Salzer Electron. Q1 FY27 Results (NSE: SALZERELEC)
Signal: Margin pressure
The read
The demand trajectory remains positive with consolidated revenue at ₹498.02 crore, +12.9% YoY and +5.03% QoQ, but Q1FY27 marks the fourth consecutive quarter of YoY operating-margin contraction, with EBITDA margin falling 318bps to 6.4% and PAT declining 53.5% to ₹8.04 crore; recovery depends on pricing, sourcing and product-mix actions offsetting copper, silver and aluminium inflation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹498.02 Cr | 12.9% | 5.03% |
| EBIT | ₹24.74 Cr | -32.0% | |
| Net profit | ₹8.04 Cr | -53.5% | |
| EPS | ₹4.55 | -53.3% | |
| EBIT margin | 6.4% |
P&L walk
Revenue increased to ₹498.02 crore, +12.9% YoY and +5.03% QoQ, led by industrial switchgear, wires and cables and building products, but EBITDA fell 25.4% YoY to ₹31.72 crore as elevated copper, silver and aluminium costs compressed EBITDA margin by 318bps to 6.4%; EBIT fell 32.0% YoY to ₹24.74 crore and PAT fell 53.5% YoY to ₹8.04 crore.
Segments
The core industrial switchgear division remained the largest contributor at 53.58% of revenue and grew 10.33% YoY, while building products was the fastest-growing disclosed business at 48.03%; standalone PAT of ₹8.47 crore exceeded consolidated PAT of ₹8.04 crore, indicating a ₹0.43 crore drag below the parent level.
Key positives
- Consolidated revenue reached ₹498.02 crore, growing 12.9% YoY and 5.03% QoQ despite margin pressure.
- Building products grew 48.03% YoY and contributed 6.12% of revenue, making it the fastest-growing disclosed division.
- Industrial switchgear grew 10.33% YoY and contributed 53.58% of revenue, while wires and cables grew 11.07% and contributed 40.30%.
- Exports contributed 18.60% of revenue, and management cited demand from power infrastructure, renewable energy, industrial automation, data centres and electrification.
Key concerns
- EBITDA declined 25.4% YoY to ₹31.72 crore and EBITDA margin contracted 318bps to 6.4% because elevated copper, silver and aluminium costs were not yet fully offset.
- PAT declined 53.5% YoY to ₹8.04 crore, materially underperforming 12.9% revenue growth as cost inflation flowed through the P&L.
- The margin arc has deteriorated for four consecutive quarters on a YoY basis, from 8.73% in Q2FY26 to 6.4% in Q1FY27.
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