Protean eGov Q1 FY27 Results (NSE: PROTEAN)
Signal: Margin expansion
The read
The quarter shows a revenue recovery with consolidated revenue up 19.0% YoY to ₹250.96 crore and EBITDA margin at 11.1%, but the earnings trajectory remains weak: PAT fell 75.4% to ₹5.86 crore as depreciation rose 58.8% and other income of ₹15.40 crore represented 201.6% of PBT; this reverses the prior two-quarter margin-expansion trend in the recent results series.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹250.96 Cr | +19.0% | -18.4% |
| EBIT | ₹10.29 Cr | 0.0% | |
| Net profit | ₹5.86 Cr | -75.4% | |
| EPS | ₹1.44 | -75.5% | |
| EBIT margin | 11.1% |
P&L walk
Revenue grew 19.0% YoY to ₹250.96 crore and EBITDA rose 30.4% to ₹27.82 crore, but depreciation increased 58.8% to ₹17.53 crore and PAT fell 75.4% to ₹5.86 crore as the prior-year other-income base included a ₹5.76 crore employee-benefit provision write-back.
Key positives
- Consolidated revenue reached ₹250.96 crore, up 19.0% YoY, extending the recent return to double-digit growth after +14.0% in Q2FY26 and +13.1% in Q3FY26.
- EBITDA rose approximately 30.4% YoY to ₹27.82 crore, around 11.4 percentage points faster than revenue growth, with EBITDA margin at 11.1% versus approximately 10.1% a year earlier.
- Standalone and consolidated results were closely aligned: consolidated revenue of ₹250.96 crore and PAT of ₹5.86 crore versus standalone revenue of ₹250.45 crore and PAT of ₹5.98 crore.
Key concerns
- Consolidated PAT fell 75.4% YoY to ₹5.86 crore despite 19.0% revenue growth, and sequential PAT fell 80.7% from ₹30.38 crore.
- Depreciation increased 58.8% YoY to ₹17.53 crore while finance costs increased 74.3% to ₹2.65 crore, limiting conversion of EBITDA into EBIT and PAT.
- System implementation, support and maintenance costs rose 76.5% YoY to ₹67.25 crore, materially faster than revenue growth.
- EBITDA margin declined approximately 560bps sequentially from 16.7% in Q4FY26 to 11.1%, interrupting the margin expansion seen in Q3FY26 and Q4FY26.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.