Suratwwala Busi. Q1 FY27 Results (NSE: SBGLP)

13 Aug 2026 · Analysis by Alpha Inflection

Signal: Growth decelerated

The read

The growth inflection remains real but is increasingly solar-led: consolidated revenue rose 164.1% YoY to ₹42.12 lakh and PAT 75.2% to ₹9.34 lakh, while EBITDA margin fell 1,080bps to 33.2% because construction costs rose 274.5% and finance cost rose 2,599.6%.

P&L walk

Revenue increased 164.1% YoY to ₹42.12 lakh, but gross margin compressed by about 1,810bps as construction costs rose 274.5% YoY; EBITDA still grew 84.7% to ₹14 lakh, while PAT rose 75.2% to ₹9.34 lakh.

Segments

The solar unit is the main consolidated growth engine, with revenue of 2325.17 lakh up 184.7% YoY and segment result of 403.22 lakh versus 10.78 lakh, while real-estate revenue grew 25.2% to 1901.56 lakh.

Key positives

• Solar Unit revenue was 2325.17 lakh, up 184.7% YoY, and segment result rose to 403.22 lakh from 10.78 lakh.
• Consolidated EBITDA increased 84.7% YoY to ₹14 lakh despite gross-margin pressure, while employee costs rose only 24.0% YoY versus revenue growth of 164.1%.
• Segment assets increased 86.0% YoY to 31437.92 lakh and depreciation rose 72.1%, with the depreciation-to-asset-base check remaining clean.
• The Board recommended a final dividend of ₹0.12 per share for FY26, subject to shareholder approval.

Key concerns

• Gross margin compressed about 1,810bps YoY as construction costs rose 274.5% versus revenue growth of 164.1%, indicating cost absorption rather than full pass-through.
• Consolidated EBITDA margin declined to 33.2%, down 1,080bps YoY, despite revenue growth of 164.1%.
• Finance cost increased 2,599.6% YoY to 69.39 lakh, creating a growing below-EBITDA drag.
• Standalone revenue grew only 25.2% YoY to 1901.56 lakh, so the consolidated growth profile depends materially on the solar subsidiary.

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