Shah Metacorp Q1 FY27 Results (NSE: SHAH)
Signal: Growth reaccelerated
The read
The quarter shows a revenue rebound to ₹5,720.19 lakh, +98.0% YoY, but the core trajectory is mixed: gross margin contracted 337bps YoY to 14.92%, finance costs rose to ₹27.07 lakh from ₹0.46 lakh, and PAT growth of 41.2% did not reach EPS because the equity base expanded 48.9%. This reverses the prior two-quarter margin contraction only at the revenue level, not yet in profitability quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹57.2 Cr | +98.0% | -8.2% |
| Net profit | ₹3.52 Cr | +41.2% | |
| EPS | ₹0.04 | 0.0% | |
| EBIT margin | N/A |
P&L walk
Revenue increased to ₹5,720.19 lakh, +98.0% YoY but -8.2% QoQ; gross margin fell 337bps YoY to 14.92% as purchases of stock-in-trade rose to ₹203.92 lakh from zero, while PAT increased 41.2% to ₹352.28 lakh despite a 48.9% larger equity base.
Segments
No segment table is disclosed; consolidation added ₹306.71 lakh of revenue over standalone, but consolidated PAT of ₹352.28 lakh was only ₹1.41 lakh above standalone PAT as higher consolidated finance costs of ₹27.07 lakh offset the subsidiary contribution.
Key positives
- Consolidated revenue reached ₹5,720.19 lakh, +98.0% YoY, accelerating from +25.5% in Q3FY26 and +50.2% in Q4FY26.
- Raw material cost declined to 74.31% of revenue from 83.05% YoY; revenue growth of 98.0% exceeded raw material cost growth of 77.3%, indicating partial pass-through despite gross-margin compression.
- Standalone PAT rose 38.7% YoY to ₹350.87 lakh, showing that the earnings improvement was not solely dependent on the consolidated entities.
Key concerns
- Gross margin compressed 337bps YoY to 14.92% and 944bps QoQ, with stock-in-trade purchases rising to ₹203.92 lakh from zero in the year-ago quarter.
- EPS was flat YoY at ₹0.04 despite 41.2% consolidated PAT growth, as paid-up equity capital rose 48.9% YoY to ₹9,823.74 lakh.
- Consolidated finance costs increased to ₹27.07 lakh from ₹0.46 lakh YoY, materially weakening the group’s earnings conversion versus standalone finance costs of ₹0.49 lakh.
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