Smartworks Cowor Q1 FY27 Results (NSE: SMARTWORKS)
Signal: Loss reversed
The read
Revenue grew 44% YoY to ₹546 Cr, OPM expanded to 65.8%, and consolidated PAT turned positive at ₹13.1 Cr vs loss a year ago, driven by strong operational scale-up; however, other income forms 76% of PBT highlighting dependence on non-operating income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹546.25 Cr | 44.0% | 5.1% |
| EBIT | ₹113.67 Cr | 49.8% | |
| Net profit | ₹13.15 Cr | N/A | |
| EPS | ₹1.15 | 380.5% | |
| EBIT margin | 65.8% |
P&L walk
Revenue up 44% YoY to ₹5,462 mn driven by scale-up; EBITDA margin expanded 180bps YoY to 65.8% on operating leverage (employee cost +18% vs rev +44%); PAT turned positive to ₹131 mn (vs loss ₹42 mn YoY) aided by other income of ₹134 mn (76.4% of PBT).
Key positives
- Revenue up 44% YoY to ₹546 Cr (₹379 Cr in Q1FY26).
- Consolidated EBITDA margin expanded to 65.8% from 64% YoY.
- Consolidated PAT turned positive at ₹13.1 Cr vs loss of ₹4.2 Cr in Q1FY26.
- EPS improved to ₹1.15 from -₹0.41 YoY.
Key concerns
- Other income constitutes 76.4% of PBT, indicating low core operating profit relative to total income.
- Finance cost remains high at ₹96 Cr, with interest coverage ratio around 1.2x.
- High leverage (D/E 9x) from fundamentals.
Earnings quality: includes non-operating other income
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