Shilchar Tech. Q1 FY27 Results (NSE: SHILCTECH)
Signal: Revenue declined
The read
The key inflection is a sharp gross-margin breakdown to 27.21%, down 1,416bps YoY, alongside a 15.22% revenue decline; raw material cost rose to 68.15% of revenue from 57.56%, and PAT fell 49.72% to ₹2,086.48 lakh despite other income increasing 69.69%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹134.61 Cr | -15.22% | -11.24% |
| Net profit | ₹20.86 Cr | -49.72% | |
| EPS | ₹18.24 | -49.71% |
P&L walk
Standalone revenue fell to ₹13,460.71 lakh, down 15.22% YoY and 11.24% QoQ; gross margin compressed to 27.21% from 41.37% as raw material cost rose to 68.15% of revenue from 57.56%, driving PAT down 49.72% to ₹2,086.48 lakh despite other income rising 69.69%.
Key positives
- Employee benefits expense declined 0.52% YoY to ₹573.26 lakh while revenue fell 15.22% YoY, providing limited cost containment.
- Finance costs remained low at ₹9.92 lakh, down 3.60% YoY.
- EPS of ₹18.24 tracked PAT decline of 49.72% closely, with no material dilution indicated.
Key concerns
- Gross margin compressed 1,416bps YoY to 27.21%, with raw material cost rising to 68.15% of revenue from 57.56%; the filing does not disclose the cause.
- Revenue from operations declined 15.22% YoY to ₹13,460.71 lakh and 11.24% QoQ, with no volume or realisation bridge provided.
- Other expenses increased 18.21% YoY to ₹884.46 lakh despite the 15.22% revenue decline.
- PAT declined 49.72% YoY to ₹2,086.48 lakh even as other income rose 69.69% to ₹717.62 lakh, indicating that non-operating income partially cushioned weaker operations.
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