S T C Q1 FY27 Results (NSE: STCINDIA)
Signal: Earnings declined
The read
The trajectory weakened materially in Q1FY27: operating EBITDA/EBIT fell 66.9% YoY to ₹3.41 Cr and PAT fell 71.1% to ₹2.84 Cr, while other income of ₹16.92 Cr equalled 595.8% of PBT; the reported profit is therefore non-operating and low-quality, against a backdrop of severe legacy-receivable and audit-qualification risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0 Cr | N/A | N/A |
| EBIT | ₹3.41 Cr | -66.9% | |
| Net profit | ₹2.84 Cr | -71.1% | |
| EPS | ₹0.47 | -71.3% | |
| EBIT margin | N/A |
P&L walk
Standalone operating EBITDA/EBIT of ₹3.41 Cr fell 66.9% YoY and PAT of ₹2.84 Cr fell 71.1%; ₹16.92 Cr of other income exceeded PBT by 595.8%, making earnings quality the central issue.
Key positives
- EPS of ₹0.47 declined 71.3% YoY versus PAT decline of 71.1%, so the filing does not indicate a material dilution-led EPS divergence.
- The company completed an OTS with lender banks, with a ₹606.23 crore exceptional gain recorded in FY26 and withdrawal of the lead bank's DRT case disclosed.
Key concerns
- Operating EBITDA/EBIT fell 66.9% YoY to ₹3.41 Cr while PAT fell 71.1% YoY to ₹2.84 Cr, signalling a sharp deterioration in the operating base.
- Revenue was reported at ₹0 Cr, leaving the operating margin uninformative and making ₹16.92 Cr of other income the dominant contributor to the quarter's earnings.
- Trade receivables of ₹1,69,921.85 lakh have been outstanding for more than three years, and the auditor identified a short provision for doubtful debts of ₹1,07,194.23 lakh.
- The auditor reported a qualified opinion and stated that the financial statements were prepared on a non-going-concern basis.
Earnings quality: includes non-operating other income
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