Sandhar Tech Q1 FY27 Results (NSE: SANDHAR)
Signal: Steady quarter
The read
The key inflection is topline acceleration to ₹1,381.89 crore, +26.8% YoY versus +19.4% in Q1FY26, but the margin arc has not yet repaired: EBITDA margin fell 60bps YoY to 7.2% after three prior quarters of YoY contraction or stagnation, as material costs rose 30.7% and employee costs 28.4%, both ahead of revenue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,381.89 Cr | +26.8% | +5.7% |
| EBIT | ₹49.8 Cr | +44.7% | |
| Net profit | ₹37.28 Cr | +33.1% | |
| EPS | ₹6.19 | +33.1% | |
| EBIT margin | 7.2% |
P&L walk
Consolidated revenue grew to ₹1,381.89 crore, +26.8% YoY, but material costs rose +30.7% and employee costs +28.4%, leaving EBITDA margin at 7.2%, down 60bps YoY; lower depreciation and a 2.7% rise in finance costs helped EBIT reach ₹49.80 crore, +44.7% YoY, while PAT rose 33.1% to ₹37.28 crore.
Key positives
- Consolidated revenue reached ₹1,381.89 crore, +26.8% YoY and +5.7% QoQ, accelerating from the prior-quarter YoY growth of 21.7%.
- Consolidated EBIT rose 44.7% YoY to ₹49.80 crore despite other income falling 37.5% to ₹12.14 crore, indicating that PAT growth was primarily operating-led rather than treasury-income-led.
- Standalone employee costs declined 17.6% YoY to ₹74.01 crore while standalone EBITDA margin expanded 120bps to 8.8%, demonstrating parent-level cost flexibility.
- EPS rose 33.1% YoY to ₹6.19, exactly tracking PAT growth, with paid-up capital unchanged at ₹60.19 crore.
Key concerns
- Consolidated EBITDA margin declined 60bps YoY to 7.2% because material costs rose 30.7% and employee costs 28.4%, both faster than revenue growth of 26.8%.
- The group-level margin remains below the 9%-10% OPM range seen through most of FY25 and FY26, making cost absorption and margin recovery central to the trajectory.
- Consolidated joint-venture profit fell 29.1% YoY to ₹1.34 crore, while the consolidated group remains substantially dependent on subsidiaries for growth because standalone revenue declined 8.5% YoY to ₹665.96 crore.
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