Trejhara Solutio Q1 FY27 Results (NSE: TREJHARA)
Signal: Margin pressure
The read
Q1FY27 consolidated revenue more than doubled to ₹67.64 Cr (+682% YoY) on logistics scaling, but EBITDA margin compressed to 11% (from 33%) as operating costs surged; PAT at ₹4.83 Cr (+615% YoY) was boosted by lower exceptional losses and higher other income. The standalone software business declined 10% YoY, making the group's trajectory entirely dependent on the logistics subsidiaries' execution and cost control.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.68 Cr | 682.0% | -52.4% |
| EBIT | ₹0.06 Cr | 531.3% | |
| Net profit | ₹0.05 Cr | 615.0% | |
| EPS | ₹2 | 334.8% | |
| EBIT margin | 11% |
P&L walk
Revenue surged to ₹6,763.77 lakh (+107% YoY vs ₹3,263.81 lakh), but operating expenses rose faster (operating expenses up 87% to ₹4,546.50 lakh, employee costs up 108% to ₹954.11 lakh, other expenses up 254% to ₹597.43 lakh), compressing EBITDA margin to 11% (from 33% a year ago). Depreciation of ₹122.23 lakh (+23% YoY) and finance costs of ₹83.44 lakh (+262% YoY) further weighed, but PAT jumped to ₹479.04 lakh as prior year had an exceptional loss of ₹37.97 lakh. PAT growth vs revenue — profit rose 350% while revenue grew 107%, a 243pp gap aided partly by lower tax and base effect.
Segments
The single logistics services segment drives the entire consolidated result; standalone revenue (₹2,684.51 lakh) is only 40% of consolidated revenue and generates negligible profit (PAT ₹19.61 lakh vs consolidated PAT ₹479.04 lakh), confirming earnings originate from the logistics subsidiaries.
Key positives
- Consolidated revenue surged 107% YoY to ₹6,763.77 lakh, driven by logistics subsidiaries' expansion.
- PAT grew 351% YoY to ₹479.04 lakh, with EPS up 335% to ₹2.00, reflecting strong bottom-line growth.
- Auditor issued unmodified conclusion on both standalone and consolidated results — no qualifications.
Key concerns
- EBITDA margin compressed to 11% from 33% a year ago — a 2200bps decline — as operating expenses grew 87% while revenue grew 107%, indicating cost pressures.
- Finance costs surged 262% YoY to ₹83.44 lakh, pointing to higher debt in the logistics subsidiaries.
- Standalone revenue declined 10% YoY and standalone PAT fell 23% — the core software business is shrinking.
- Revenue coverage for audit is only 73.54%, below the 80% threshold required by SEBI regulation (noted by auditor).
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