TVS Elec. Q1 FY27 Results (NSE: TVSELECT)
Signal: Loss widened
The read
The quarter marks an operating deterioration despite 9.6% YoY revenue growth: gross margin fell 710bps to 47.6% as material intensity rose to 52.4% of revenue, Products & Solutions swung to a ₹297 lakh loss, and PAT widened to a ₹662 lakh loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹106.04 Cr | 9.6% | -9.6% |
| EBIT | ₹-5.83 Cr | -139.9% | N/A |
| Net profit | ₹-6.62 Cr | -86.5% | N/A |
| EPS | ₹-3.55 | -86.8% | N/A |
| EBIT margin | -1.7% |
P&L walk
Revenue increased 9.6% YoY to ₹10,604 lakh but declined 9.6% QoQ; gross margin compressed to 47.6% from 54.7% as material and inventory costs rose to 52.4% of revenue, driving EBITDA to -₹182 lakh and PAT to -₹662 lakh.
Segments
The Products & Solutions segment was the main inflection point: revenue grew 12.4% YoY to ₹7,252 lakh but its result swung from a ₹12 lakh profit to a ₹297 lakh loss, while Customer Support Services remained loss-making at -₹343 lakh.
Key positives
- Revenue increased 9.6% YoY to ₹10,604 lakh, with Products & Solutions revenue up 12.4% YoY to ₹7,252 lakh.
- Finance costs declined 12.7% YoY to ₹145 lakh, limiting the deterioration below EBITDA.
Key concerns
- Gross margin compressed 710bps YoY to 47.6% as raw materials, purchases and inventory costs reached 52.4% of revenue versus 45.3% a year earlier.
- Products & Solutions swung from a ₹12 lakh segment profit in Q1FY26 to a ₹297 lakh loss despite 12.4% revenue growth, indicating absorbed cost pressure or adverse mix.
- EBITDA was -₹182 lakh and EBITDA margin was -1.7%, while PAT deteriorated to a ₹662 lakh loss from a ₹355 lakh loss.
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