Shanti Educat. Q1 FY27 Results (NSE: SEIL)
Signal: Growth decelerated
The read
The headline recovery is not yet a clean standalone turnaround: consolidated revenue rose 7.6% YoY to ₹1632.43 lakh and EBITDA margin held at 25.56%, but standalone revenue fell 40.0% to ₹533.74 lakh and standalone PAT was only ₹24.892 lakh; the group PAT of ₹282.22 lakh is therefore overwhelmingly subsidiary-led.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹16.32 Cr | +7.6% | -35.2% |
| EBIT | ₹3.8 Cr | +2.1% | |
| Net profit | ₹2.82 Cr | -2.7% | |
| EPS | ₹0.18 | 0.0% | |
| EBIT margin | 25.56% |
P&L walk
Consolidated revenue of ₹1632.43 lakh grew 7.6% YoY but fell 35.2% QoQ; gross margin compressed 570bps YoY to 66.08%, EBITDA margin eased 96bps YoY to 25.56%, and PAT declined 2.7% because the subsidiary contribution dominated group earnings.
Segments
There is no segment split, but the standalone-versus-consolidated gap is material: standalone PAT was ₹24.892 lakh while consolidated PAT was ₹282.22 lakh, with ₹282.22 lakh attributed to UniformVerse's unaudited financial information.
Key positives
- Consolidated revenue was ₹1632.43 lakh, up 7.6% YoY, while EBITDA margin remained high at 25.56%, only 96bps below the year-ago level.
- Finance cost declined 95.5% YoY to ₹3.18 lakh, supporting PBT growth of 3.4% to ₹376.63 lakh.
- Consolidated EBITDA margin rebounded 2215bps QoQ from 3.41% in Q4FY26, showing a sharp sequential recovery in operating profitability.
Key concerns
- Standalone revenue fell 40.0% YoY to ₹533.74 lakh and standalone EBITDA margin collapsed 2737bps to 9.08%, indicating weakness in the parent operating business.
- Consolidated PAT of ₹282.22 lakh was almost entirely supported by subsidiary earnings, including ₹282.22 lakh from UniformVerse's unaudited financial information; sustainability and reporting quality should be monitored.
- Gross margin compressed 570bps YoY to 66.08% as cost of materials consumed rose to 15.80% of revenue from 11.16%, with the driver not disclosed.
- Consolidated revenue fell 35.2% QoQ from ₹2517.27 lakh, so the 7.6% YoY growth remains volatile rather than a demonstrated steady acceleration.
Research and educational content only. Not investment advice.