Sundaram Brake Q1 FY27 Results (NSE: SUNDRMBRAK)
Signal: Loss reversed
The read
The key inflection is a YoY return to profit, with PAT at ₹48.21 lakh versus a ₹53.23 lakh loss and operating margin at 2.29% versus an estimated 1.73% YoY; however, the trajectory weakened sharply sequentially as gross margin fell 554bps from Q4, raw-material intensity rose to 53.47%, and PAT dropped 93.54% after other income fell 74.56%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹90.98 Cr | -1.12% | +0.60% |
| Net profit | ₹0.48 Cr | NM | |
| EPS | ₹1.23 | NM | |
| EBIT margin | 2.29% |
P&L walk
Standalone revenue was ₹9,097.73 lakh, down 1.12% YoY, while raw-material intensity rose 566bps YoY and sequential cost absorption drove EBITDA margin down to 2.29% from 9.38% in Q4.
Key positives
- PAT recovered to ₹48.21 lakh from a ₹53.23 lakh year-ago loss, while finance cost declined 25.98% YoY to ₹75.61 lakh.
- Employee benefits plus other expenses declined 5.00% YoY despite revenue declining only 1.12%, supporting a modest 56bps YoY improvement in operating margin.
Key concerns
- Gross margin compressed 117bps YoY to 46.08% and 554bps QoQ as raw-material cost increased to 53.47% of revenue from 47.81% YoY.
- Revenue declined 1.12% YoY to ₹9,097.73 lakh, and the filing provides no volume or realisation data to establish an underlying demand recovery.
- PAT fell 93.54% QoQ to ₹48.21 lakh as other income declined from ₹201.47 lakh in Q4 to ₹51.25 lakh.
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