.1%, and ₹151.04 lakh of FX gain within other income supported the bottom line.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹93.71 Cr | +20.9% | +3.0% |
| EBIT | ₹11.21 Cr | +40.1% | |
| Net profit | ₹8.35 Cr | +50.1% | |
| EPS | ₹4.84 | +50.3% | |
| EBIT margin | 14.69% |
P&L walk
Consolidated revenue was ₹9370.66 lakh, +20.9% YoY and +3.0% QoQ; EBITDA margin was 14.69%, +106bps YoY but -372bps QoQ, while PAT rose 50.1% YoY to ₹835.34 lakh, helped by operating recovery, subsidiary contribution and ₹167.94 lakh of other income including ₹151.04 lakh of FX gain.
Segments
Closed-die forging and processing drove the group, with consolidated segment revenue of ₹9315.65 lakh, +21.1% YoY, and segment result of ₹1071.31 lakh, +40.5% YoY; the consolidated segment result was ₹268.88 lakh above standalone, showing material contribution from the US subsidiaries.
Key positives
- Consolidated revenue reached ₹9370.66 lakh, +20.9% YoY, led by closed-die forging revenue of ₹9315.65 lakh, +21.1% YoY.
- Consolidated EBITDA grew 30.3% YoY to ₹1376.40 lakh versus revenue growth of 20.9%, with employee-cost intensity improving to 13.77% from 15.36%.
- Consolidated PAT increased 50.1% YoY to ₹835.34 lakh and EPS rose 50.3% to ₹4.84, with no dilution signal from the PAT-to-EPS cross-check.
- US export sales to the company's WOS and SOS rose 79.3% YoY to ₹449.73 lakh.
- The Butibori greenfield project has an estimated investment of ₹25000 lakh, with ₹2858.82 lakh advanced by 30 June 2026.
Key concerns
- Sequential EBITDA margin fell 372bps to 14.69% from the prior quarter's derived 18.41%, while PAT declined 19.1% to ₹835.34 lakh.
- Other income of ₹167.94 lakh included a ₹151.04 lakh foreign-exchange gain, making non-operating income a meaningful contributor to the ₹1069.16 lakh consolidated PBT.
- Consolidated segment assets increased 32.4% YoY to ₹36377.51 lakh while depreciation declined 0.6%, requiring monitoring of when the new asset base begins contributing depreciation and earnings.
Research and educational content only. Not investment advice.