Starteck Fin. Q1 FY27 Results (NSE: STARTECK)
Signal: Earnings grew
The read
The key inflection is the return of operating-revenue momentum: consolidated operating revenue rose 39.5% YoY to ₹1,091.36 lakh after Q4FY26's 2.1% decline, but PAT growth of 22.0% lagged operating-revenue growth as other income fell 67.3% to ₹92.15 lakh and finance cost remained high at ₹573.35 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10.91 Cr | 39.5% | N/A |
| EBIT | ₹10.95 Cr | 16.0% | |
| Net profit | ₹4.32 Cr | 22.0% | |
| EPS | ₹4.36 | 21.8% | |
| EBIT margin | 0% |
P&L walk
Consolidated operating revenue was ₹1,091.36 lakh, up 39.5% YoY, led by interest income of ₹946.90 lakh and fee income of ₹144.33 lakh; finance cost rose 13.5% to ₹573.35 lakh, while PAT increased 22.0% to ₹432.12 lakh.
Segments
The company reports a single activity with no reportable segments; consolidated PAT of ₹432.12 lakh exceeded standalone PAT of ₹411.12 lakh by ₹21.00 lakh, showing a modest positive subsidiary contribution.
Key positives
- Consolidated operating revenue increased 39.5% YoY to ₹1,091.36 lakh, reversing the -2.1% YoY revenue decline in Q4FY26.
- Fee and commission income rose to ₹144.33 lakh from ₹18.96 lakh YoY, providing meaningful diversification beyond interest income.
- Finance cost grew 13.5% YoY to ₹573.35 lakh, slower than the 39.5% operating-revenue growth, while provisions declined 34.8% to ₹10.71 lakh.
- EPS of ₹4.36 grew 21.8% YoY versus PAT growth of 22.0%, with no material PAT-to-EPS divergence.
Key concerns
- PAT growth of 22.0% to ₹432.12 lakh materially lagged the 39.5% growth in operating revenue because other income declined 67.3% to ₹92.15 lakh.
- Finance cost of ₹573.35 lakh remained the largest expense line, making earnings sensitive to funding costs and leverage.
- Standalone total expenses rose 16.7% YoY to ₹639.25 lakh, faster than standalone total-income growth of 14.9%.
- The filing approved an enabling resolution to raise up to ₹1,000 crore of non-convertible debt and up to ₹500 crore of equity or convertible securities; no specific issuance is committed, but execution could increase leverage or dilute shareholders.
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