Sigma Solve Q1 FY27 Results (NSE: SIGMA)
Signal: Margin expansion
The read
Consolidated PAT surged on a windfall of non-operating other income, masking a weak operational uptrend — standalone revenue declined and the high EBITDA margin is not sustainable. EPS dilution is a serious red flag.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹23.03 Cr | 11.5% | -75.9% |
| EBIT | ₹16.52 Cr | 139.4% | |
| Net profit | ₹12.58 Cr | 135.0% | |
| EPS | ₹1.22 | -75.8% | |
| EBIT margin | 72.6% |
P&L walk
Revenue grew 11.5% YoY to ₹23.03 Cr, but the headline profit is inflated by other income (54.4% of PBT). EBITDA margin surged to 72.6% (vs 38.0%? inferred) driven largely by non-operating other income, not operational improvement. PAT more than doubled YoY to ₹12.58 Cr, but EPS dropped 75.8% due to higher diluted share count.
Key positives
- Revenue +11.5% YoY to ₹23.03 Cr.
Key concerns
- EPS -75.8% YoY despite PAT +135% — massive dilution or minority payout.
- Other income is 54.4% of PBT — core profitability overstated.
- Standalone revenue -2% YoY — underlying business may be contracting.
- QoQ revenue -75.9% — likely seasonal lump but extreme volatility.
Earnings quality: includes non-operating other income
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