Quadrant Future Q1 FY27 Results (NSE: QUADFUTURE)
Signal: Loss narrowed
The read
The operating inflection is real but incomplete: revenue rose 41.3% YoY and gross margin expanded to 10.9% from -37.4% as raw material intensity fell to 89.1% from 137.4%, yet EBITDA remained -29.00 million and PAT -91.32 million, with TCS losing 101.77 million at segment PBIT and auditors flagging a second consecutive quarter of cash loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹40.59 Cr | 41.3% | -28.2% |
| EBIT | ₹-6.5 Cr | 45.7% | |
| Net profit | ₹-9.13 Cr | 32.4% | |
| EPS | ₹-2.29 | 32.4% | |
| EBIT margin | -7.1% |
P&L walk
Revenue increased 41.3% YoY to 405.88 million, while the gross-margin recovery sharply reduced the EBITDA loss to 29.00 million; however, depreciation of 35.99 million and finance cost of 8.10 million still left EBIT at -65.00 million and PAT at -91.32 million.
Segments
The Cable Division generated 405.88 million of revenue and 28.68 million of segment PBIT, while the TCS Division contributed effectively no revenue and a -101.77 million segment loss, making TCS the primary drag on consolidated economics.
Key positives
- Revenue from operations increased 41.3% YoY to 405.88 million, led by the Cable Division.
- Gross margin expanded by 4,827bps YoY to 10.9% as raw material cost declined to 89.1% of revenue from 137.4%.
- EBITDA loss narrowed 61.5% YoY to 29.00 million, while employee cost was broadly flat at 67.56 million.
- Cash loss reduced to 25.71 million from 310.22 million YoY, although it remained present.
Key concerns
- PAT remained negative at -91.32 million and worsened sequentially from a 11.41 million loss in Q4FY26.
- The TCS Division produced no meaningful revenue and a -101.77 million segment PBIT loss, overwhelming the Cable Division's 28.68 million segment profit.
- The business incurred cash losses in two consecutive quarters, and auditors described this as indicative of financial stress.
- Raw material cost increased sequentially to 361.75 million from 421.85 million only because revenue also fell; raw material intensity rose to 89.1% from 74.6% QoQ.
- Deferred tax expense of 18.23 million further depressed reported PAT despite no current tax expense.
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