Sambhv Steel Q1 FY27 Results (NSE: SAMBHV)
Signal: Growth decelerated
The read
Revenue growth of 31% YoY remains robust, with EBITDA margin expanding modestly to 13.7%; PAT growth of 69% is flattered by lower finance costs and higher other income. EPS growth of 38% lags PAT due to equity dilution from warrants, a key concern. The company announced a ₹25 Cr solar capex, signalling operational cost optimisation. Overall, a steady quarter with healthy demand but earnings quality slightly diluted.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹732.17 Cr | 31.1% | 6.8% |
| EBIT | ₹87.48 Cr | 42.3% | |
| Net profit | ₹56.52 Cr | 69.2% | |
| EPS | ₹1.92 | 38.1% | |
| EBIT margin | 13.7% |
P&L walk
Revenue grew 31% YoY, EBITDA margin expanded 55bps to 13.7% on cost control; PAT grew 69% aided by lower finance costs and higher other income; EPS growth lagged due to dilution.
Key positives
- Revenue ₹732 Cr, +31% YoY, sustained double-digit growth trajectory.
- PAT ₹56.5 Cr, +69% YoY, boosted by lower finance costs and higher other income.
- EBITDA margin up 55bps YoY to 13.7% through operating cost control.
- Clean earnings quality: other income below 20% of PBT.
- Approved 8MW solar captive plant with ₹25 Cr outlay to reduce power costs.
Key concerns
- EPS growth (+38%) materially lags PAT growth (+69%), signalling dilution from warrant issue (8.7mn warrants at ₹115).
- Raw material cost as % of revenue increased to 72.3% from 65.9% YoY (input cost pressure).
- Finance costs up 8.7% QoQ, though still down 35% YoY.
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