SMC Global Sec. Q1 FY27 Results (NSE: SMCGLOBAL)
Signal: Margin expansion
The read
Q1FY27 shows a sharp YoY recovery in PAT (₹1,873 Cr vs ₹334 Cr, +461%), but the base was extremely low (Q1FY26 PAT was ₹4 Cr according to PRIOR RESULTS SERIES, revised to ₹334 Cr in this filing). Revenue growth is modest at 5.8% YoY, while other income remains a dominant profit driver (₹15,150 Cr, 35.6% of total income). The 200bps YoY margin expansion to 17% is a positive inflection after 4 consecutive quarters of contracting margins, but QoQ revenue and PAT both declined (revenue -17.8%, PAT -28.3%), signaling sequential weakness. The ₹150 Cr NCD issue indicates ongoing capital raising.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹424.93 Cr | 5.8% | -17.8% |
| EBIT | ₹72.04 Cr | 72.0% | |
| Net profit | ₹18.73 Cr | 461.1% | |
| EPS | ₹1.81 | 79.2% | |
| EBIT margin | 17% |
P&L walk
Revenue grew 5.8% YoY to ₹42,493 Cr but PAT surged 461% YoY driven by a massive jump in other income (₹15,150 Cr vs ₹8,537 Cr a year ago) and a 72% rise in EBIT, while OPM expanded 200bps to 17%. The base-quarter comparison is distorted by the prior year's very low PAT (₹334 Cr vs ₹1,873 Cr now).
Segments
Filing discloses a segment table with revenue from operations but no segment result/asset details; consolidated total income of ₹42,493 Cr vs standalone ₹27,343 Cr, suggesting subsidiaries (NBFC, Housing Finance) contribute significantly to group income.
Key positives
- PAT surged 461% YoY to ₹1,873 Cr, recovering from a very weak base of ₹334 Cr in Q1FY26.
- OPM expanded 200bps YoY to 17%, breaking a 4-quarter streak of contracting margins.
- EBIT grew 72% YoY to ₹7,204 Cr, driven by higher other income and operating leverage.
- EPS grew 79% YoY to ₹1.81, with no equity dilution.
Key concerns
- Revenue grew only 5.8% YoY, and declined 17.8% QoQ; sequential trend is weak.
- Other income remains a large share (35.6%) of total income, and fell 24.5% QoQ, making earnings volatile.
- Finance cost grew 21.5% YoY, outpacing revenue growth, indicating rising leverage costs.
- PAT declined 28.3% QoQ from Q4FY26, despite the strong YoY base effect.
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