Salzer Electron. Q1 FY27 Results (NSE: SALZERELEC)
Signal: Margin pressure
The read
The key inflection is negative: revenue accelerated to ₹49,801.59 lakh, +12.9% YoY, but this was accompanied by a fourth consecutive quarter of YoY margin contraction in the recent series, with EBITDA margin falling to 6.4% from 9.0% and PAT attributable to owners declining 53.5% to ₹803.99 lakh; the next thesis test is whether gross-margin pressure reverses rather than further revenue growth alone.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹498.02 Cr | 12.9% | +5.0% |
| 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 ₹49,801.59 lakh, +12.9% YoY and +5.0% QoQ, but gross margin compressed to 19.95% from 23.26% and EBITDA margin fell to 6.4% from 9.0%, while associate losses of ₹107.51 lakh further reduced PAT attributable to owners to ₹803.99 lakh, -53.5% YoY.
Segments
There is no reported segment split; the main consolidated-versus-standalone gap is the ₹107.51 lakh share-of-loss from associates, which reduced consolidated PAT to ₹832.56 lakh versus standalone PAT of ₹846.92 lakh.
Key positives
- Consolidated revenue reached ₹49,801.59 lakh, +12.9% YoY and +5.0% QoQ, continuing the company's double-digit growth trajectory.
- Finance cost declined 0.4% YoY to ₹1,205.43 lakh while revenue grew 12.9%, limiting incremental financing drag.
- EPS declined 53.3% to ₹4.55 versus a 53.5% decline in PAT attributable to owners, indicating no material dilution signal.
Key concerns
- Gross margin compressed 331bps YoY to 19.95% as raw material cost increased to 79.82% of revenue from 77.83%; the filing does not identify a mitigating pricing or mix driver.
- EBITDA fell 25.4% YoY to ₹3,172 lakh and EBITDA margin declined 260bps to 6.4% despite 12.9% revenue growth, showing negative operating conversion.
- PAT attributable to owners fell 53.5% YoY to ₹803.99 lakh, materially underperforming revenue because of lower operating profitability and a ₹107.51 lakh associate loss.
- The company disclosed that Salzer Kostad EV Chargers Private Limited and Salzer Emarch Electromobility Private Limited were prepared on a non-going-concern liquidation basis; Kostad was struck off in July 2026 and Emarch's strike-off is ongoing.
Research and educational content only. Not investment advice.