Prec. Wires (I) Q1 FY27 Results (NSE: PRECWIRE)
Signal: Steady quarter
The read
The key inflection is weaker operating-profit conversion: revenue grew 60.4% YoY to ₹1770.48 Cr, versus EBITDA growth of 43.6% to ₹84.65 Cr and a reported 4.8% margin; the planned Silvassa project lifts capacity to 69,200 MT/PA by end-FY2028, but the proposed ₹150 crore CCD issue introduces future equity dilution and funding execution risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,770.48 Cr | 60.4% | N/A |
| EBIT | ₹76.37 Cr | 44.4% | |
| EPS | ₹2.54 | 67.1% | |
| EBIT margin | 4.8% |
P&L walk
Standalone revenue was ₹1770.48 Cr, +60.4% YoY, but EBITDA of ₹84.65 Cr grew slower at +43.6% and EBITDA margin was 4.8%; EBIT reached ₹76.37 Cr, +44.4%, while EPS rose +67.1% to ₹2.54, although PAT was not disclosed in the XBRL filing.
Key positives
- Revenue reached ₹1770.48 Cr, +60.4% YoY, extending the company’s high-growth trajectory.
- EBITDA increased to ₹84.65 Cr, +43.6% YoY, while EBIT rose to ₹76.37 Cr, +44.4% YoY.
- The Silvassa expansion was increased to 4620 MT/PA at a project cost of Rs. 38 crores, with net effective installed capacity targeted at 69,200 MT/PA by end of FY2028.
- The proposed Rs. 200 Crores unsecured working capital facility provides additional funding capacity for expansion and operating needs.
Key concerns
- EBITDA growth of 43.6% lagged revenue growth of 60.4%, and EBITDA margin was only 4.8%, indicating weaker operating-profit conversion.
- PAT was not disclosed in the authoritative filing data despite EPS of ₹2.54 and +67.1% YoY growth, limiting earnings-quality analysis.
- The proposed CCD issue of Rs. 1,50,00,00,000/- could convert into 37,50,000 equity shares within eighteen months, creating future dilution risk.
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