Sharda Motor Q1 FY27 Results (NSE: SHARDAMOTR)

10 Aug 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The trajectory remains volume/revenue-positive but margin-negative: revenue growth accelerated to 33.7% YoY from 29.6% in Q4FY26, yet this is the fourth consecutive quarter of reported margin contraction, with gross margin down 587bps YoY to 19.2% and EBITDA growth of only 7.3%; the immediate earnings-quality issue is PAT falling 13.4% and EPS falling 56.7% because of both operating absorption and dilution, while other income represented 23.7% of PBT.

P&L walk

Revenue increased to ₹1,01,106.68 lakh (+33.7% YoY, +4.0% QoQ), but gross margin contracted 587bps YoY to 19.2% as raw-material cost rose to 78.1% of revenue; EBITDA grew only 7.3% to ₹13,030 lakh, while PAT declined 13.4% to ₹8,652.80 lakh.

Key positives

• Revenue increased to ₹1,01,106.68 lakh, +33.7% YoY and +4.0% QoQ, accelerating from +29.6% YoY in Q4FY26.
• Employee and other operating expenses grew 14.6% YoY versus 33.7% revenue growth, providing cost containment despite gross-margin pressure.
• Finance cost remained low at ₹123.44 lakh, approximately 0.1% of revenue, limiting balance-sheet drag on operating earnings.

Key concerns

• Gross margin contracted 587bps YoY to 19.2% as raw-material cost rose to 78.1% of revenue from 73.0%, indicating cost absorption; the filing does not disclose the driver.
• EBITDA grew only 7.3% YoY to ₹13,030 lakh versus 33.7% revenue growth, leaving EBITDA margin at 12.9%.
• PAT fell 13.4% YoY to ₹8,652.80 lakh despite 7.0% EBIT growth, showing weak conversion below operating profit.
• Paid-up equity share capital doubled to ₹1,148.16 lakh from ₹574.08 lakh, causing EPS to fall 56.7% YoY to ₹15.07 versus PAT decline of 13.4%.

Earnings quality: includes non-operating other income

View original filing

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