SAB Industries Q1 FY27 Results (NSE: SAB)
Signal: Revenue declined
The read
The headline ₹2870.67 lakh consolidated PAT is not an operating recovery: standalone operations lost ₹146.40 lakh, EBITDA margin was -5.1%, construction posted a ₹118.40 lakh loss, and the associate supplied ₹3017.07 lakh; the key trajectory remains earnings dependence on the associate rather than core-business improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6.41 Cr | -0.9% | -49.3% |
| EBIT | ₹-0.51 Cr | N/A | |
| Net profit | ₹28.71 Cr | -38.2% | |
| EPS | ₹18.87 | -38.3% | |
| EBIT margin | -5.1% |
P&L walk
Consolidated revenue was ₹640.74 lakh, -0.9% YoY and -49.3% QoQ; operating performance remained loss-making, with EBITDA margin at -5.1%, but PAT of ₹2870.67 lakh was generated primarily by the ₹3017.07 lakh share of associate profit.
Segments
The real-estate division generated ₹640.74 lakh revenue and ₹59.87 lakh result, while construction collapsed to ₹3.70 lakh revenue and a ₹118.40 lakh loss; consolidated PAT was instead lifted by the associate's ₹3017.07 lakh contribution.
Key positives
- Consolidated PAT was ₹2870.67 lakh, despite standalone loss of ₹146.40 lakh, because associate profit contribution was ₹3017.07 lakh versus a ₹1213.72 lakh loss in the prior quarter.
- Real-estate division returned ₹59.87 lakh of segment profit from a ₹9.43 lakh loss in the immediately preceding quarter.
- Finance costs declined 77.3% QoQ from ₹418.87 lakh to ₹95.24 lakh.
Key concerns
- Standalone revenue declined 0.9% YoY to ₹640.74 lakh and 49.3% QoQ, while standalone PAT deteriorated to a ₹146.40 lakh loss.
- Construction revenue fell 67.7% YoY to ₹3.70 lakh and its segment loss widened to ₹118.40 lakh from ₹25.77 lakh.
- Employee benefits expense increased 100.2% YoY to ₹158.05 lakh despite revenue declining 0.9%, worsening operating-cost intensity.
- Consolidated earnings are highly dependent on the associate: its ₹3017.07 lakh contribution exceeded consolidated PAT of ₹2870.67 lakh.
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