SJS Enterprises Q1 FY27 Results (NSE: SJS)
Signal: Growth decelerated
The read
The core trajectory remains constructive: Q1FY27 revenue grew 24.5% YoY and EBITDA grew 36.2%, extending the company's 27-quarter record of outperforming the automotive industry, with PV, exports, premium product mix and new OEM wins supporting growth; however, reported PAT growth of 115.0% is not sustainable because ₹24.17 crore came from a one-time property sale, while normalised PAT still grew 45.2% and reached a 19.3% margin.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹261 Cr | +24.5% | N/A |
| EBIT | ₹68.2 Cr | N/A | |
| Net profit | ₹74.18 Cr | +115.0% | |
| EPS | ₹23.18 | +110.2% | |
| EBIT margin | 30.6% |
P&L walk
Consolidated revenue rose 24.5% YoY to ₹261 crore, EBITDA grew faster at 36.2% to ₹79.96 crore with a 30.6% margin, while PAT growth of 115.0% to ₹74.18 crore was boosted by the ₹24.17 crore one-time post-tax gain on sale of the Bengaluru facility.
Segments
No formal segment-results table was disclosed; the filing identifies PV growth of 45.4% and exports growth of 83.2% as the principal sources of consolidated momentum.
Key positives
- Revenue reached a record ₹261 crore, +24.5% YoY, with automotive business revenue growing 32.4% versus stated automotive industry production growth of 21.7%.
- PV revenue grew 45.4% YoY and exports grew 83.2% YoY, with exports contributing 9.8% of revenue, supporting mix and geographic diversification.
- EBITDA grew 36.2% YoY to ₹79.96 crore against revenue growth of 24.5%, with the company attributing the improvement to favourable product mix, higher exports, operational excellence and cost efficiencies.
- Normalised PAT grew 45.2% YoY to ₹50.25 crore and normalised PAT margin expanded 274bps to 19.3%, the highest quarterly margin since listing according to management.
- Multiple new business wins from Mahindra & Mahindra, Tata Motors, TVS Motor, Autoliv, Royal Enfield, Škoda, John Deere and Hero MotoCorp strengthen order-book visibility.
- Free cash flow of ₹83.75 crore and net cash of ₹328.77 crore preserve capacity for the Pune expansion and further organic or inorganic investment.
Key concerns
- Reported PAT of ₹74.18 crore includes a ₹24.17 crore one-time post-tax gain, so the 115.0% PAT growth overstates recurring earnings momentum.
- Exceptional items represented 29.2% of consolidated PBT and 36.9% of standalone PBT, making normalised earnings the more relevant measure for trajectory assessment.
- The filing does not disclose order-book value, capacity utilisation, volume growth or realisation data, limiting the ability to separate content-per-vehicle and mix benefits from underlying volume growth.
Earnings quality: includes an exceptional item
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