RPP Infra Proj. Q1 FY27 Results (NSE: RPPINFRA)
Signal: Margin pressure
The read
Q1FY27 is a sharp profit collapse: consolidated PAT of ₹2.77 Cr is the lowest in six quarters (barring Q4FY26's ₹-13.13 Cr). The culprit is gross margin — raw materials + construction + subcontractor costs consumed 92.7% of revenue vs 84.8% a year ago, a 7.9pp headwind that drove EBITDA margin to just 1.44% from 5.4% in Q1FY26. Revenue is flat and the company is near break-even on operations, relying on other income (₹2.54 Cr) to stay positive. This is a continuation of the margin-contracting trend seen in the prior series (Q3FY26 & Q4FY26 both showed steep OPM compression). Without a reversal in input cost pass-through or a change in project mix, the earnings trajectory remains negative.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹347.09 Cr | 0.04% | -23.1% |
| EBIT | ₹5 Cr | -74.2% | |
| Net profit | ₹2.77 Cr | -74.4% | |
| EPS | ₹0.56 | -74.4% | |
| EBIT margin | 1.04% |
P&L walk
Revenue flat YoY; operating profit (EBIT) crashed 74% as gross margin collapsed due to higher raw material and subcontractor costs.
Key positives
- Other income increased 19.8% YoY to ₹2.54 Cr, providing a modest cushion.
- Finance cost declined 19.2% YoY (₹3.70 Cr vs ₹4.58 Cr).
- Debt-to-equity at 0.2x (from fundamentals) remains conservative.
Key concerns
- Gross margin collapsed: raw material + construction + subcontractor costs rose to 92.7% of revenue from 84.8% YoY (+789bps) — severe input cost headwind.
- EBITDA margin dropped to ~1.4% from 5.4% a year ago — operations barely profitable.
- PAT down 74.4% YoY — at ₹2.77 Cr, the lowest Q1 profit in the prior series barring loss quarters.
- Depreciation fell 23.9% YoY to ₹1.40 Cr, possibly indicating shrinking asset base / under-investment.
- Revenue declined 23.1% sequentially from Q4FY26 (₹452 Cr → ₹347 Cr) — volatile order execution.
Research and educational content only. Not investment advice.