Subros Q1 FY27 Results (NSE: SUBROS)
Signal: Steady quarter
The read
The trajectory improved on revenue, with Q1FY27 growth accelerating to 17.5% YoY from 8.4% in Q1FY26, but profitability did not follow: EBITDA grew only 9.3% and margin contracted 70bps to 8.4% as raw-material intensity rose 1,330bps to 73.5%; the new electric-compressor localization agreement is the principal future margin and growth optionality, but current-quarter evidence remains volume/top-line-led rather than margin-led.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,032.11 Cr | +17.5% | -1.7% |
| EBIT | ₹58.21 Cr | +19.4% | N/A |
| Net profit | ₹41.52 Cr | +1.7% | N/A |
| EPS | ₹6.36 | +1.6% | N/A |
| EBIT margin | 8.4% |
P&L walk
Revenue increased to ₹1,03,211 lakh (+17.5% YoY, -1.7% QoQ), but raw-material intensity rose to 73.5% from 60.1% YoY, compressing gross margin by approximately 1,330bps and pulling EBITDA margin down to 8.4% from 9.1%; EBIT nevertheless rose 19.4% YoY because depreciation fell 6.6%.
Key positives
- Revenue was ₹1,03,211 lakh, up 17.5% YoY versus 8.4% YoY in Q1FY26, marking a clear acceleration in top-line momentum.
- EBIT was ₹5,821 lakh, up 19.4% YoY, supported by depreciation declining 6.6% YoY to ₹2,878 lakh.
- The technical assistance agreement with DENSO Corporation and Toyota Industries Corporation enables localization of electric compressors for Indian electric and hybrid vehicles, creating a defined EV thermal-management growth avenue.
Key concerns
- Gross margin compressed approximately 1,330bps YoY to 26.5% as raw-material cost including inventory change rose to 73.5% of revenue from 60.1%; the filing does not disclose the cause.
- EBITDA margin fell 70bps YoY to 8.4%, and EBITDA growth of 9.3% lagged revenue growth of 17.5%, showing limited conversion of the stronger top line into operating profit.
- PAT rose only 1.7% YoY to ₹4,152 lakh despite 17.5% revenue growth, and declined 15.8% sequentially.
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