Rajoo Engineers Q1 FY27 Results (NSE: RAJOOENG)
Signal: Margin pressure
The read
Top-line momentum continues with 44.7% revenue growth, but profitability is squeezed by input-cost headwinds (EBITDA margin -419bps YoY). The sharp sequential margin recovery from Q4FY26's 4% level indicates operating normalisation; however, PAT growth (15.5%) lags revenue meaningfully. Near-term margin trajectory depends on raw material costs and product mix management.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹123.07 Cr | 44.66% | 55.05% |
| EBIT | ₹21.72 Cr | 16.90% | |
| Net profit | ₹17.35 Cr | 15.52% | |
| EBIT margin | 17.65% |
P&L walk
Revenue surged 44.7% YoY on full-swing production and dispatch of carried-forward orders; EBITDA margin contracted 419bps YoY due to elevated raw material and logistics costs, but rebounded 1363bps sequentially from Q4FY26 trough as capacity utilization improved and high-value machines were dispatched. PAT growth (15.5%) lagged revenue due to margin compression.
Key positives
- Revenue growth of 44.66% YoY to ₹123 Cr, driven by full-swing production and order execution.
- Sequential EBITDA margin improvement of 1,363 bps from Q4FY26 trough, reflecting higher capacity utilisation and high-value dispatches.
- PAT grew 15.5% YoY to ₹17.35 Cr, maintaining double-digit profitability despite margin pressure.
Key concerns
- EBITDA margin contracted 419 bps YoY to 17.65% due to elevated raw material prices and increased procurement/logistics costs linked to global geopolitical developments.
- PAT growth (15.5%) significantly lagged revenue growth (44.7%), indicating operating deleverage from input cost inflation.
- Q4FY26 showed weak performance (rev -12.2% YoY, margin 4%) – the strong sequential recovery may partly reflect a low base, and sustainability of margin levels is uncertain.
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