Swiss Military Q1 FY27 Results (NSE: SWISSMLTRY)
Signal: Revenue declined
The read
The key inflection is gross margin expanding 468bps YoY to 22.47% and EBITDA margin recovering 183bps QoQ to 4.30%, but the improvement did not translate into profit growth because revenue fell 3.4%, employee plus other expenses rose 35.5%, and depreciation increased 354.4%; PAT consequently declined 29.4% to ₹136.46 lakh, extending the recent weak margin trajectory versus 5.63% in Q4FY25 and 2.47% in Q4FY26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹53.65 Cr | -3.4% | -17.3% |
| EBIT | ₹1.78 Cr | -30.2% | |
| Net profit | ₹1.36 Cr | -29.4% | |
| EPS | ₹0.06 | -25.0% | |
| EBIT margin | 4.30% |
P&L walk
Consolidated revenue declined 3.4% YoY to ₹5,364.76 lakh, but gross margin expanded 468bps to 22.47% as purchases fell to 60.67% of revenue; higher employee and other expenses and depreciation reduced EBITDA margin to 4.30% and EBIT to ₹178.43 lakh, driving PAT down 29.4% to ₹136.46 lakh.
Key positives
- Gross margin expanded 468bps YoY to 22.47% as purchases / operating expenses fell to 60.67% of revenue from 84.60%; the filing does not disclose whether this is input-cost, pricing or mix-led.
- Finance costs declined 17.1% YoY to ₹30.97 lakh, limiting the pressure below EBIT.
- EBITDA margin recovered 183bps QoQ to 4.30% from 2.47%, although it remained 51bps below year-ago.
Key concerns
- Revenue declined 3.4% YoY to ₹5,364.76 lakh and 17.3% QoQ, with no volume, price or mix disclosure to explain the slowdown.
- EBITDA declined 13.7% YoY to ₹230.41 lakh and margin contracted 51bps despite gross-margin expansion because employee plus other expenses rose 35.5% YoY.
- Depreciation rose 354.4% YoY to ₹51.98 lakh, materially reducing EBIT; the filing provides no asset-base or CWIP detail.
- Inventory-change expense was ₹904.64 lakh versus a ₹132.77 lakh credit in the year-ago quarter, a material swing that requires balance-sheet and working-capital confirmation.
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