Shaily Engineer. Q1 FY27 Results (NSE: SHAILY)
Signal: Margin expansion
The read
The quarter marks a clear gross-margin inflection, with consolidated gross margin up 569bps YoY to 56.83% and EBITDA margin up 115bps to 29.68%, but revenue growth decelerated to 13.8% from 38.0% in Q1FY26 and subsidiaries reduced group PAT by ₹4.46 crore versus standalone.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹280.67 Cr | +13.8% | +18.5% |
| EBIT | ₹69.26 Cr | +17.5% | |
| Net profit | ₹48.01 Cr | +16.8% | |
| EPS | ₹10.44 | +16.6% | |
| EBIT margin | 29.68% |
P&L walk
Consolidated revenue increased 13.8% YoY to ₹280.67 crore, gross margin expanded 569bps to 56.83% as raw-material cost fell to 45.09% of revenue, and EBITDA margin improved 115bps to 29.68%; employee costs grew 31.6% and partly absorbed the gross-margin benefit.
Segments
The company reports one segment, but subsidiaries dragged consolidated PAT to ₹48.01 crore versus standalone PAT of ₹52.47 crore; one subsidiary reported ₹1.43 crore revenue and a ₹1.97 crore loss before consolidation adjustments.
Key positives
- Consolidated gross margin expanded 569bps YoY to 56.83% as raw-material cost declined to 45.09% of revenue from 50.15%, although the filing does not disclose the driver.
- Consolidated EBITDA increased to ₹83.30 crore from ₹70.39 crore YoY and EBITDA margin expanded 115bps to 29.68%.
- Finance costs declined 14.2% YoY to ₹3.32 crore, while PAT increased 16.8% to ₹48.01 crore despite other income falling 88.0% to ₹0.25 crore.
Key concerns
- Revenue growth decelerated to 13.8% YoY from 38.0% in Q1FY26, despite an 18.5% sequential increase to ₹280.67 crore.
- Employee benefits expense rose 31.6% YoY to ₹32.76 crore, faster than consolidated revenue growth and limiting conversion of gross-margin expansion into operating-margin expansion.
- Subsidiaries reported a ₹1.97 crore loss on ₹1.43 crore revenue, leaving consolidated PAT ₹4.46 crore below standalone PAT.
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