Silver Touch Q1 FY27 Results (NSE: SILVERTUC)
Signal: Margin expansion
The read
Growth deceleration from +30% to +10.5% YoY is a clear slowdown, but margin expansion continues (5th straight quarter of YoY OPM expansion) and PAT still growing faster than revenue. The Q1 seasonality drop (QoQ) is typical, but the YoY slowdown warrants monitoring for demand fatigue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹63 Cr | +10.5% | -26.7% |
| EBIT | ₹9 Cr | 0% | |
| Net profit | ₹4 Cr | +23.1% | |
| EPS | ₹0.32 | +23.1% | |
| EBIT margin | 14% |
P&L walk
Revenue growth decelerated sharply to +10.5% YoY from +29.7% in Q3FY26 and +14.7% in Q2FY26, while OPM expanded 200bps YoY to 14% — the 5th consecutive quarter of YoY margin expansion. Operating profit (EBIT) was flat YoY at ₹9 Cr because the Q1FY26 EBIT line included other income; this quarter's core operating profit tracked PAT growth better. Net profit rose 23.1% YoY, tracking the margin improvement on a slower revenue base.
Key positives
- 5th consecutive quarter of OPM expansion (+200bps YoY) — margins now at 14% vs 12% in Q1FY26.
- PAT grew +23.1% YoY, outpacing revenue growth of +10.5% YoY, demonstrating operating leverage benefit.
Key concerns
- Q1FY27 revenue growth slowed sharply to +10.5% YoY from +29.7% in Q3FY26 and +14.7% in Q2FY26 — a material deceleration.
- Sequential revenue fell 26.7% QoQ, partly seasonal but steeper than the 15-20% typical Q4→Q1 drop seen in prior years (Q4FY25→Q1FY26 was -13.9%).
Research and educational content only. Not investment advice.